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Amid bear market, FTX exchange backs out of several sports deals

Amid bear market, FTX exchange backs out of several sports deals

The expenditure downturn comes after the crypto exchange had splurged on sponsorship deals in 2021 in an attempt to entice sports fans

Amid bear market, FTX exchange backs out of several sports deals Amid bear market, FTX exchange backs out of several sports deals

FTX crypto exchange had signed billions of dollars' worth of deals in the recent past with the NBA, the MLB, and several other sporting leagues only to back out of them in light of the recent crypto crash.

The crypto exchange has withdrawn from talks to offer a jersey patch to the Major League Baseball's (MLB) Los Angeles Angels.

The expenditure downturn comes after the crypto exchange had splurged on sponsorship deals in 2021 in an attempt to entice sports fans, many of whom were flush with cash in a tight job market following hefty government assistance from the pandemic.

FTX had paid $135 million to rename the Miami Heat's home stadium after itself in March 2021. 

The top crypto exchange also paid an undisclosed amount to become the MLB's "official cryptocurrency exchange." 

In addition, the exchange spent $20 million on a commercial featuring Tom Brady, the famed sportsman, and his supermodel wife, Gisele Bündchen. They paid $6.5 million for a Super Bowl advertisement starring Larry David, in addition to many other sponsorships.

Unlike several other cryptocurrency exchanges like Crypto.com, Coinbase, Rain Financial, BitMex and others, FTX has not made any layoffs as a result of the present slump but it seems like the exchange is trying to cut costs via different means.

In a tweet sent immediately after Coinbase and Crypto.com announced layoffs, Changpeng Zhao, the CEO of Binance, the world's largest cryptocurrency exchange in terms of trading volumes, appeared to poke fun at his competitors for spending much on sports deals.

He hinted that by avoiding such frivolous spending, the exchange is still retaining its employees and hiring new people as well.

The tweet read,