Crypto.com coin rallies after the company buys the naming rights to the Staples Center
Crypto.com, a cryptocurrency trading platform, secured a 20-year contract deal worth $700 million with the Anschutz Entertainment Group (AEG) to buy the naming rights to the Staples Center in Los Angeles, home to the Los Angeles Lakers.
The name change will take effect on Christmas Day, when the Lakers host the Brooklyn Nets.
After the deal was announced Tuesday night, Crypto.com's coin, called CRO, rallied. It's up over 24% in 24 hours and has cracked the top 20 cryptocurrencies by market value. CRO is now ranked No. 18, according to CoinGecko.
Crypto.com has seen substantial growth in a relatively short period. The platform launched in 2016 and surpassed 1 million users in September 2019. It now boasts more than 10 million users.
CRO launched at the end of 2018, and the approximate return on investment if purchased at the time of launch is over 2,500%, according to CoinMarketCap. But remember: Financial experts view cryptocurrencies as volatile, risky investments. As quickly as one reaches a new high, it could go back down.
Nonetheless, this deal with AEG may lead to additional market share for Crypto.com in the cryptocurrency space, as it will now be associated with the Lakers, one of the NBA's top brands.
And in addition to being one of the biggest naming rights agreements in sports, the deal also offers Crypto.com mainstream brand awareness.
"This partnership is about the future," said Dan Beckerman, president and CEO of AEG.
"AEG and Crypto.com not only share a vision about innovation and the future of sports and entertainment, but we also have a shared commitment to our communities where we work and live. We look forward to partnering with Crypto.com to create meaningful initiatives to bring that vision to life in the years to come."
As of 12:43 p.m. EST on Wednesday, CRO is currently trading at around 52 cents, with a market value of over $12 billion.
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