Staples Center to Be Renamed Crypto.com Arena After Christmas Day
Cryptocurrency takes center stage in a new deal.
- The Crypto.com deal includes naming rights to the Staples Center as well as partnerships with the Los Angeles Lakers and the LA Kings.
- The CRO coin jumped 25% on the news.
- Investors still need to be cautious as cryptocurrencies can be high-risk investments.
The iconic venue that's hosted everything from Grammy Award ceremonies to NBA All-Star Games and countless concerts and public events will have a new name next month. After Dec. 25 -- and for the next 20 years -- the Staples Center will be known as the Crypto.com Arena.
Crypto.com is a popular cryptocurrency exchange with over 10 million users around the world. It recently embarked on a huge global marketing campaign, including a series of high profile advertisements starring actor Matt Damon.
The platform's utility token, Crypto.com coin (CRO), has jumped 25% in the past 24 hours and is up over 180% in the past 30 days according to CoinGecko data. This increase comes in spite of an overall downturn -- the overall crypto market cap has fallen 10% in the past two weeks.
Crypto.com and the Staples Center
The well-known sports and entertainment venue opened in 1999 and is owned and operated by AEG. The companies have been tight-lipped about exact details of the deal, but the Wall Street Journal reported that Crypto.com would pay about $700 million for the rights.
The Staples Center is home to the NBA's Los Angeles Lakers and the NHL's LA Kings. As part of the agreement, Crypto.com will become an official partner to both teams. Crypto.com already has partnerships with Formula 1, UFC, the Philadelphia 76ers, and European soccer teams.
The new logo and branding will be unwrapped on Christmas day when the Los Angeles Lakers host the Brooklyn Nets at what will then be the Crypto.com Arena.
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What does the name change mean for crypto investors?
This recent deal is part of a growing effort on the part of cryptocurrency apps and exchanges to put themselves at the forefront of people's minds. FTX was one of the first crypto platforms to sponsor a professional U.S. sports arena in March when it took the naming rights to the NBA team Miami Heat's stadium.
In October, Coinbase agreed to a sponsorship deal with the NBA that includes WNBA, NBA G League, and USA Basketball branding. And Gemini, the platform created by the Winklevoss twins, sponsored this year's Oxford versus Cambridge University Boat Race in the U.K. -- perhaps unsurprisingly given the Winklevoss's Olympic rowing pedigree.
In part, these big deals reflect the huge injection of cash the industry's received in the past year. The overall crypto market cap has grown from around $770 billion at the beginning of January to $2.6 trillion today.
It also reflects increased adoption and understanding of digital currencies. Over 14% of Americans already own cryptocurrencies, and many more are considering getting into the crypto game.
For investors, increased promotion of cryptocurrency exchanges and cryptocurrencies is almost certainly a good thing. The only danger is that new investors jump in without understanding the high risks of what can be extremely volatile investments. It is still a new and relatively untested industry, and we don't know what impact things like increased regulation will have.
Blockchain technology has huge potential, but -- as with any investment -- it is important to research carefully, understand the risks as well as the rewards, and only invest money you can afford to lose. That way you can join the growing crypto community and explore this new technology without getting too burned if things go wrong.
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Emma Newbery owns Crypto.com coin.