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I wrote this article barely a month ago and look just how dated it had been!
For some context, I noticed how everyone else in the crypto world was suffering from either the contagion caused by the Luna / Terra meltdown or the general bear market engulfing the system.
Little did I know that disaster would strike FTX. and further decimate the markets.
I will share my thoughts about SBF and FTX in another article, but this is raelly to highlight just how disturbingly fast the crypto world moves and how even supposed angels can fall from the skies and burn up all our trust and hope in an instant.
I am certain of 2 things.
The markets will continue to bleed for a little while longer and yet crypto will endure.
The rest is up to our trust in the system and our optimism.
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<This was an older article I wrote weeks ago prior to FTX’s disaster>
FTX is like the only person left at the buffet line, and they have a huge appetite.
Yes the markets are red, still.
And the air raid sirens hasn’t stopped.
The bloodbath continues and crypto has taken a beating in 2022.
Every major web3 and crypto company has been affected negatively.
Cutting costs, firing employees, reduction in benefits, brutal layoffs, CEOs stepping down and going bankrupt overnight.
Except for FTX.
They seem to be on a roll here.
Let’s see what they have been up to in just the last year.
FTX made $1B in revenue in 2021.
FTX has 1.2M registered users (although it pales to Coinbase’s 100M users).
FTX continues hiring despite every other company firing.
FTX bided $1.422B for Voyager Digital’s assets and won, although they are only paying $51M in cash (what a deal!).
FTX purchased the naming rights to the NBA’s Miami Heat arena for $135M back in 2021.
FTX and VISA are partnering to launch a crypto debit card in 40 countries.
FTX is raising $1B in funding, which hasn’t been disclosed yet.
FTX is probably the only company in this horrible bear market, going on a shopping spree, buying up distressed assets and its competitors.
Its like they are the only ones left at the buffet line and everyone else has either tapped out or gone home.
Why do they have seemingly infinite cash to buy stuff when others no longer have any form of liquidity and purchasing power?
Perhaps they manage their risks much better than everyone else.
Perhaps they made the right moves prior to the market crash and were more prudent than greedy.
Or maybe it was just that everyone else was drunk at the wheel and they chose to remain sober.
Either way, it is amazing that they have all the liquidity and power they need to go around shopping and further expanding their pie.
But it does seem a little too good to be true.
Did anyone really looked closer into their books or did we not bother?
I read an interview with Sam Bankman-Fried recently and Sam said buying rights to stadiums was far more worth it than all other forms of marketing.
The quote that caught my eye was:
“Ask a thousand people how they heard of FTX, and it’s usually one of four ways: our Super Bowl commercial, the FTX Arena, our sponsorship of Major League Baseball’s umpire uniforms, and Tom Brady. Those have moved the needle, and I want to do more things like that.”
What a fascinating insight.
Of all the millions spent on paid advertisements, endorsements, online branding and more, stadium naming rights was by far the most effective overall.
That shows that physical, out-of-home advertising still rocks in today’s world.
If you place it strategically.
Who would have know eh?
That the best form of advertising, to get to people’s head, is actually to be physically in front of them.
Prime placement of advertisements still works, even for digital products like FTX and crypto.
I have always wondered why and who will be crazy enough to pay hundreds of millions just to name a stadium for a few years and if there were any actual returns to the investment.
Now I know.
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Will FTX beat Coinbase in 2023?
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#startups #business #startupx #growth #success #socialmedia #culture #entrepreneurship #strategy #eth #btc #crypto #ftx #sambankmanfried #bearmarket #NFT #exchange #coinbase #crypto #advertisement
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