Crypto

Are teams’, leagues’ and athletes’ embrace of crypto misleading fans?

Published

3 years ago

May 20, 2022

Are teams’, leagues’ and athletes’ embrace of crypto misleading fans?

Cryptocurrencies and the exchanges they commerce on have been a runaway gravy prepare in sports activities previously yr, with athletes hawking them in adverts, groups coming into partnerships, arenas inking naming rights offers and even umpires carrying logos.

However as evidenced by final week’s crypto crash, there’s a danger when investing in unregulated belongings. So ought to well-known athletes, groups and leagues be encouraging followers to purchase in?

Arthur Solomon, a former govt at international public relations agency Burson-Marsteller, termed crypto endorsements by groups, leagues and athletes a “disservice” as a result of it’s unregulated funding recommendation. “There are skilled funding advisers who’re regulated by the federal government to provide monetary recommendation, and I consider that the FTC and different authorities companies shouldn’t allow somebody, simply because he can hit a house run or throw a landing go, to provide monetary recommendation on public airwaves,” he stated.

Philadelphia 76ers jerseys embrace an commercial for Crypto.com. (Mitchell Leff / Getty Photographs)

As for leagues and groups, Solomon is much more essential, calling them “shameless” and lumping crypto into the identical class as beer and liquor and playing commercials seen by children and susceptible adults throughout video games.

The priority critics have shouldn’t be that groups and leagues will see sponsorships collapse however that the sports activities entities are encouraging followers to spend money on a dangerous, unregulated market. Sports activities cultural commentator Bomani Jones devoted an entire part of his HBO present to the area, which he described as a “con.”

“Folks name it foreign money, however that’s only a phrase they use to maintain the followers off the scent,” Jones stated.

However not everybody sees a difficulty with the promotion of crypto in sports activities. Many athletes and groups obtained into crypto as a result of it’s marketed as the way forward for cash. It’s seen because the cool factor, with Tom Brady backing crypto trade FTX in humorous commercials and Steph Curry and Trevor Lawrence additionally backers, whereas Joe Burrow hypes Bitcoin.

“It’s new and thrilling,” stated Doug Shabelman, CEO of Burns Sports activities & Leisure, an company that focuses on movie star endorsement. “So why shouldn’t these guys need to exit and do it? You recognize, it’s one thing completely different than the standard, and there’s cash.”

Crypto fanatic Mark Cuban, proprietor of the Dallas Mavericks, doesn’t see a difficulty.

“Have a look at the inventory market,” Cuban wrote in an e-mail. “Fb, Amazon and Apple have misplaced extra in market cap than the whole crypto market. A ton of tech corporations have misplaced 80 p.c or extra of their worth. I don’t see anybody questioning sponsorships by these corporations.”

The distinction is these corporations promote to get shoppers to purchase or use their merchandise, the identical approach potato chip manufacturers or restaurant chains would possibly. If their inventory falls and the sponsorship goes away, it doesn’t have an effect on the fan who purchased the underlying product.

Crypto sponsorships and endorsements are completely different in that they’re searching for followers to place their cash in danger. Nonetheless, Cuban writes, “Their values go up and down relying on how they carry out and the way a lot danger buyers need to take. In truth, the Nasdaq and crypto markets are fairly extremely correlated. They have an inclination to go up and down collectively.”

Whereas which will or might not be true, there’s a danger to sports activities entities by intently aligning with unstable belongings. Final week, the Washington Nationals, who’ve a $38 million sponsorship with cryptocurrency Terra, tweeted a hype video for the funding because the coin crashed. The crew and Main League Baseball declined to remark.

The crypto crash, which at one level worn out roughly $1 trillion of worth, introduced tales of buyers shedding their life financial savings. The crypto markets have stabilized considerably this week, however the specter of wild volatility stays.

“Will they be a reputational black eye?” linked sports activities marketing consultant Marc Ganis requested of crypto. “That is the place the groups have to stability cash with danger — reputational danger. The truth is that when a crew indicators a serious sponsor or when a league indicators a serious sponsorship deal, there may be an expectation that that may be a first-tier firm. And so it will get a number of the credibility, a number of the aura of the credibility that the league or the crew has. And that will get conveyed on to the sponsor.”

Clearly, there haven’t been such worries, evidenced by quite a few sponsorships, together with Crypto.com’s 20-year, $700 million naming rights for the previous Staples Middle and FTX’s $135 million deal to call the Miami Warmth enviornment. FTX even has a patch deal for MLB umpire uniforms. There have been so many crypto adverts throughout the Tremendous Bowl, which offered on common for over $6 million per 30-second spot, that some dubbed the sport the Cryptobowl.

Umpire Alfonso Marquez’s shirt contains a number of patches promoting FTX. (Charles LeClaire / USA Right now)

However whereas crypto is billed as the way forward for cash, the class is extra akin to an funding than a foreign money, although it’s utilized in some transactions and a handful of athletes have famously transformed their salaries into crypto. However even FTX founder Sam Bankman-Fried stated lately that Bitcoin, the preferred crypto cost, has no future as a foreign money as a result of the technological system couldn’t deal with it.

And former Federal Reserve chairman Ben Bernanke instructed CNBC this week: “Bitcoin and different currencies, cryptocurrencies whose worth adjustments minute to minute, they’ve been profitable as a speculative asset. And persons are seeing the draw back of that proper now. However they have been supposed to be an alternative to fiat cash. And I feel, in that respect, they haven’t succeeded. As a result of if bitcoin have been an alternative to fiat cash, you could possibly use bitcoin to go purchase your groceries. No one buys groceries with bitcoin as a result of it’s too costly and too inconvenient to do this.

“So I don’t suppose that bitcoin goes to take over in its place type of cash. It’ll be round so long as persons are believers and so they need to speculate.”

So if it’s a speculative asset, ought to sports activities groups, leagues and gamers be pumping it up? Different corners of finance, from derivatives to mortgage-backed securities, which sparked the 2008 monetary disaster, don’t have their very own sports activities cheering part.

The NFL, which solely in March allowed crew sponsorship of crypto exchanges however not currencies, says it views crypto within the bigger perspective of blockchain, the decentralized digital expertise that underpins crypto. On blockchain, non-fungible tokens, that are digital footage and highlights, have traded for tens of millions of {dollars}, although the market has cooled.

“It’s a area we need to be considerate and cautious,” stated Joe Ruggiero, the NFL’s senior vice chairman of client merchandise. However the league has “curiosity in entering into the area as a result of it’s a method to interact with followers in an fascinating approach,” he added, citing digital commemorative ticket stubs.

Thus far, solely the Dallas Cowboys have inked a crypto trade deal, with blockchain.com, however different groups are busy probing the area.

The NBA permits for offers within the cryptocurrency area, together with crypto exchanges, however doesn’t enable for the promotion of particular cryptocurrencies. The league advises its groups to vet potential companions earlier than coming into into any promotional or different preparations. These primary guidelines are for the WNBA as effectively.

Main League Soccer, which has a youthful demographic and is much less financially strong than its 4 legacy peer leagues, has been wading into the crypto area, which additionally contains blockchain, NFTs and exchanges. In a bid to enchantment to its youthful, tech-savvy fan base, the league and its groups have struck a number of offers, together with D.C. United’s three-year, $18 million jersey sponsorship signed in February with blockchain tech agency XDC Community.

In March, Nashville FC introduced its sponsorship take care of digital belongings administration agency Valkyrie Investments could be paid in bitcoin, the primary MLS crew to take crypto as an alternative of U.S. {dollars} for a partnership. Inter Miami and the New England Revolution even have struck crypto-related partnerships.

MLS declined to remark

Defenders of sports activities engagement with crypto level to a distinction between backing a selected coin versus the exchanges like FTX and crypto.com which have spent huge sums up to now. Coinbase signed a deal in October to develop into the official cryptocurrency trade of the NBA, WNBA and G League.

And Cuban wrote in an e-mail, “Except a crew has Terra as a sponsor, it’s a non-event.” Terra is the crypto the Nats promote and which crashed dramatically final week.

Los Angeles’ Staples Middle turned Crypto.com Enviornment in December. (Gary A. Vasquez / USA Right now)

Comparisons are additionally made with the dot-com bubble burst of the early 2000s. Within the lead-up to it, web corporations like CMGI and PSINet and retailers comparable to pets.com spent closely on sports activities, solely to vanish and in some circumstances default on sponsorship funds. Lots of the crypto exchanges are effectively financed, so their offers for naming rights to arenas and different offers in the meanwhile look protected.

The priority critics have, nevertheless, shouldn’t be that groups and leagues will see sponsorships collapse however that the sports activities entities are encouraging followers to spend money on a dangerous, unregulated market.

David Carter, govt director of the College of Southern California’s Sports activities Enterprise Institute, stated youthful sports activities followers would possibly view crypto merely as a part of their lives now and don’t deal with it with the identical risk-aversion and uncertainty as older folks.

“A variety of it has to do with the patron they’re attempting to achieve,” Carter stated. “A crew, league or sports activities property, you perceive that and also you’re taking a measured danger. One individual’s sin class is one other individual’s compelling income stream.”

Jonathan Jensen, a sports activities advertising knowledgeable and assistant professor on the College of North Carolina-Chapel Hill, stated crypto received’t be the final dangerous class to make use of sports activities to advertise itself.

“After fledgling tech corporations, subprime mortgage corporations and cryptocurrency, I’m sure there can be one other rising, new business that may make the most of sports activities sponsorship to prop itself up,” Jensen stated. “It’s type of constructed to do this. Generally it really works, and oftentimes it doesn’t.”

(Prime picture of Cowboys proprietor Jerry Jones presenting Blockchain.com CEO Peter Smith with a jersey after asserting a partnership: Richard Rodriguez / Getty Photographs)

Related Topics:MLB Mls NBA NFL Sports Business

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Crypto

Trump’s new meme coins have MAGA crypto bros up in arms

Published

6 hours ago

January 21, 2025

Press Room

Trump’s new meme coins have MAGA crypto bros up in arms

Happy Tuesday! Here’s your Tech Drop, my weekly compilation of the past week’s top stories from the intersection of technology and politics.

Trump meme coins cause a rift in MAGA world

Cryptocurrency enthusiasts are not happy about Donald and Melania Trump’s new “meme coins” — essentially, glorified trading cards. The digital tokens seem like a perfect vessel for anyone, including foreign governments, to funnel money to the Trump family. That’s one reason why some experts have said the ventures — launched within days of Trump’s inauguration — are ripe for blatant corruption.

And even some of Trump’s biggest fans are bemoaning the move. The Wall Street Journal published an article that quotes Trump-supporting crypto bros who are worried that this move will delegitimize the industry. On Monday, the Rev. Lorenzo Sewell, the pastor who gave the benediction at Trump’s swearing-in, announced that he also has launched a meme coin. Probably not helping with that whole legitimacy thing.

TikTok’s legal limbo

Trump’s executive order requiring the postponement of the TikTok ban, which was set to take effect in the U.S. this week, appears to have saved the app for now. At least, that’s what Trump and the app’s owners want us to think.

But Business Insider published an article raising questions about Trump’s authority to single-handedly overrule a law that received overwhelming bipartisan support in Congress and was unanimously upheld by the Supreme Court.

Creepy ‘surveillance pricing’

In one of its last acts during the Biden administration, the Federal Trade Commission and its then-chair, Lina Khan, revealed the initial findings of the agency’s “surveillance pricing” market study. The report shows how companies can manipulate pricing based on personal data. According to the FTC, “details like a person’s precise location or browser history can be frequently used to target individual consumers with different prices for the same goods and services.”

Kristi Noem’s concerning misinfo plans

South Dakota Gov. Kristi Noem, whom Trump has nominated to lead the Department of Homeland Security, says she wants to shut down the department’s efforts at fighting foreign actors’ misinformation campaigns targeting Americans, effectively saying she wants to leave Americans vulnerable to manipulation.

Biden’s FCC chair warns about Trump

On her way out the door, outgoing Federal Communication Commission Chair Jessica Rosenworcel warned about Trump’s efforts to suppress free speech and press freedoms. In a post last week, I wrote about the statement she released while dismissing multiple complaints from activist groups seeking to punish news outlets for coverage they didn’t like.

Rosenworcel compared Trump’s attacks on the First Amendment to actions taken by Presidents Richard Nixon and John Adams, and she also cited his push to “revoke licenses for broadcast television stations because he disagrees with their content and coverage” — noting that the FCC “has a duty to respect the Constitution.”

Bigwigs snicker at Sewell’s remarks

The aforementioned pastor, Sewell, has garnered criticism — including from MSNBC’s Joy Reid — for his inaugural benediction, which borrowed from the Rev. Martin Luther King Jr.’s “I Have a Dream” speech and relied on what seemed like an overdone Black preacher affect. One thing I noted? Google CEO Sundar Pichai and Cantor Fitzgerald CEO Howard Lutnick seemingly found the performance pretty funny as they watched and snickered in the background.

To me, the sight — of MAGA-aligned elites giggling during a King-inspired performance on MLK Day — epitomized some of the disrespect that Black people have come to expect from Trump and his movement.

A far-right influencer speaks … gibberish

Far-right influencer Curtis Yarvin — who has pushed racist pseudoscience, promoted the idea of dictatorial leadership and been name-checked by JD Vance — gave an interview to The New York Times recently. The interview, in which Yarvin explains his belief that the Civil War didn’t improve anyone’s lives — including enslaved people’s — is a perfect example of how pseudo-intellectual jargon and obfuscation can be used to mask bigotry.

Crypto

Trump's Executive Actions Signal a New Era for Cryptocurrency Regulation | PYMNTS.com

Published

14 hours ago

January 21, 2025

Press Room

Trump's Executive Actions Signal a New Era for Cryptocurrency Regulation | PYMNTS.com

President-elect Donald Trump is reportedly planning to use his executive authority to support cryptocurrency companies and promote broader digital asset adoption during the early days of his administration, according to Reuters. This initiative marks a sharp departure from the regulatory approach under President Joe Biden’s administration, which took stringent measures to address fraud and money laundering in the crypto sector.

Executive Orders to Signal Crypto Support

Trump is expected to issue an executive order establishing a cryptocurrency advisory council, a proposal he initially suggested in July, as reported by Reuters. Two sources familiar with the discussions noted that this council could include up to 20 members tasked with advising the government on creating crypto-friendly policies. Bloomberg News was the first to report the plan to establish such a council.

Additionally, Trump’s team has reportedly discussed reversing specific regulatory measures that have posed challenges for crypto companies. According to Reuters, one potential target is the 2022 Securities and Exchange Commission (SEC) accounting guidance known as “SAB 121,” which has been criticized for increasing costs for companies, particularly banks, attempting to hold cryptocurrencies for third parties. This action could alleviate financial burdens and facilitate greater participation in the crypto market.

Related: FTC Raises Antitrust Concerns Over Big Tech’s AI Partnerships

Controversial “Operation Choke Point 2.0” in Focus

Another area of focus for the incoming administration is addressing concerns raised by cryptocurrency executives about “Operation Choke Point 2.0.” This term, used by industry insiders, describes what they perceive as a coordinated effort by bank regulators to restrict crypto companies’ access to traditional financial services. While bank regulators have denied the existence of such an initiative, sources cited by Reuters suggest that Trump plans to issue an executive order to halt these practices.

Broader Implications for the Crypto Sector

If implemented, these policy changes could significantly impact the cryptocurrency industry by fostering a more supportive regulatory environment. Experts in both the regulatory and crypto spaces told Reuters that such actions might accelerate the mainstream adoption of digital assets, signaling a new era for the sector under the Trump administration.

This approach stands in stark contrast to the policies of the Biden administration, which pursued legal action against major cryptocurrency exchanges, including Coinbase, Binance, and Kraken, in efforts to combat illicit activities and safeguard consumers.

Source: Reuters

Crypto

Top Cryptocurrency to Invest in Before Prices Soar, According to Market Data

Published

22 hours ago

January 21, 2025

Press Room

Top Cryptocurrency to Invest in Before Prices Soar, According to Market Data

More than 560 million people worldwide currently own crypto assets, and new and seasoned investors alike are constantly looking for promising new projects to buy into.

New projects can usually be purchased at lower prices, when compared to established coins, and often have the potential to sky-rocket in value. Because of the potential gains to be had, investors are constantly on the lookout for possible investments.

Let’s explore the upcoming crypto that investors should think about buying before prices go up.

Upcoming Crypto With Potential

Investors often do their own research to find the best new projects to buy into. Research usually includes listening to the news, reading crypto blogs, and following sites like Coinbase closely. Coinbase provides a crucial gateway to adopt new cryptocurrencies. The “Coinbase Effect” describes new tokens listed that often experience significant price surges of 20-50%. It’s the ideal source of investment opportunities for short-term investors. Because of this, investors often review upcoming Coinbase exchange listings to find promising new coins. Crypto writer Michael Graw explains that Coinbase is known for its strict vetting process. This means that the coins listed on Coinbase have already been reviewed by experts, which many investors appreciate. Between checking sites like Coinbase, keeping up with the news, and reading crypto articles online, investors can stay up to date with potential coins to invest in. Here are a few of the top choices:

Ethereum: The Smart Contract Powerhouse

Ethereum dominates the decentralised application (dApp) realm, particularly with the Ethereum 2.0 rollout that enhances energy efficiency and scalability. Ethereum currently trades at around £5,000, providing a top choice for retail and institutional investors. The smart contract giant provides opportunities for long-term investments.

Analysts project that Ethereum could double its value over the next 1.5 years because the network demand continues to grow. The blockchain’s ecosystem hosts decentralised exchanges, DeFi platforms, and NFTs, engraving Ethereum’s status in the blockchain space as a critical infrastructure with smart contracts for data privacy and security.

Bitcoin: The Dominant Crypto Force

Bitcoin is the foundation of the cryptocurrency market, capitalising the industry at a market value of £1.5 trillion and currently trading around the £76,000 marker in early December. Bitcoin’s inflation hedge capabilities and reliable long-term value stores make it indispensable in an investor’s diversified portfolio.

Tim Draper, a trusted venture capitalist, predicts Bitcoin to hit $250,000 or £198,000 by the end of 2025, indicating the potential for a 150% growth rate on the cryptocurrency’s market. Increasingly supportive government policies and adoption will drive Draper’s predictions. For example, there is a proposed Bitcoin reserve for the US market.

High-Potential Altcoins

Solana: Exceptional Scalability and Speed

Solana is known as the Ethereum killer because it provides faster transaction speeds, reaching 65,000 transactions a second. It also charges minimal fees and has an ecosystem valued at over £25 billion. Solana is fast becoming a good choice for NFTs and DeFi applications. Additionally, analysts forecast the potential for 80-120% returns by mid-2025.

Wall Street Pepe: Trading and Staking

Wall Street Pepe ($WEPE) is showing great promise in the crypto scene. This coin ticks all of the usual boxes but also allows investors to showcase their best trades each week to win prizes. Additionally, investors can stake their Wall Street Pepe in order to earn more from what they already have, which is a win-win.

Polkadot and Polygon: Specialists in Scalability

Polygon enables faster and more affordable transactions by addressing scalability issues in Ethereum, providing layer-2 solutions. The current market cap valuation is around £10 billion but projections show possible doubling by the end of 2025. Polkadot uses a unique parachain technology that allows interoperability between blockchains, and the price prediction indicates the potential for a 383% return on investment (ROI) by the end of 2025.

XRP: Riding the Legal Victory Wave

The Ripple Network’s native token XRP shows promise with a fragmented victory against the US Securities and Exchange Commission (SEC). XRP has surged 120% since mid-2024, currently trading at around £1. Ripple’s partnerships with major giants like Standard Chartered and Santander have analysts believing it may double in value by the end of 2025.

Chainlink: Bridging Real-World Data With Blockchain Technology

Chainlink plays a pivotal role in the decentralised oracle industry, currently trading at around £7.20 and having an impressive early market cap of £3.7 billion. The technology innovates how real-world data and smart contracts interact, making it an integral tool for DeFi and enterprise solutions. Chainlink also integrates well with Solana and Ethereum and predictions show the potential for an 85% price surge by the end of 2025.

The Impact of Institutional Interest

The cryptocurrency investment landscape relies heavily on institutional interest. For example, spot Bitcoin ETF introductions captivated billions in capital while funds like the iShares Bitcoin Trust accumulated more than £30 billion in months.

Still, institutional investors use diversified portfolios with utility-driven digital assets like Chainlink to secure smart contracts. Avalanche, another fast blockchain, is also gaining traction in DeFi, with both Altcoins positioned to exceed 100% returns by the end of 2025.

The Role of Regulation

The Financial Conduct Authority (FCA) allows UK investors to benefit from a more secure and transparent cryptocurrency investment domain. The FCA implemented measures to regulate cryptocurrency advertisements to guarantee clear guidelines for retail investors.

The widespread adoption and regulatory improvements are expected to entice more attention from institutional investors to ensure sustainable growth while the regulatory guidelines protect everyday investors seeking long-term but steady investment prospects.

Retail Diversification and Sentiment

The retail investor environment drives market trends harder than most institutions, especially with sentiment-driven initiatives using consumer-centric tokens. Some new Coinbase listings show promise for short-term volatility with possible price surges in 2025.

However, retail investors prefer the active ecosystems, innovative decentralisation, and robust fundamentals of Bitcoin, Ethereum, and some older Altcoins. If investors could learn anything from the retail sector, it would be to diversify their portfolio with high-return crypto.

Diversify investment portfolios with well-known and stable cryptocurrencies like Ethereum or Bitcoin while adding some high-potential Altcoins like Cardano, Polygon, and Solana to balance the risk and reward as retail investors do.