- Crypto.com’s Matt Damon advertisement was tepid at best.
- The exchange paid $700 million for naming rights in November of Staples Center.
Crypto.com’s exchange volume isn’t looking particularly good at the moment. As reported by CoinGecko, since last year, Crypto.com has seen its normalized exchange volume plummet by 91%, from $4 billion to $380 million per day using a 7-day average. The company’s attempt to boost growth by using a famous face didn’t appear to work, yet it doesn’t mean the ad was to blame for the decline.
The bear market is also a factor to consider since it is responsible for the majority of the decline in market capitalization seen in the cryptocurrency markets over the last year. However, the response to Crypto.com’s Matt Damon advertisement was tepid at best even before the markets suffered their massive plunge.
Struggle Continues Despite Marketing
Investors in cryptocurrencies were linked in the commercial to the likes of astronauts, mountaineers, and the Wright Brothers. The Los Angeles arena previously known as the Staples Center was renamed after Crypto.com paid $700 million for naming rights in November, not long after it debuted.
There was an impression at the time that the marketing initiatives had improved the exchange. The Damon advertisement, meanwhile, circulated inside the crypto community for a time before beginning to reach a wider audience in January of this year.
The decline in trade volume is just part of the problem. According to CoinGecko’s data, the native Cronos coin (CRO) of the exchange has a market value of $2.8 billion and is trading at $0.11 on Friday afternoon. Similar to last year, each of those indicators is around half of what they were.
With repeated waves of layoffs and the loss of a $495 million sponsorship agreement with the European Champions League in recent months, Crypto.com has had significant financial difficulties.