Crypto.com Has Cut Staff and Has Battled to Show its Ads
The crypto exchange Crypto.com has long had advertising on its mind. The company acquired the naming rights to the Los Angeles Staples Arena in 2021. It kept the name on the home of the LA Lakers, Kings, and Clippers throughout the turmoil of the crypto industry, but it’s still struggled to maintain its innocence compared to the likes of Terra or FTX.
During last year’s superbowl, Crypto.com released its infamous ad sporting Matt Damon claiming that “history is filled with ‘almosts’” and that “fortune favors the bold.” Damon has since been well-mocked for that speech. That commercial is no longer available on Crypto.com’s YouTube page. There’s also the spot ad with Lebron James telling a younger version of himself “Am I ready?”
And Crypto.com is still struggling, advertising-wise. Last December, the UK Advertising Standards Authority banned a Facebook ad for a Crypto.com NFT, saying it did not reveal the risks of investing in NFTs. It’s a similar situation to January 2022, when the same agency banned two more of the company’s ads similarly saying they were banking on users “inexperience or credulity” without notifying users that crypto investments aren’t regulated by the British government.
In June last year, the company cut 260 staff members, about 5% of their crypto firm. Then last month, Crypto.com announced it wasslashing its workforce again by 20% due in part to the fallout from FTX. CEO Kris Marszalek wrote that his company “grew ambitiously” at the start of 2022, the latter parts of the year saw a much more negative trajectory. Despite claims it had a strong balance sheet Marszalek said “we’ve had to navigate ongoing economic headwinds and unforeseeable industry events.”
Beyond internal struggles, Crypto.com has tried to ensure users its reserves are backed 100%, according to a so-called “proof-of-reserves” audit conducted late last year. Unfortunately for Crypto.com, Mazars—the company conducting that audit—broke all agreements with crypto companies after being criticized for conducting such limited investigations of the companies’ finances.
