Crypto Nowhere To Be Seen On Super Bowl Night

Cryptocurrency companies did not buy any of the expensive Super Bowl ads this year, a break from 2022.

Cryptocurrency companies did not make an appearance in this year’s Super Bowl ads unlike the previous year where they dominated multi-million dollar ads.

Coinbase  (COIN) – Get Free Report, FTX and took the stage in 2022’s Super Bowl ads. But this year they were nowhere to be seen as several of them have either filed for bankruptcy, slashed their budget and reduced their headcount.

The crypto industry fell into a slump after facing a myriad of problems. including the crypto winter, a credit crunch during the summer of 2022 and FTX’s massive collapse.

Last year crypto companies took advantage of the rising interest from people wanting to invest in bitcoin and other coins. Celebrities also endorsed many of these companies, ranging from actor Larry David to Matt Damon.

Crypto companies spent hundreds of millions of dollars — Coinbase,, eToro and all purchased ads during the Super Bowl when the Los Angeles Rams defeated the Cincinnati Bengals at SoFi Stadium in Inglewood, Calif. 

Coinbase, once a popular crypto exchange for investors to buy and sell virtual currencies, attempted to attract new customers by giving them free bitcoin rewards. Their ad featuring a QR code was so successful that the company’s app crashed.

Investors punished the company by fleeing the stock – shares are down by 71.2% year-to-date.


Crypto Winter in 2022

The cryptocurrency market faced severe volatility in 2022, which started when bitcoin, the king of crypto coins, dipped below below the symbolic threshold of $20,000 and the the gobal market cap fell below $1 trillion.

Fear dominated the markets in May, June and July as investors were concerned that the economy could slide into recession as the Federal Reserve aggressively hiked interest rates to fight inflation, which was at its highest in 40 years.

These fears intensified the volatility in the cryptocurrency market. From the beginning, the cryptocurrency market has seen bull runs, even euphoria, often followed by equally strong downward movements. When the dips last for a period of time, the crypto winter settles in.

There have been several episodes since the advent of bitcoin in 2009. But initially the market saw crypto bubbles bursting rather than instances of crypto winter. The cryptocurrency market cap is $1.04 trillion today, according to CoinGecko.

Signs of trouble in the cryptocurrency industry were revealed in 2022 when news emerged that several prominent crypto lenders did not disclose information that they were mostly lending money to the same hedge fund, Three Arrows Capital or 3AC.

The lack of transparency and the difficulties of this hedge fund reverberated in the sector, causing a liquidity crisis: Crypto lenders Voyager Digital and Celsius Network filed for Chapter 11 bankruptcy.

The industry’s lack of transparency also caused investors to panic and simultaneously withdraw their money in sister cryptocurrencies Luna and UST, triggering a devastating domino effect for several players in the sector.

Last August there was a strong correlation of crypto returns with the stock market. This means that investors buying the dip in the stock market could also do so for cryptocurrencies.

FTX’s Massive Downfall

Once revered in the crypto industry, FTX was a major player and created an exchange that allowed investors to invest and trade their digital coins such as bitcoin and ethereum.

But the downfall of FTX and its sister company Alameda Research, which is a crypto hedge fund, impacted the industry as investors and its users faced countless losses. Their founder Sam Bankman-Fried filed for Chapter 11 bankruptcy on Nov. 11. Bankman-Fried was later arrested and now is on house arrest, living with his parents.

John Ray, the new CEO of the platform and the executive in charge of its liquidation, is attempting to recoup some of the losses for investors.

FTX’s collapse occurred because it was using client cryptocurrencies as collateral to borrow money, which in turn it had transferred to Alameda Research, with which it shares several links. Alameda used this money to invest in crypto businesses and also for trading operations.

Ray also received authorization from a federal judge to put an end to a series of endorsements deals and partnerships. These linked the FTX cryptocurrency exchange to entertainment stars, major sports leagues including NBA franchises, and conferences.

FTX will end deals with National Basketball Association star Steph Curry and with supermodel Gisele Bundchen, the ex-wife of National Football League star Tom Brady, according to court documents published on Jan. 26.

Even Binance, the world’s largest cryptocurrency exchange, made a decision that’s linked to the FTX scandal. Although the company once tried to be the savior to FTX, it has faced its own concerns.

The platform temporarily suspended deposits and withdrawals in U.S. dollars through bank accounts.

Investors who want to buy coins like bitcoin, ether, solana, dogecoin and cardano will no longer be able to transfer U.S. dollars from their bank accounts to the platform. Investors who want to sell their coin will not be able to receive U.S. dollars to transfer to their accounts.

Transactions via other fiat currencies, such as euros and the British pound, are not affected.

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