Crypto.com’s “marketing meltdown” has resulted in payments owed to NWSL’s Angel City FC

The GIST: Sports organizations are still feeling the chill of crypto winter. According to a report, Crypto.com’s “marketing meltdown” in recent months has resulted in the digital currency exchange backing out of high-profile deals and owing payments to partners, including the NWSL’s Angel City FC. Major yikes.

The details: After becoming a founding partner of Angel City in December, Crypto.com has reportedly downsized its commitment, putting projects like Web3 education and NFTs on the backburner. The NWSL club’s lawyers, however, allege that Crypto.com pulled out of the deal and is withholding funds.

The context: Crypto.com is also scaling back with other partners (like FIFA) and even backed out of a five-year, $495 million deal with the UEFA Champions League after agreeing in principle.

• The exchange also let go of 30-40% of its staff throughout June to August, including a brand new marketing team created just this summer. Not good.

Zooming out: Though some project warmer days ahead, caution may still be necessary in the emerging blockchain space. The market was worth an estimated $3 trillion this time last year, and has lost roughly $2 trillion in value since.

• Angel City’s situation is reminiscent of the NWSL’s unresolved partnership with Voyager, which could leave the league’s players without promised funds after the crypto brokerage filed for Chapter 11 bankruptcy in July.