Popular exchange Crypto.com might soon start to fight the onset of bankruptcy following a report that it is downsizing most of its deals. According to a report, the exchange has been renegotiating terms of deals and sponsorships amid axing employees due to the bearish nature of the market. In a statement by a reporter, it claimed that the company had reduced the scale of its sponsorships across the sporting sector. Some of the deals affected were the FIFA World Cup, LA Angels clubs, and an eSports team.
Sponsorship deals may be in jeopardy
According to the full report, Crypto.com were said to have been ready to completely go back on their deal before a compromise was reached. The reporter, Asa Hiken, listed her unnamed source, some of the company’s previous and present employees. In her report, she claimed that most of them mentioned that the company has been battling financial woes following the market crash that started in May.
Hiken noted that the exchange was making waves when it was up, and now, things are not as rosy as they used to be anymore. The LA Angels’ lawyers claimed that the firm went back on the deal they had earlier signed in December 2021. Aside from that, Crypto.com has an agreement with the eSports team to cancel their contract after the end of this year.
Crypto.com cut more than 30% of staff in August
The report claimed that it would no longer be able to provide the complete hospitality package it signed with FIFA. Over the last few months, the company has made waves in the crypto market. Aside from signing a deal worth $700 million to rename the Staples Center, it also hired Matt Damon as the lead actor in its advertisement. However, there are claims that Crypto.com has continued to renovate the Staples Center.
Last month, the fork pulled out a $500 million deal with the Union of the European football association. This latest report indicates that most of the company’s sponsorship with other firms may now run the risk of being in jeopardy. The report also claimed that the company cut more than 30% of its employees in August. This was after the firm’s CEO said they planned to cut only 5% of its staff. However, the firm has been doing pretty well on the service front, as it has now been awarded licenses in a few countries to offer its services.
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