The 25th day of December 2021 was remarkable in the world of cryptocurrency as it saw Crypto.com, a crypto-trading platform, pay over $700 million for the right to be a stadium’s official name. On that day, The Staples Center, a building in downtown Los Angeles and home venue of the Lakers and Clippers for 22 years, changed its name to Crypto.com Arena in a deal believed to be the biggest venue naming rights deal ever.
What is Crypto.com?
As the name implies, Crypto.com is a crypto-trading platform that facilitates the buying and selling of cryptocurrencies online. The company which has over 10 million online users and 3,000 employees has been in operation since 2016.
Why did Crypto.com acquire the naming rights to Staples Center?
According to co-founder Kris Marszalek, buying the naming rights to Staples center is a very big marketing move for Crypto.com. He believes that the partnership places the Crypto.com brand at the center of some of the biggest sports and live entertainment moments set to happen in the nearest future. One of the company’s goals is to become a top-20 brand in the next 4 or 5 years, alongside names like Nike or Apple. So, acquiring the rights to be a stadium’s name seems like a very smart way to go about hitting that target.
Apart from the name change, Crypto.com and AEG, the owner and operator of the arena, are looking to integrate cryptocurrency payments into the arena and online purchases may be on the horizon. An innovative idea that will provide crypto-centric experiences for both sports and music fans.
Is this a risky venture for Crypto.com?
Considering the volatile nature of cryptocurrencies, you may be wondering if it was smart for Crypto.com to venture into such a deal. Well, this is not the first time a crypto-based financial institution is collaborating with a major player in the sports industry. In October 2020, the NBA went into partnership with Dapper Labs, a Canadian crypto firm, to create a collection of NFTS called NBA Top Shot. Within 5 months, the Top Shot market grew tremendously and made up to $230 million in sales. A huge success.