The Crypto.com exchange token price doubled after a $700 million investment in the naming rights to the Staples Center. The world was stunned on November 17 when Crypto.com and Anschutz Entertainment Group (AEG) announced a stunning $700 million 20-year deal for the naming rights of the Staples Center in Los Angeles.
We’re extremely proud to announce that Staples Center, Los Angeles’ most iconic arena is getting a new name:
https://t.co/vCNztATkNg Arena
As part of this 20 year partnership, we’re also excited to welcome the @Lakers & @LAKings as our newest partners! pic.twitter.com/KCfYKySDRt
— Crypto.com (@cryptocom) November 17, 2021
Crypto.com exchange token price doubled after a $700 million investment since last week
The Los Angeles Lakers will play the Brooklyn Nets in the NBA’s annual Christmas Day games this December, and Staples Center will be renamed Crypto.com Arena. The agreement between Crypto.com and AEG, the arena’s owner and operator, binds the Singapore cryptocurrency exchange to the famed basketball and hockey teams, the Los Angeles Lakers and Los Angeles Kings.
According to CoinMarketCap, the Crypto.com CRO token price has doubled in value since the announcement, rising from $0.43 on November 17 to $0.76 on November 25.
The Chief Strategy Officer of CoinShares International Ltd, Meltem Demirors, noted on Twitter: “The resulting PR doubled its token price and led to a $9 billion run-up in the market cap”.
What is Crypto.com, and why is CRO its native token so valuable?
Crypto.com is a Singapore-based cryptocurrency exchange that allows users to purchase, sell, borrow, lend, and spend cryptocurrencies using their Visa debit card. They have recently launched their own NFT marketplace where users may buy and sell NFTs.
According to the Crypto.com website, holders of the exchange’s native token, CRO, will benefit from lower costs when buying and selling cryptocurrencies, greater interest rates when lending tokens, lower interest rates when borrowing money, and a bigger cashback on their Visa Card.
According to CoinMarketCap, Crypto.com is the 10th largest cryptocurrency exchange by daily volume ($1.8 billion), while CRO is the 13th largest cryptocurrency by market value ($21.3 billion).
Will the sports business be a catalyst for crypto adoption?
Crypto.com isn’t the only major crypto exchange getting into sports this year; FTX has also struck deals. In June, the exchange became Major League Baseball’s official crypto sponsor, and they also purchased the naming rights to the American Airlines Arena in Miami, rebranding it FTX Arena. According to Forbes, Binance Exchange teamed with the Italian soccer club SS Lazio just last month.
Crypto.com has already partnered with Formula One, the Ultimate Fighting Championship (UFC), the French soccer club Paris Saint-Germain (PSG), and the NBA basketball franchise Philadelphia 76ers.
Cryptocurrencies are becoming more mainstream, and the top cryptocurrency exchanges are partnering with the sports sector to gain access to the billions of global sports enthusiasts. Investors appear to value the drive toward mainstream partnerships, as seen by the rise in the price of the CRO token.
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Also read: Binance CEO: We don’t need to persuade Warren Buffett to invest in crypto
