Crypto.com is a crypto trading platform that has always been successful so far in its marketing campaigns. Unfortunately, the company has encountered financial difficulties since the arrival of the bear market. To limit the damage, the platform decided to lay off employees, reduce its contribution with regard to sponsorship as well as limit its partnerships.
Crypto.com between success and failure
Crypto.com is a company that has enjoyed great moments in the market. So, in November 2021, while the virtual currency market was on the rise, this crypto exchange had around 50 million users.
This has also made it easier for its marketing team to sign as many partnerships as possible in the world of sport.
To cite a few examples, Crypto.com has signed agreements with the NHL, Formula 1, the Italian Serie A, Paris Saint Germain and the UFC. And as the icing on the cake, Crypto.com hit the jackpot by signing an agreement with FIFA for the upcoming World Cup to be held in Qatar.
With all these agreements signed, there is no longer any need to demonstrate that this company has an undeniable hold on the digital asset market. It therefore seemed almost impossible to imagine that this successful company would come up against an obstacle despite the aggressiveness of its marketing strategies.
And yet, it happened. Indeed, the Crypto.com exchange was far from imagining that the next drop in the cryptocurrency market would be fatal to him. Indeed, during this decline in the market, this electronic currency trading platform revised some of its partnership agreements downwards.
At the same time, other partnership agreements such as the one with Angel City FC, the UEFA Champions League and Twitch Rivals have been terminated.
And for good reason, its income on the market decreased considerably as the bear market drives with it the value of the most popular cryptocurrencies falling.
Therefore, to reduce its salary costs, Crypto.com decided to part with a large part of its workforce. Concretely, the company proceeded to lay off 30 to 40% of its employees who had been recruited shortly before this collapse of the crypto market.
Crypto.com: A crypto exchange struggling to survive
Until a few months ago, Crypto.com was seen as one of the most powerful cryptocurrency exchanges. And if this company has come to this, it is because it has adopted an extremely ambitious and sometimes even very aggressive marketing approach.
With this strategy, the company has put in the balance, its many partnerships with major institutions to convince investors. But today, this dynamic has come up against the collapse of the market.
And since then, Crypto.com has been fighting for its survival by reducing some partnerships, terminating others and massively laying off staff.