Here’s how Sports sponsorship is helping to legitimize crypto in Australia
According to Luke Ryan, head of content at Australian crypto exchange CoinJar, sponsorship of high-profile sports and teams may be critical to legitimizing the crypto industry to the general public. By partnering with the Melbourne Demons in May 2021, the crypto exchange became the first company in Australia to sponsor an Australian Football League (AFL) club. AFL partnership changed the conversation in the country and it gives cryptocurrency a greater sense of permanence. Perhaps before this real punch into the sporting mainstream, it was very easy for a lot of people to think ‘oh, this cryptocurrency thing, it’s going to fade away, or it’s already faded away.
Ryan believes that sports partnerships allow cryptocurrency companies to expand their user base and adoption. He stated that one of the factors that drew CoinJar to collaborate with an AFL team was the desire to promote crypto exchange beyond the established true believers who already have their preferred platforms. At some point, you’re all just hacking into the same market. The partnership between CoinJar and the Melbourne Demons has also resulted in other teams and the AFL learning more about cryptocurrency, which Ryan believes has helped to normalize the asset within the organization.
It’s allowed them to ask questions, dig deeper, and say, ‘ah, that’s quite interesting, we could use that to better create a relationship with the fans. The speculative nature of cryptocurrency, is undeniably what has gotten a lot of people into it,” but it isn’t what will make for a sustainable future entity. At some point, there has to be this transition towards actual products that people want to use. In August, the AFL’s first 3,800-strong NFT collection sold out in less than 12 hours, raising an estimated $130,000 or more USD Coin (USDC). The AFL has already stated that it intends to expand its cryptocurrency offering to include game day events, tickets, and the opportunity to meet players in the Metaverse.
The $84.5 million ad spend was achieved during the Super Bowl season in the United States, when Crypto.com, FTX US, and Coinbase splurged on high-profile advertisements to raise awareness of their services. Despite the reported decline in TV advertising spending, some crypto firms, such as Singapore-based digital asset management firm IDEG Limited, say they continue to invest heavily in advertising to maintain brand awareness. The company has been “very conservative” in its crypto investments, allowing them to position itself in a perfect position to take advantage of this current slowdown.
