It’s remarkable how much can change in a year. Just last year, the Super Bowl airwaves were filled with big-budget ads from cryptocurrency exchanges and products, some even featuring glitzy celebrity endorsements. But this year, things were much different.
Mark Evans, the executive vice president of ad sales for Fox Sports, confirmed that there was not one single crypto ad during the big game. Instead, viewers were greeted with a barrage of beer ads.
Adding insult to injury, two cryptocurrency advertisers had already invested in and produced ads for the Super Bowl 2023, with two closer behind. Sadly, their plans were derailed due to the collapse of FTX, causing their transactions to fall through.
Flashbacks from the past
It was crypto madness in early 2022, and these digital coin companies were determined to make a splash and reel in everyday investors.
With the biggest sporting event of the year, the Super Bowl, in sight, they saw a golden opportunity to get their message across to millions.
So, big players like Coinbase, Crypto.com, eToro, and FTX dropped major cash on a single ad spot during the big game.
Fast forward a few months, and it was all downhill for the crypto market. The collapse of the stablecoin Terra sent shockwaves, bringing down other crypto companies.
And by November, FTX, which made headlines with its Super Bowl ad featuring Larry David, filed for bankruptcy.
Unfortunately, the other crypto companies who made their Super Bowl debut aren’t faring much better. It looks like those million-dollar ads didn’t pay off.
What’s happening now?
Last year, Crypto.com embarked on a daring endeavor, airing a Super Bowl commercial titled “Fortune favors the Brave,” which starred esteemed celebrities LeBron James and Matt Damon.
The advertisement aimed to place the company as a pioneering force in the cryptocurrency landscape.
However, despite the prominence of the advertisement, Crypto.com has faced substantial challenges in maintaining stability.
In June 2022, the company reduced 20% of its employees, followed by an additional round of layoffs the previous month, which affected 20% of its workforce.
Another cryptocurrency exchange, eToro, also made a Super Bowl appearance with an advertisement featuring the song “Fly Me to the Moon.”
Despite this ambitious sprint, eToro faced difficulties, laid off 100 employees in July 2022, and even abandoned its initial plans for going public due to “crypto winter.”
Coinbase, the largest cryptocurrency exchange in the United States, also broadcast a Super Bowl commercial, which featured a QR code for receiving free bitcoins.
Although the commercial received mixed reactions, Coinbase faced its hurdles and underwent two separate layoffs in June 2022 and the previous month, impacting 20% of its workforce each time.
The road ahead
It’s safe to say that 2022 was not a banner year for cryptocurrency companies. Despite the hype and promise surrounding this industry, these top companies fell short due to some questionable management practices.
Resources were mismanaged, money was being squandered with little to show in terms of returns, and key decisions ended up costing the companies more in the long run.
Becasue of these financial struggles, the companies were forced to resort to layoffs and take a more conservative approach, even opting out of high-profile Super Bowl commercials.
As we progress deeper into 2023, it’s clear that these companies will need to get creative and develop innovative strategies if they hope to make up for their losses and get back on track.
