Cryptocurrencies have been taking over various fields, which is why sports could not be exempt; large sponsorships have characterized the presence of digital currencies in the different sports teams and disciplines.
From advertising to player salary payments in cryptocurrencies through Meta Profit, it has been observed in the last two years with more significant popularity, which is why it is interesting to evaluate the impact of digital currencies in this bearish stage on this sector that entertains worldwide.
Value of cryptocurrencies in sport
The crypto winter has arrived, and its passage has caused unexpected effects in terms of the capitalization of the sport. It is because there are currently many teams worldwide, among which soccer, basketball, and even formula one stand out.
When crypto investment became fashionable and exchange platforms found a perfect exhibition space in sports, the well-known fan tokens began to be created.
These digital assets are usually the comparison of an action or the portion that a particular user or fan can acquire and, in one way or another, even participate in the critical decisions of the team.
Fan tokens have acquired value just like any other cryptocurrency, only to a lesser extent since their impact on finances is not a concern.
Unlike these instruments, if they are affected by the positive or negative movements of the crypto market.
For example, the digital currency of the FC Barcelona team is currently around four dollars per unit, which is a low price after the fall of cryptocurrencies since it reached a historical maximum of almost 80 dollars.
The current scenario has affected all the parties that make up the crypto market.
Most significant sports sponsorships in cryptocurrencies
It could be said that the sports sponsorship sector, after the entry of cryptocurrencies, became a decentralized finance business, an exciting and attractive aspect for large investors who want to diversify their capital and have found the perfect opportunity in the digital financial market.
So much so that crypto sponsorships consider that the most fertile ground to invest in is sports-related to Formula 1 and MotoGP, to the point that most vehicle templates have at least support from some cryptocurrency company.
Sports sponsorships in conjunction with the various sports categories have allowed teams or teams, depending on the sector in which they invest, to diversify and expand their divisions to obtain more significant benefits from this digital environment.
Some top sponsors include Crypto.com, Socios, FTX, Binance, Tezos, and many more.
What will happen to digital currencies and sports?
The digital financial market has been severely affected so far in 2022 since constant falls have not allowed a healthy recovery for digital assets.
Bitcoin, the leading cryptocurrency in the crypto market, has shown falls ranging from 69,000 dollars per unit, its historical maximum of November 2021, to almost 19,000 dollars.
Some of the established sponsorships, where the image advertising contracts of the exchange platforms are limited because some of these are being suspended and even eliminated due to the downward trend of cryptocurrencies.
Such is the case of the contract being signed between The Washington Wizards and a crypto company that was eliminated when the market began to decline.
Possibly new contracts will not be generated while waiting for the market situation to stabilize and recover the breath of investing in a certain way.
Excessive crypto spending with a future
The outlays by exchange companies through sponsorship contracts during the last bullish phase of Bitcoin, and the other cryptocurrencies were excessive.
At the moment, these decentralized finance companies are entering a period of recession in terms of negotiations with third parties to promote the sport.
For many, it has been a stage of considerable losses. Still, it is known that this type of company benefits in bullish moments and bearish ones.
Many of these companies have signed contracts for up to 20 years; this indicates that the digital financial market is not just a fad or a passing trend; this market is positioned for investors who are thirsty to operate in it.
Conclusion
Cryptocurrencies have diversified investments excitingly; more and more sectors are joining this type of contract in exchange for sponsorship; these companies intend to obtain mutual benefits.
