Trading volumes on popular Singapore-based cryptocurrency exchange Crypto.com have fallen about 90% in the 12 months since the company’s “fortune favors the brave” advertisement featuring movie star Matt Damon first aired, according to data from CoinGecko.
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- The crypto exchange recorded US$3.2 billion in seven-day average trading volume on Nov 1, 2021, but that had fallen to US$372 million as of Oct. 30, 2022. Though the ad may have initially given the platform a boost, as it reached a high of US$5.9 billion in early December.
- The ad, which ostensibly encouraged users to invest in cryptocurrency by suggesting they should not miss out on an opportunity to be an early investor, first aired in late October 2021 near the height of that year’s crypto market bull run. It was seen by many at the time as the moment cryptocurrency entered the mainstream.
- However, the crypto market’s capitalization peaked shortly after the ad, reaching a high of about US$3 trillion in early November, but now fluctuates around US$1 trillion. Using the total market cap as a metric, if a user had invested US$1,000 when the ad aired, that would now be worth just US$379.60 as of 11 a.m. Monday in Hong Kong. If they had only invested in Bitcoin, it would be worth US$331.
- Cronos, the native currency of the Crypto.com-operated Cronos Chain reached an all-time high of US$0.96 in the weeks after the ad aired but has since fallen nearly 90% to US$0.11.
- Crypto.com was investing heavily in advertising at that time, paying US$700 million to rename the iconic Staples Center in Los Angeles to Crypto.com Arena for 20 years in November 2021. It ran another ad featuring basketball star LeBron James that aired during the February 2022 NFL Super Bowl.
- The slump in crypto fortunes had since turned the Damon ad into a subject of parody by the likes of the adult cartoon series South Park and the Late Show with Stephen Colbert.
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