Major Crypto Companies Abruptly Stop Sports Deals in Face of Falling Prices

– Cryptocurrencies have crashed in value since late last year, and the fallout is impacting sports sponsorships.
– Two high-profile deals between teams and crypto exchanges have reportedly fallen apart due to the value drop.
– In the past few weeks, FTX suspended talks with the Los Angeles Angels on a jersey patch deal.
– A patch deal between a crypto company and the Washington Wizards was also scuttled.
– The prices of bitcoin and ethereum, the two most valuable cryptocurrencies, have respectively dropped by 69.1% and 76.7% since their November peaks.
– The pullback comes after a period when crypto companies poured billions into sports sponsorships.
– Crypto.com would reportedly have to pay $385 million to pull out of the naming rights deal.
– In the 2021-22 NBA season, crypto companies jumped to the second-biggest spenders with $100 million to $150 million in sponsorship deals after placing 43rd the previous season.