Is exchange Crypto.com under threat of bankruptcy?
The popular exchange Crypto.com may soon begin battling a bankruptcy after reports that it is scaling back most of its trading. According to a report, the exchange has been renegotiating trading and sponsorship terms while laying off employees due to the bearish nature of the market. In a statement to reporters, it claims the company has scaled back its sponsorships in the sports sector. Some of the deals affected include the FIFA World Cup, Los Angeles Angels clubs, and an eSports team.
Sponsorship deals may be at risk
According to the full report, Crypto.com were said to have been ready to completely go back on their deal before a compromise was reached. The reporter, Asa Hiken, listed her unnamed source, some of the company’s previous and present employees. In her report, she claimed that most of them mentioned that the company has been battling financial woes following the market crash that started in May.
Hiken noted that the exchange was making waves when it was up, and now, things are not as rosy as they used to be anymore. The LA Angels’ lawyers claimed that the firm went back on the deal they had earlier signed in December 2021. Aside from that, Crypto.com has an agreement with the eSports team to cancel their contract after the end of this year.
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Crypto.com laid off more than 30% of its workforce in August
The report claimed that it would no longer be able to provide the complete hospitality package it signed with FIFA. Over the last few months, the company has made waves in the crypto market. Aside from signing a deal worth $700 million to rename the Staples Center, it also hired Matt Damon as the lead actor in its advertisement. However, there are claims that Crypto.com has continued to renovate the Staples Center.
Last month, the fork pulled out a $500 million deal with the Union of the European football association. This latest report suggests that much of the company’s sponsorship with other companies may now be at risk. The report also claims that the company laid off more than 30 percent of its workforce in August. This comes after the company’s CEO said they plan to cut only 5 percent of their workforce. However, the company has been doing well in terms of services, as it is now licensed to provide services in several countries.
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