Instead of buying a Super Bowl advert like FTX and Crypto.com have, Binance had an NBA superstar tell people no longer to pay interest to those ads.
The largest vogue in crypto right now has little to do with Bitcoin or even Bored Apes. It’s cryptocurrency exchanges stockpiling sports partnerships and athlete endorsements.
That’s set to reach fever pitch on February 13 for the duration of the Super Bowl, the most watched television program in the U.S. each year. Both Crypto.com and FTX have lined up movie star sponsors and shelled out thousands and thousands for ad time at some stage in the game.
Binance, though, is sitting this one out. And it is tagged five-time NBA All Star Jimmy Butler to tell people they do not have to play either.
“On February 13, you’re going to hear some of the largest names telling you to get into crypto,” the Miami Heat small announced via a video on Binance’s Twitter account. “But they do not know you or your finances. Only you do. Binance and I are right here to tell you: Trust yourself and, of course, do your own research.”
— Binance (@binance) February 2, 2022
Binance is sitting at the peak of the mountain with cryptocurrency exchange by way of volume, however the maturation of the cryptocurrency space along with concerted ad campaigns has threatened its win streak. Throughout 2021, its top rivals busied themselves with sports activities partnerships and endorsement deals. FTX bought the rights to rename the Miami Heat Arena after itself and signed NFL legend Tom Brady and NBA sharpshooter Steph Curry as brand ambassadors, Crypto.com backed UFC and received the naming rights to the Los Angeles Lakers and Clippers’ arena, and Coinbase plastered its title on NBA flooring, just to identify a few deals.
Binance has mostly prevented adopting the athlete and celebrity endorsement model, though it currently courted Spanish footballer Andrés Iniesta and subsidised the Africa Cup of Nations football tournament.
Thus far, the no-frills strategy has been working. As of the most current numbers, Binance controls 62% of the spot buying and selling volume amongst the top 5 exchanges on CoinMarketCap ranked by way of believed rating (which contains volume, liquidity, cybersecurity measures and size). Its grip on derivatives trading—where U.S.-based Coinbase has been blocked consequently due to regulatory issues—is almost as strong; it controls 58% of the daily buying and selling volume. (Note: Binance owns CoinMarketCap, but the numbers introduced are related to different crypto fact aggregators.)
In November, the sports-centric method of its competitors seemed to be paying off, as Binance’s share of trading volume suffered a dip of 45%.
And the tactic may additionally yet get them a result. The Super Bowl attracted almost 100 million viewers in the U.S. in 2021 and that suffered greatly due to COVID; the variety generally reaches near a hundred and fifty million people. With current surveys suggesting fewer than 20% of Americans have invested in crypto, a Super Bowl ad can get a lot of spectators into the game.
But Binance and Jimmy Butler may not think so if you watch Olympic curling instead.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.