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- Miami Heat had cut ties with the FTX crypto exchange.
- The company filed for bankruptcy Chapter 11 on 11 November 2022.
- FTT token fell by over 90% in the market value.
FTX Loses Sports Sponsorship
After the largest crypto exchange pulled their leg out of the FTX deal, the company announced via their official Twitter channel that they have filed for Chapter 11 for bankruptcy. According to the Press Release, Alameda Research and additionally 130 affiliated organizations (FTX Group) have gone down in this event. Apart from this, the Miami Heat, one of the top NBA teams, have cut ties with the company.
The team previously signed a 19 year, $135 Million agreement in 2021. After paying $14 Million balloon payment the company was about to pay $5.5 Million more next year. The announcement will end the company’s naming rights, but the arena will technically be addressed as FTX Arena for the next game. The company had to take the step following a sharp fall in their native token, FTT. Sam Bankman-Fried said that they were falling short of $6 Billion for withdrawal requests from the users.
Miami Heat was not the only sports organization with which FTX had signed marketing agreements. The company served as a sponsor to a number of entities in the sports industry including Washington Wizards and Golden State Warriors. Hall of famer, Tom Brady, and Naomi Osaka had also signed a deal with the company in the past.
According to the owner of the largest crypto currency exchange, they entered the game to help FTX from a potential collapse. Previously, they announced that they will sell all their FTT holdings into the market. This created a panic among the investors which then started to sell the asset to avoid a hard blow.
Yesterday, the company’s native token of the exchange was down by 90%. The fall has affected other organizations including Hodlnaut, BlockFi and more. BlockFi, a crypto lending company, announced that they are halting the withdrawals from the network. The organization added that they are taking the step to protect their users from a potential monetary blow.
Hodlnaut, another crypto lending company, said that they had an exposure of over $18 Million on FTX. This event has become the latest entry in the queue of organizations that collapsed during the crypto winter. It all started with the fall of the Terra ecosystem which eventually led to the downfall of Three Arrows Capital, Voyager and Celsius.
Investors finally started to think that they are witnessing the crypto winter fading away. But the fall of one of the most prominent exchanges and its native token has forced them to get back into their dens amid the increasing market fear. The fall of LUNA showed how an event can shake the entire market, and people are just waiting to see what havoc the fall of FTX can cause.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
