© Marta Lavandier (AP) The FTX Arena logo is seen on the court of the Miami Heat on Nov. 12, 2022 in Miami.How the mighty have fallen. Cryptocurrency companies made a big splash during Super Bowl 2022 with announcements ranging from newcomers to the biggest on the advertising scene: FTX, Coinbase, Crypto.com, and eToro. Some marketers have nicknamed it “Cryptoball”.
A year later, the industry was humbled by a massive drop in cryptocurrency prices, as well as the bankruptcy of several prominent companies. The turnaround began in 2000, when online companies like Pets.com ran Super Bowl ads, only to shut down after a year or two.
Mark Evans, executive vice president of ad sales at Fox Sports, said cryptocurrency companies had "zero representation" this year.
Here are the cryptocurrency companies that were announced at last year's Super Bowl and where they are now:
FTX: Bankrupt
Cryptocurrency exchange FTX was one of the biggest advertisers in last year's Super Bowl with an ad featuring famous comedian Larry David. Although FTX was the second or third largest crypto exchange in the world at the time, there was no significant business in the US.
Within 10 months of the Super Bowl, FTX went bankrupt. The Bahamas-based company collapsed after investors began withdrawing their deposits due to concerns about the company's balance sheet. On November 11, the company filed for Chapter 11 bankruptcy protection.
The founder and CEO of FTX, Sam Bankman-Fried, was arrested and charged with a multi-billion dollar customer fraud. He will appear in court in October.
David was named along with other celebrities, including football star Tom Brady and basketball star Stephen Curry, in a lawsuit that claimed their celebrity status made them guilty of promoting the company's failed business model.
Crypto.com: Humble
While Crypto.com is still up and running, the company's health is far less healthy than it has been in years past.
The Singapore-based company announced in January that it would cut 20% of its workforce in addition to layoffs through the end of 2022. The company also revealed that most of its assets are tied to low-quality cryptocurrency coins such as the Shiba Inu coin.
Like FTX, Crypto.com tried to make a name for itself through sports sponsorship. The company spent $700 million on the naming rights to the old Staples Center, home to the Los Angeles Lakers. It is now the arena of Crypto.com. The Super Bowl 2022 ad features basketball superstar LeBron James with the tagline, "Fortune favors the brave."
Crypto.com said their layoffs were caused by a "coincidence of negative economic events," but their CEO placed much of the blame on the FTX collapse.
Coinbase: In litigation
Coinbase has one of the weirdest ads, at least at the annual Super Bowl, with a floating QR code that directs users to an event where the company is giving away millions of dollars worth of cryptocurrency. Marketers called it one of the most successful advertising games ever because it surprised and grabbed attention, even though it confused many viewers.
Coinbase's public stock is down more than 70% since last year's play. With digital currencies such as Bitcoin plummeting, trading revenues are shrinking as investors avoid buying cryptocurrency altogether.
The company also announced that it would lay off around 20% of its workforce, with the company's CEO saying that the company is preparing for what it calls a "crypto winter."
In addition, Coinbase has attracted the attention of US regulators. The company had to pay $100 million to settle a New York state investigation into whether it allowed users to register accounts without proper verification. The Securities and Exchange Commission is also looking into whether to ban the practice of "participation" in cryptocurrency, which has been big business for Coinbase in the past.
Etoro: Is there no good news?
The fourth cryptocurrency company to have a Super Bowl ad in the past year is eToro. Israeli company launches "social investment" ad.
Unlike FTX, Coinbase and Crypto.com, eToro has avoided almost all negative news over the past year. The company has expanded its offerings beyond cryptocurrencies to allow users to buy stocks and options, as well as non-fungible tokens, better known as NFTs.
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