Once a foreign subject to most people, the cryptocurrency market has become one of the hottest today. Most people only saw cryptocurrencies as a strange form of currency that was too good to be true – or simply non-existent. While that might have appeared true once upon a time, things have changed; the crypto world has grown massively. This growth is due to the interests different industries took in the market, one of which is the sports industry.
Through sports sponsorship, the sports industry has spread cryptocurrency awareness to billions of people worldwide. Sports fans buy BNB and other cryptocurrencies to engage with their favorite league tournaments.
The crypto space has now experienced a massive growth trajectory as leagues partner with crypto exchanges for big sports sponsorships. This article will consider how sports sponsorship helps cryptocurrency grow and what the future holds for this partnership.
The Influence of Sports Sponsorships on Cryptocurrency Growth
Sports sponsorship is a great avenue for drawing the sports world's attention to the cryptocurrency market. Sports sponsorships link cryptocurrency with gambling and sports betting platforms, one of the ways it has helped it grow.
The crypto world soon realized that the sports industry is a great avenue for big marketing and sponsorship deals. These deals benefit both the sports industry and the cryptocurrency market; it's a win-win situation.
The NBA's sponsorship deal with Coinbase is one of today's most notable and popular sponsorships. The National Basketball Association awarded Coinbase, a public crypto exchange software, as the exclusive crypto sponsor for its games.
This multi-year deal has propelled the exchange platform into the limelight, creating an avenue for the platform to publicize cryptocurrency more. The NBA's deal with Coinbase is geared towards increasing awareness around blockchain, thus growing the crypto economy.
Furthermore, the cryptocurrency market revealed its partnership with Oracle Red Bull Racing, which is its marketing strategy with ByBit. This multi-million dollar partnership is designed to last several years and is aimed at placing cryptocurrency in the heart of the sport.
The latest sponsorship deal yet to be announced is that of Crypto.com becoming the 2022 FIFA World Cup's official sponsor. Through these sponsorship deals, crypto exchange platforms will appear in world tournaments viewed by millions, and cryptocurrency will cease to be a myth.
How Do Crypto Projects Support and Benefit the Sports Industry?
As sports leagues, franchises, and athletes begin investing in cryptocurrency adoption, they'll realize immense value. In exchange for propelling the crypto space into the limelight, the sports industry will get to connect with younger audiences.
The move to involve younger generations in sports has been an elusive and critical demographic for the industry. Below are ways to create crypto projects to benefit the sports industry and what the crypto world gets in return.
- Crypto Brands Get to Meet People Where They Are
Crypto firms spent over $3 billion on sports sponsorships in 2021 alone, aiming to grow awareness through the massive reach of sports. A valid sports sponsorship example is Coinbase's deal with the NBA, which has enabled the cryptocurrency brand to meet people where they are.
The cryptocurrency industry aims to humanize the seemingly complex blockchain technology to the average person who knows little to nothing about it. Consumers are more likely to try a brand (cryptocurrency, in this case) endorsed by a beloved athlete.
- The Sports Industry Gets More GenZers Involved
The cryptocurrency industry isn't the only one benefiting from this crypto-sports partnership; the sports industry is also. Through crypto projects, major sports leagues can attract younger viewers, crypto enthusiasts, social media users, and avid gamers.
In the past, less than 25% of Gen Z was interested or passionate about sports, which is bad news for the industry. That is particularly because attracting young viewers is critical to major and minor sports leagues.
There's no doubt that GenZers are the future; 94% of crypto traders are GenZers and Millenials. Thus, sports leagues declare that they are reaching out to the younger generation by associating with cryptocurrency through sponsorships and partnerships. Meanwhile, crypto brands get the opportunity to deliver a larger audience within the demographic digital asset players desire to reach.
Sports leagues and teams have signed crypto-related sponsorship deals, including the NBA and WNBA. The rate at which sports leagues have embraced cryptocurrency sponsorships grows steadily and consistently. Major leagues are carrying out crypto projects, through which the sports and crypto industry benefit significantly. However, as great as they are, sports-crypto sponsorships aren't without criticisms, although that's to be expected.
On the one hand, people criticize cryptocurrency for its unpalatable environmental impacts and risks that hurt small-time traders. On the other hand, other people call out sports teams for contributing to the mania existing around crypto investing. Nevertheless, leagues and franchises vet potential crypto advertisers to ensure each party benefits mutually from the partnership. Besides, these criticisms are simply proof that these crypto-sports partnerships are working; there's a steep but natural learning curve.