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- The price slumps One Year After ‘Brave’ Matt Damon Ad
- Crypto.com spent $700 million for naming rights for the Los Angeles
- Damon ad made the rounds in crypto circles for a few months
Regardless of which version of the Latin proverb you choose, Crypto.com’s exchange volume does not appear to be very brave, strong, or bold one year after its Matt Damon commercial was released.
According to CoinGecko, Crypto.com’s normalized exchange volume has decreased by 91% over the past year, from $4 billion to $380 million per day using a 7-day average.
This does not mean that the ad is to blame for the drop in sales; rather, the company’s attempt to boost growth by partnering with an A-list celebrity appears to have had little effect.
FTX is down 77% compared to last year
The bear market, which has caused crypto markets to lose two-thirds of their market capitalization compared to a year ago, is another issue in the room.
However, the reception for Crypto.com’s Matt Damon spot was at best lukewarm prior to the major market decline. Cryptocurrency investors were compared to astronauts, mountain climbers, and the Wright Brothers in the advertisement.
In November, shortly after its release, Crypto.com paid $700 million for the naming rights to the Los Angeles arena that used to be called the Staples Center. At the time, it appeared as though the marketing efforts had boosted the exchange.
In the meantime, the Damon advertisement circulated within the crypto community for a few months before beginning to reach individuals outside of the industry by January of this year.
The responses were not favorable. Even a South Park episode with a parody of pee drinking got in the way of the ad.
According to CoinGecko, the native Cronos token (CRO) of the exchange, which offers discounts on trading fees and other benefits to holders, has a market capitalization of $2.8 billion and was trading at $0.11 on Friday afternoon. These metrics are about half as high as they were a year ago.
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Huobi has lost 90% of its normalized volume
Additionally, Crypto.com has had to end a $495 million sponsorship deal with the European Champions League (EUFA) after going through multiple rounds of layoffs in the past few months.
The company sued a woman the same week the news broke in August for keeping $10 million that it had accidentally sent to her crypto wallet. It stands to reason that the volume of the exchange’s peers has also decreased.
90% of Huobi’s normalized volume has been lost. Coinbase is down 75%, FTX is down 77%, and Binance, which introduced zero-fee trading for Bitcoin and Ethereum this summer, now has 57% less volume than last year.
Bybit’s volume has increased 757 percent compared to late October 2021 as a result of the zero-fee bid to boost it. Over the course of his tenure as CEO of FTX, he has frequently made the point that exchange trading volume can be artificially and dramatically increased by zero fees. On Twitter in the summer, he even referred to it as one of the most consistent historical facts in crypto.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
