During the 2020-2021 crypto bull market, crypto ads became a significant source of revenue for advertisers and influencers alike. Crypto companies spent thousands on ads and industry giants like FTX secured multi-million dollar deals with celebrities and sports teams.
However, the current crypto winter, made worse by the collapse of the major crypto exchange FTX, is having a significant impact on the advertising industry. With cryptocurrency prices dropping, crypto projects have less money to spend on promotion. Moreover, allegations of corporate mismanagement and fraud in FTX made advertisers wary of the potential reputational risk associated with crypto.
Those closely connected to FTX have seen the brunt of the impact. Crypto and finance influencers that promoted FTX are apologizing to their fans for failing to do due diligence. Paid celebrity sponsors could fare even worse. NFL quarterback Tom Brady and NBA star Steph…
