Crypto companies cut advertising budgets by almost 90%

Sensor Tower, a service for creating ecosystems of mobile applications, reported that in the first half of the year, expenses foradvertising for companies such as Coinbase, Gemini Trust, FTX Trading has almost ceased.

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After a surge in sponsorship deals at the end of 2021and the beginning of 2022, a number of crypto companies are experiencing a significant decline in interest and reduction in advertising budgets. Sensor Tower analyst Dennis Yeh noted that it was macroeconomic uncertainty that was the main driver of the grim change.

Crypto spending.com dropped from $40 million in January pre-Superbowl to $2.1 million in May, and Gemini's from $3.8 million to less than $0.5. Coinbase has suspended ad spending after its $31 million "floating QR code" commercial brought the site down with an influx of users. And in June, Coinbase announced it was suspending recruitment and cutting staff by 18%.

"Now the restoration of confidenceconsumers is the most important factor in the existence of the crypto industry. To rehabilitate the image of the stability of investments in crypto assets, a combination of advertising and other types of communication is required. However, when the price of an asset is too low, engagement and new customers tend to be low, too,” said Andrew Frank, vice president and senior analyst at research firm Gartner.

Commissioner of the American regulator Esther PierceHester Peirce warned the cryptocurrency community that a bearish trend in the cryptocurrency market would be good for the industry, but to be mindful of an increase in scammers “in these turbulent times.”

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