Cryptocurrency mixing with Sport: Is it a good sign?

[Olamidetechie]

I really enjoy the news I've been getting lately about most popular CEXs having partnerships with sports, from football down to motorcycle racing. However, one concern I have is how much most of these deals involve. Because these CEXs don't just partner with small sports, Bitget, for example, recently announced a partnership with MotoGP, and the same thing with Binance having a partnership with Cristiano Ronaldo, among many more CEXs.
 And if you ask me, these deals are actually producing great results for the CEXs mentioned above, both of them have been ranked as top 1 and top 2 on CoinGecko, and this ranking shows it inlcuding talking about regulatory compliance, the security and transparency and many others, do you think the partnership made all these happen?

[collecttmaster]

I really enjoy the news I've been getting lately about most popular CEXs having partnerships with sports, from football down to motorcycle racing. However, one concern I have is how much most of these deals involve. Because these CEXs don't just partner with small sports, Bitget, for example, recently announced a partnership with MotoGP, and the same thing with Binance having a partnership with Cristiano Ronaldo, among many more CEXs.
 And if you ask me, these deals are actually producing great results for the CEXs mentioned above, both of them have been ranked as top 1 and top 2 on CoinGecko, and this ranking shows it inlcuding talking about regulatory compliance, the security and transparency and many others, do you think the partnership made all these happen?

No, the partnerships are not what made these CEXs so highly positioned. You got the order reverse. CEX are simply money printing machines, it does not matter if market goes up or down they make a lot of money. A lot of people underestimate how much money they make, and are in disbelief about these numbers being true. Since they have a lot of money, they are now doing large partnerships with it. Actually you can say that the CEXs are not supporting crypto enough, because the money that they spend is still very little compared to how much they profit. These partnerships can be good but people need to be careful remember what happened with FTX?

[NeuroticFish]

And if you ask me, these deals are actually producing great results for the CEXs mentioned above, both of them have been ranked as top 1 and top 2 on CoinGecko, and this ranking shows it inlcuding talking about regulatory compliance, the security and transparency and many others, do you think the partnership made all these happen?

It goes in both directions imho, and, for now, as said, it's the opposite.
Keep in mind that we are talking here about legit companies, with legit income, that have to pay tax and, if they spend money on sponsorship it means less tax to pay and some great advertisement in return.
As long as they have money for this kind of deals, it's an investment they make for getting better positioned in the future, when the competition between similar companies will be much more fierce. For now, I think that getting more customers is not so much the result of the costly partnerships.

[nicolas222]

I agree that various CEX try to sponsor various sports teams just to get out of taxes

[collecttmaster]

I agree that various CEX try to sponsor various sports teams just to get out of taxes

You can't say that for sure, we are just speculating why they could be doing this.

It goes in both directions imho, and, for now, as said, it's the opposite.
Keep in mind that we are talking here about legit companies, with legit income, that have to pay tax and, if they spend money on sponsorship it means less tax to pay and some great advertisement in return.
As long as they have money for this kind of deals, it's an investment they make for getting better positioned in the future, when the competition between similar companies will be much more fierce. For now, I think that getting more customers is not so much the result of the costly partnerships.

Good points, in any case this is much better for them than to pay tax. They get no benefits from paying taxes and neither does crypto, so this was both the CEX and crypto are benefiting.

[Japinat]

This feels more like an advertisement than a move to get out of taxes. Sports have millions of fans, so having their company name seen in the arena or promoted by popular players can really help them grow. You know how tough the competition is, so even if exchanges are already popular, they can’t just relax. They still need to run solid advertising, and this is one of those moves.

[uneng]

These companies are trying to get recognization by promoting their brands through sports' championships and clubs. I see nothing wrong with this. We are just shifting from an era where most brands were related to home appliances, banks and food to services related to technology, such as crypto exchanges. The only worrying aspect I see is related to the massive number of gambling services being promoted through sports without clear information and transparency about the services, what can potentially lead many people to adopt gambling for the wrong reasons, while having wrong expectations regards it.

[Odusko]

I agree that various CEX try to sponsor various sports teams just to get out of taxes

Mentioning taxes as the basic reason why Centralized exchanges sponsored teams in the sport tournament can be somewhat out of place if you don't give a clear explanation into why that be, I have seen a lot of the casinos like BC games and stake on alot of place in the last concluded football season, and I know that Aside from their community support to the team their are also generating traffics and even pay higher tax if the inflow becomes significantly noticed by the regulators, but then the sole aim for such sponsorship is not to gain tax but to gain more visibility and ground as a licensed enterprise.

[Bournesparks]

I really enjoy the news I've been getting lately about most popular CEXs having partnerships with sports, from football down to motorcycle racing. However, one concern I have is how much most of these deals involve. Because these CEXs don't just partner with small sports, Bitget, for example, recently announced a partnership with MotoGP, and the same thing with Binance having a partnership with Cristiano Ronaldo, among many more CEXs.
 And if you ask me, these deals are actually producing great results for the CEXs mentioned above, both of them have been ranked as top 1 and top 2 on CoinGecko, and this ranking shows it inlcuding talking about regulatory compliance, the security and transparency and many others, do you think the partnership made all these happen?

No, the partnerships are not what made these CEXs so highly positioned. You got the order reverse. CEX are simply money printing machines, it does not matter if market goes up or down they make a lot of money. A lot of people underestimate how much money they make, and are in disbelief about these numbers being true. Since they have a lot of money, they are now doing large partnerships with it. Actually you can say that the CEXs are not supporting crypto enough, because the money that they spend is still very little compared to how much they profit. These partnerships can be good but people need to be careful remember what happened with FTX?

Your thesis is based on the motions that Cex are milking and not reinvesting, which I feel isn't correct. Frx was due to greed and these days modern exchanges are checkmating that with verified POR & protection funds, compliance with regulations etc. Take Bitget for example, asides their recent partnership with MotoGP for specifi racing events in 2025,   they've got the largest if not one of the largest BTC reserves for exchanges that's verifiable via onchain data.. that's intentionality and trying to secure users funds imo.

[Olamidetechie]

I agree that various CEX try to sponsor various sports teams just to get out of taxes

I don't think that is actually the reason because if there were to be that, alot of exchanges would have started following the same patterns and the only the exchanges i see that do most of these are tier 1 exchanges, and it is producing something great for them, more users, more money.