Cryptocurrency exchange platform Crypto.com is currently collapsing, according to the latest reports. After spending millions on a Super Bowl ad, the exchange gained 50 million registered users and ranked as a top 10 cryptocurrency exchange by February 2022. However, the fame seems to have been short-lived.
The popular “Fortune Favors the Brave” commercial starring Oscar-winner Matt Damon, soon became a laughing stock due to the irony in the concept. While the ad compared Crypto.com’s token with early space travel, sea adventures from the 18th century, and the Wright brother’s first flight, the script was so ironic that South Park made a parody episode out of it.
Another telling sign of corporate trouble is lay-offs, and Crypto.com had 2000+ of them to speak for itself. According to Ad Age, the crypto exchange had about 5000 employees but the number was reduced significantly over time due to layoffs.
Apart from the Super Bowl ad where the company invested a massive amount of money, Crypto.com spent $700 million across 20 years to acquire the naming rights for the Los Angeles Lakers stadium.
Ironically, this move wasn’t welcome by the community as one Los Angeles Lakers player even stated that the new name sounds “weird” since the venue has always been called Staples Center and viewed as a heritage among fans.
Moreover, Crypto.com slashed sponsorship funds allocated to Twitch e-sport streams, as well as, disbursed money on a sponsorship deal with the soccer team, Angel FC before eventually backing out.
In addition, Crypto.com team members, partners, and executives sold unaccounted CROs worth millions including $26 million worth of CRO’s predecessor token, MCO, through a traditional ICO in 2017. The CRO that traded for $0.98 in November of 2021, now values at $0.11 today.
The last straw however behind the company’s complete collapse is its suspicious ties with fraudulent companies like Wirecard which filed for insolvency in June 2020 and is reputed in Germany as a fraud. Crypto.com’s CEO, Kris Marszalek himself was part of the collapsed publicly listed company, Ensogo, in Australia.
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Source: Cryptocurrency - investing.com
