AP

Year after ‘Crypto Bowl,’ crypto ads vanish from big game

Feb 9, 2023, 5:16 PM | Updated: Feb 10, 2023, 10:21 am

FILE - The logo for cryptocurrency company FTX is displayed on the arena once known as FTX Arena, a...

FILE - The logo for cryptocurrency company FTX is displayed on the arena once known as FTX Arena, and now called Miami-Dade Arena, on Nov. 12, 2022, in Miami. Cryptocurrency companies grabbed the spotlight during the 2022 Super Bowl with commercials from a handful of newcomers to advertising's biggest stage. A year later, the industry has been humbled by a massive downturn in crypto prices, as well as the bankruptcy of several well-known companies. (AP Photo/Marta Lavandier, File)

(AP Photo/Marta Lavandier, File)

NEW YORK (AP) — How the mighty have fallen.

Cryptocurrency companies grabbed the spotlight during the 2022 Super Bowl, with commercials from a handful of newcomers to advertising’s biggest stage: FTX, Coinbase, Crypto.com and eToro. Some marketing experts dubbed it the “Crypto Bowl.”

A year later, the industry has been humbled by a massive downturn in crypto prices, as well as the bankruptcy of several well-known companies.

The dramatic turnaround harkens back to 2000, when dot-com companies such as Pets.com ran Super Bowl ads, only to go out of business within a year or two.

This year, crypto companies have “zero representation,” said Mark Evans, executive vice president of ad sales for Fox Sports.

Here’s a look at the crypto companies that advertised in last year’s Super Bowl and where they stand now:

FTX: BANKRUPT

Cryptocurrency exchange FTX was one of biggest advertisers in last year’s Super Bowl, featuring ads that included celebrity comedian Larry David. While at the time FTX was the world’s second or third largest crypto exchange, it didn’t operate a large business in the U.S.

Within 10 months of the Super Bowl, FTX was bankrupt. The Bahamas-based company collapsed after investors started pulling their deposits on concerns about the company’s balance sheet. The company filed for Chapter 11 bankruptcy protection on November 11.

FTX’s founder and CEO Sam Bankman-Fried was arrested and charged with defrauding customers out of billions of dollars. He is scheduled to go on trial in October.

David, along with other celebrities such as football star Tom Brady and basketball star Stephen Curry, was named in a lawsuit that argued their celebrity status made them culpable for promoting the firm’s failed business model.

CRYPTO.COM: HUMBLED

While Crypto.com still is operating, the company is significantly less healthy than it was a year earlier.

The Singapore-based company announced in January that it was laying off 20% of its workforce, on top of layoffs implemented in late 2022. The company also disclosed that a significant part of its assets were tied up in low-quality cryptocurrency coins like the Shiba Inu Coin.

Like FTX, Crypto.com tried to make a name for itself through sports sponsorships. The company spent $700 million for the naming rights to the former Staples Center, where the Los Angeles Lakers play. It’s now the Crypto.com Arena. The company’s 2022 Super Bowl ad featured basketball superstar LeBron James, with the tagline “fortune favors the brave.”

Crypto.com said its layoffs were due to a “confluence of negative economic developments” but its CEO placed a significant amount of blame on the collapse of FTX.

COINBASE: IN LEGAL HOT WATER

Coinbase had one of the weirder ads at least year’s Super Bowl, involving a floating QR code that would take users to a promotion where the company was giving away millions of dollars’ worth of cryptocurrencies. Marketing experts named it one of the more successful ads of the game, since it took people by surprise and stood out, though many viewers found it confusing.

Shares of publicly traded Coinbase have fallen by more than 70% since last year’s game. With digital currencies such as bitcoin plunging, the company has seen trading revenues dry up as investors have avoided buying crypto altogether.

The company also announced layoffs equal to about 20% of its workforce and the company’s CEO has said the company is bracing for what they are calling “a crypto winter.”

Further, Coinbase has drawn the attention of U.S. regulators. The company had to pay $100 million to settle a New York State investigation into whether it was allowing users to sign up for accounts without adequate background checks. The Securities and Exchange Commission is also looking into whether to ban the cryptocurrency practice of “staking,” which had been big business for Coinbase in the past.

ETORO: NO NEWS IS GOOD NEWS?

The fourth crypto company to have a Super Bowl ad last year was eToro. The company, based in Israel, ran an ad promoting “social investing.”

Unlike FTX, Coinbase and Crypto.com, eToro has largely avoided any negative news in the past year. The company expanded its offerings beyond crypto to allow users to buy stocks and options as well as non-fungible tokens, better known as NFTs.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Image: A cargo ship is stuck under the part of the structure of the Francis Scott Key Bridge after ...

Associated Press

Authorities identify 2 bodies recovered at site of Baltimore bridge collapse

A major bridge in Baltimore snapped and collapsed after a container ship rammed into it early Tuesday, and several vehicles fell into the river below.

9 hours ago

Photo: Mountaineer Jim Whittaker has died at 95....

Gene Johnson, The Associated Press

Lou Whittaker, among the most famous American mountaineers, has died at age 95

Lou Whittaker, a legendary American mountaineer who helped lead ascents of Mount Everest, K2 and Denali, has died at age 95.

10 hours ago

File photo: Former Sen. Joe Lieberman speaks in Washington on Jan. 18, 2024....

Associated Press

Former Sen. Joe Lieberman, Democrats’ VP pick in 2000, dead at 82

Former U.S. Sen. Joe Lieberman of Connecticut, who nearly won the vice presidency on the Democratic ticket with Al Gore in 2000, has died.

10 hours ago

islamic state attack...

Vanessa Gera, The Associated Press

What we know after the Islamic State group claims responsibility for Moscow massacre

The Islamic State group has claimed responsibility for an attack on a suburban Moscow concert hall that killed at least 133 people.

4 days ago

Moscow shooting...

The Associated Press

Russia: 60 dead, 145 injured in concert hall raid; Islamic State group claims responsibility

Assailants burst into a concert hall in Moscow on Friday and sprayed the crowd with gunfire, killing over 60 people, injuring more than 100.

6 days ago

Photo: Britain's Kate, Duchess of Cambridge visits 282 (East Ham) Squadron, RAF Air Cadets, Cornwel...

Associated Press

Kate Middleton announces she has cancer, is undergoing chemotherapy

Kate Middleton, Princess of Wales, says she is undergoing chemotherapy to treat cancer. She has been out of view since Christmas.

6 days ago

Year after ‘Crypto Bowl,’ crypto ads vanish from big game