Crypto.com’s currency, CRO token, surged almost 70% in the wake of the platform’s naming rights deal for AEG’s Staples Center, according to a new report.
The 20-year deal with the Singapore-based cryptocurrency company is reportedly worth US$700 million (€622m), with all of the 20,000-cap venue’s external signage to be replaced by June 2022.
However, Forbes reports the coin’s value has risen 69.9% since last week’s announcement that the 20,000-cap Los Angeles venue is to be renamed the Crypto.com Arena from 25 December following an agreement brokered by AEG Global Partnerships. The news prompted Meltem Demirors, chief strategy officer at CoinShares International, to say the deal had already paid for itself more than a dozen times.
The deal paid for itself – 13x over
“Crypto.com put $700M into a 20 year sponsorship, and the resulting PR doubled its token price and led to a $9B run-up in market cap the deal paid for itself –13x over,” she tweeted, “difficult to untangle token distribution and who benefited, but smart token marketing strategy!”
The new relationship will result in the first name change in the venue’s 22-year history and will also see Crypto.com featured prominently across the venue with large-scale, premium branding and signage.
“We’re very excited about partnering with AEG and investing long term in this city, starting with Crypto.com Arena in the heart of downtown, and using our platform in new and creative ways so that cryptocurrency can power the future of world class sports, entertainment and technology for fans in LA and around the world,” said Crypto.com co-founder and CEO, Kris Marszalek.
Opening its doors in 1999, the downtown Los Angeles arena is home to the NBA’s LA Lakers and LA Clippers and the NHL’s LA Kings and LA Sparks and hosts over 240 major high-profile events a year, including 19 of the last 21 Grammy Awards shows. Upcoming concerts include Enrique Iglesias & Ricky Martin, Bad Bunny, Justin Bieber, Imagine Dragons and the Bud Light Super Bowl Music Fest series.
Earlier this year, Crypto.com became the first crypto platform to partner with an F1 team (Aston Martin), the first to partner with an NHL team (Montreal Canadiens), and the first to partner with a professional sports league (Lega Serie A).
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