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Crypto Market Crash Pauses Commercial Deals With Sports Firms

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Crypto Market Crash Pauses Commercial Deals With Sports Firms

The current downtrend of the crypto market has negatively affected financial institutions, particularly those dealing with digital currencies.

Currently, some firms are beginning to feel the heat from a different angle. This involves sponsorship deals between these digital currency companies and sports teams. This is particular to the crypto firms that have already spent hundreds of millions on the matter.

The Crypto Winter Takes Hold

As of 2021, the news reported that many digital currency firms invested billions of dollars in sponsoring sports. These companies had believed that the same would occur in 2022, only to wake up to the dawning of the downturn in the crypto market.

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As the crypto winter takes hold, there have been records of losses for certain digital currency firms. This led them to make some hard decisions, such as trimming costs and staff headcounts. Moreover, companies that ventured into heavy sports deals are seeking ways to sustain their operations. As such, there is a need to cut down costs.

According to the reports, the digital currency exchange, FTX, drew back on the issue of offering a jersey patch for the Los Angeles Angel of MLB. This occurred some weeks back, seeing the tanking of the digital currency market. However, from the news, FTX had shelled out $135 million in March 2020 to rename the Miami Heat’s home.

Sources cited another example of a nixed deal resulting from the crypto market crash. This involved the patch deal between a crypto firm and the NBA’s Washington Wizards. Many crypto companies consider the Washington Wizards patch desirable.

This is because the regulators and politicians who supervise their games are more often in attendance. However, there was no response from the parties (Washington Wizards and FTX).

Past Sponsorships

Going further, Joe Favorito, a professor in charge of sports at the University of Columbia, made a statement about the situation. From his speech, there will be no announcement on sports partnerships or sponsorships until the bulls take over the market.

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Furthermore, it was disclosed that vast amounts of money were poured into sponsorships deals during the last bullish market trend.

Some examples of crypto firms cited were Crypto.com, FTX, and Tezos. For example, sources noted that Crypto.com offered about $700 million to name the Los Angeles Lakers’ home for nearly 20 years. Furthermore, in March 2021, FTX offered $135 million, as stated earlier. This was intended to replace the name of the Miami Heat’s home arena with FTX Arena.

Cryptocurrency market falls by 3% on daily chart | Source: Crypto Total Market Cap on TradingView.com

Moving on to Tezos, the company offered 27 million dollars annually to maintain the Manchester United uniforms logo. However, the current market trend does not change the firm deals between NFT companies and real-world products. This means that there are certain benefits still available to the related parties.

Suggested Reading | Shiba Inu Now The Largest ETH Whales’ Holding Despite Crypto Market Turmoil

An example is Budweiser, a Golden beer manufacturer in partnership with Zed Run, a renowned horse racing platform. Another source example is Tom Brady’s Autograph NFT marketplace in partnership with ESPN. Again, the idea was to develop significant content for the sports television network.

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Featured image from Pexels, chart from TradingView.com

Cryptocurrency news

THORChain Deploys Mainnet After 4-Year Wait, RUNE Soars 13% In 24 Hours

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THORChain Deploys Mainnet After 4-Year Wait, RUNE Soars 13% In 24 Hours

THORChain has been trading in the green and recovering faster than larger cryptocurrencies. The development team behind this project, Nine Realms, announced the launch of their mainnet after 4 years of development and research.

Related Reading | Cosmos (ATOM) Price Swells 12% – Can It Breach Resistance?

At the time of writing, THORChain (RUNE) trades at $2.30 with a 14% and 35% profit in the last 24 hours and 7 days respectively. The market seems to be positively reacting to the announcement.

RUNE with minor gains on the 4-hour chart. Source: RUNEUSDT Tradingview

As part of the announcement, crypto users on the Binance exchange will be able to participate in a promotional campaign and earn part of a total $1 million price. Via an official post, the team behind THORChain said the following celebrating the project’s major milestone:

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Mainnet marks the achievement of a fully functional, feature-rich protocol with a large ecosystem and strong community. It has been a long time coming and the community is very excited about this important milestone.

Before mainnet, THORChain was operating with the Multichain Chaosnet (MCCN) to enable users to provide cross-chain liquidity. This allowed the project to battle-test its features and migrate from a centralized to a decentralized and community-driven platform, according to the official post.

As part of this deployment, the project launched its native token RUNE and has called for all token holders to swap their non-native RUNE for the former asset. Once 67% of the network runs on native RUNE, the protocol will implement a “Killswitch” and “kill” the non-native asset under the BEP2 standard.

As NewsBTC reported, 4 months ago THORChain released a highly expected feature, synthetics assets. This allowed users to gain exposure to the price of large cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), by trading with their THORChain versions called sBTC and sETH.

This was just one of the milestones reached by the project on track to its mainnet launch. The aim is to make the platform a decentralized, secure, and liquidity-efficient protocol in the decentralized finance (DeFi) sector.

Who Is Buying The THORChain (RUNE) Rally?

Data provided by the team behind the project claims THORChain has seen $9.2 billion in total trade volume, with a total of around 10 million transactions and around 72,000 unique swappers. The protocol has around $250 million in total value locked (TVL) making it one of the largest in the DeFi sector.

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In their next step of development, which includes making the platform more transparent and decentralized, the team behind the project said:

Centralised points of failure must be removed as they are a risk to the future of the network. The largest remaining centralised point is Treasury management. Treasury plans to hand over full control to the community soon.

Further data provided by Material Indicators (MI) records an increase in buying pressure from investors with over $1,000 to $10,000 bid orders (red and green on the chart below). Retail investors (yellow on the chart) have been selling into the current price action while whales (brown and purple) have been inactive.

Source: Material Indicators

Related Reading | Top 5 Cryptos Taking A Major Beating In The Ongoing Market Mayhem

If the crypto continues to rebound, RUNE could extend its gain. If large investors see bullish continuation, they might jump into the action and push RUNE into further gains.

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Polygon’s MATIC Surges 27% On Carbon Neutrality News

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Polygon’s MATIC Surges 27% On Carbon Neutrality News

According to CoinMarketCap, the Polygon (MATIC) value was increased by nearly 27% to $0.55 within 24 hours after Polygon’s news of being carbon neutral. However, the coin is still on an upward trend, and as of the time of writing, it was trading at $0.60. 

The price is still below what it was at the beginning of the month when it was trading at $0.66, but considering the market downturn, MATIC’s price gain is sending out a positive vibe. It ranks as the 18th largest cryptocurrency worldwide.

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The value of Polygon (MATIC) increased by roughly 50%% within seven days, as per CoinMarketCap statistics. On the other hand, the leading cryptocurrencies, like Bitcoin and Ethereum, saw a week’s decline. In addition, Having peaked at $2.92 on December 27, 2021, Polygon has since plummeted nearly 80%. Although it is still 50% higher than this month’s low of 0.31 on June 18.

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MATIC was first created on top of the Ethereum Network and is now enhanced with Plasma-based side-chains to guarantee asset security. The main objective of MATIC Network, which calls itself a blockchain-agnostic Layer-2 scaling solution, is to enable scalable, quick, and safe blockchain transactions. 

MATIC is currently trading at around $0.6 on the hourly chart | Source: MATIC/USD price chart from Tradingview.com

The Main Factor Driving Polygon’s Matic Value Upward

Mainly two catalysts appear to be the reason for Polygon’s increasing value. Nevertheless, the most important one is Polygon’s recent announcement that it has retired $400,000 worth of carbon credits, turning the company carbon neutral.

The value of its native token has increased significantly as a result of its achievement of carbon neutrality. Indian crypto exchange WazirX’s Trade Desk also claims that:

Polygon(MATIC), just lately achieved carbon neutrality(a stability between emitting and absorbing carbon). This has led to a surge in MATIC value in the previous couple of days, leaping up by 30%. The hourly pattern for MATIC has damaged out of the ascending triangle sample. The subsequent resistance is predicted at $0.73 degree.

Polygon stated in its blog post that through their partnership with KlimaDAO, it became carbon neutral and further explained that:

In helping to implement the first phase of Polygon’s long-term commitment to sustainability, KlimaDAO, in partnership with Offsetra, analyzed the network’s energy footprint to identify emissions hotspots and develop an effective mitigation strategy.

Then, utilizing the offset aggregator feature of KlimaDAO, Polygon bought tokenized credits valued at $400,000 from the on-chain carbon market.

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In addition, Polygon collaborated with KlimaDAO to retire the carbon credits created by particular projects on its blockchain. The Bull Run Forest Conservation Project is one of those projects.

 Related Reading | Bitcoin Recovery Slows Down As Whale Inflows Remain Elevated

Furthermore, whale accumulation is the second factor that drives MATIC’s price increase, according to Santiment on-chain statistics.

As stated in their tweet on June 22:

$MATIC sharks and whales have been in a pretty big accumulation trend for about six weeks. The tiers of holders ranging from 10k to 10m coins held have collectively added 8.7% more to their bags in this timespan.

                  Featured image from Flickr and chart from TradingView.com
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APE

ApeCoin Shed $2.5 Billion From Its Market Cap In May – Investor Appetite Fading?

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ApeCoin Shed $2.5 Billion From Its Market Cap In May – Investor Appetite Fading?

The month of May’s crypto market disaster did not fail to bring down along with it one of the “rising stars” in the crypto space, ApeCoin.

ApeCoin price has shown a robust performance in the face of the crippling crypto market crash. However, the bulls were still able to lift APE by about 50% higher from the coin’s low at $3.11.

As of this writing, APE was trading at $4.25, up 4.1% in the last seven days, and selling just below the newly established swing high at $4.35.

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ApeCoin Market Cap Down By Half

Thursday’s data from Coingecko indicates that ApeCoin is among the top 50 crypto assets by market capitalization, having closed May with a market value of around $1.27 billion.

As a result of the decline in the value of other digital currencies, this amount appears large, but it reflects a 56 percent decline from its market value. APE’s high trading volume of $3.37 billion as of May 1 translated to a market value in excess of $4.55 billion.

A high volume of liquidation by coin holders rose on May 1 and accelerated from May 9 to 13, contributing significantly to the decrease in APE’s market value.

Experts say this is because of the broader geopolitical and global climate, including uncertainties in the ongoing war in Ukraine, among other factors.

Factors Contributing To APE Price Decline

It’s not just in the crypto field that things are not looking bright. Living expenses are growing, interest rates are rising, a recession is approaching, and inflation is skyrocketing. The US S&P 500 is currently in a bear market, and stock markets are shaky as well.

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APE total market cap at $1.27 billion on the daily chart | Source: TradingView.com

According to a number of market analysts, these are some of the causes chipping away at the value of APE.

On May 1, APE began at $20.02, achieved an intraday high of $20.04, dropped 21 percent to an intraday low of $15.69, and ended at $15.97.

As a result of losing more than one-fifth of its value on the first trading day of the month, APE was unable to recover and continued to fall throughout the rest of May, reaching new lows.

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APE began trading on May 1 at $20.02, achieved a monthly top of $20.04 on the same day, hit a monthly low of $5.25 on May 11, and finished the month at $6.76.

This represents a 66 percent decline between the opening and closing prices of APE in May.

Featured image from Gravitate.news, chart from TradingView.com

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