FTX Crash Crash is on the bottom line for crypto advertisers

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During the 2020-2021 cryptocurrency bull market, crypto advertising has become an important source of revenue for advertisers and influencers alike. Crypto companies have spent thousands on advertising, and industry giants like FTX have landed multi-million dollar deals with celebrities and sports teams.

However, the current encryption winter, made worse than a meltdown From the major cryptocurrency exchange FTX, it has a huge impact on the advertising industry. With cryptocurrency prices falling, crypto projects have less money to spend on promotion. Moreover, allegations Corporate mismanagement and fraud At FTX it made advertisers wary of potential reputational risks associated with cryptocurrency.

Those closely associated with FTX have seen the brunt of the impact. Crypto and finance influencers who have promoted FTX are Apologies to their fans for failing to exercise due diligence. Paid celebrity sponsors could be worse off. NFL quarterback Tom Brady and NBA star Steve Curry are now under Investigation For their sponsorship paid with FTX. Meanwhile, Miami is trying to get out $135 million, 19-year deal With the bankrupt exchange of naming rights to FTX Arena.

The impact on advertising is broader than that, to the point where it affects Google revenue. Google gets bone of its earnings from advertising, and revenue growth in the third quarter fell to just 6%. Moreover, Google’s video-sharing platform, YouTube, has seen its ad revenue shrink compared to last year. Google executives said that fewer crypto ads were partly responsible for the slowdown in revenue.

“There is still a great deal of value” in the space

The cryptocurrency crash demonstrated the complexities of navigating digital advertising in a volatile industry. but, Matvey DyadkovCEO of Bitmedia.ioHe says there are still great opportunities in crypto advertising.

“Crypto and blockchain technology will not go away.” Dyadkov told the Daily Queen. “Decentralized projects will create a lot of value, and investors will want to be a part of that.” he added.

Bitmedia.io has helped companies navigate the complex regulatory and technical environment for crypto ads since 2014. Dyadkov says the current landscape is far from the most challenging he’s ever faced for crypto ads.

Companies like Google and Meta used to refuse any kind of crypto ads. Since then, things have changed dramatically. “We continue to expect more institutional adoption, as well as deepening integration between cryptocurrency and traditional industries.” Dyadkov said.

However, the recent collapse of FTX presents a new set of challenges for advertisers and crypto companies alike.

The FTX fallout has demonstrated the importance of PR and reputation management for crypto projects. It is to explain. In response to the changing circumstances, Bitmedia has started offering content writing and PR services to crypto projects.

“Public scrutiny of crypto projects and advertising practices is essential. Crypto projects must respond with greater transparency and more communication,” concluded Dyadkov.

Advertising is an essential tool for crypto projects to reach the audience they need. It is also essential to onboarding new cryptocurrency users.



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