SNEAK PEEK
- With the halting of all FTX-related advertisements, the Golden State Warriors’ $10 million sponsorship agreement with the exchange will come to an end.
- With the failed acquisition over the weekend, the Miami Heat of the rival NBA division terminated connections as well.
- Mr. Bankman-crypto Fried’s exchange, FTX, had an $8 billion shortfall due to a run on deposits, which prompted the company to declare bankruptcy.
Golden State Warriors’ $10 million sponsorship deal with the exchange, signed in December 2021, will come to an end with the suspension of all FTX-related promotions.
The multibillion-dollar cryptocurrency exchange filed for Chapter 11 bankruptcy on Friday after a convoluted chain of events that saw several sports franchises sever their ties to FTX over the last week.
They’re taking down the logo from the FTX Arena 😭 pic.twitter.com/4AxUjer31C
— yzy.eth (@LilMoonLambo) November 11, 2022
Rival NBA team Miami Heat severed ties with the unsuccessful transaction over the weekend as well. After renaming its home stadium FTX Arena in June 2021, Miami Heat put an end to a 19-year, $135 million sponsorship relationship.
On social media, rumors have been circulating that the arena’s namesake logo, FTX, is already being taken down. But more people than only the basketball community are turning away from the FTX brand.
On Friday, Mercedes declared that the FTX insignia on its Formula One vehicles would be immediately removed. FURIA, a Brazilian esports organization that had previously signed a sponsorship agreement with FTX, started taking down all of the pertinent brandings earlier this week.
Not every beneficiary of FTX funds has yet made the connection; the North American esports organization Team SoloMid (TSM), for instance, has not yet changed its branding or released a formal statement.
Sam Bankman-Fried, a billionaire in the cryptocurrency sector, went from being the industry’s leader to its villain in less than a week, lost the majority of his wealth, watched his $32 billion company going bankrupt, and was the subject of investigations by the Securities and Exchange Commission and the Justice Department.
A run on deposits left Mr. Bankman-crypto Fried’s exchange, FTX, with an $8 billion shortfall, prompting the company to file for bankruptcy. The empire he had constructed, once compared to financial heavyweights like John Pierpont Morgan and Warren Buffett, came crashing down last week. The harm has extended throughout the sector, bringing down other cryptocurrency businesses and fueling broad skepticism of the technology.
While FTX’s level of spending might seem high, it was by no means out of the ordinary since recent years have seen the crypto world pour enormous sums of money into professional sports.
