Binance Terminates Sponsorship Deal With Argentina Amid Falling Profit
Key Points:
- Binance, the world’s largest cryptocurrency exchange, has unexpectedly terminated its sponsorship agreement with the Argentina national football team.
- The deal, signed in early 2022, was controversial as the exchange competed with the Chiliz/Socios fan token project for sponsorship rights.
- Binance’s decision comes amidst growing regulatory challenges, declining profits, and recent layoffs at the exchange.
Binance, the world’s largest cryptocurrency exchange, has terminated its sponsorship agreement with the reigning World Cup champion, Argentina. The unexpected move was announced on Twitter, stating that the exchange had ended its sponsorship of the Argentina football team.
The sponsorship agreement between the exchange and Argentina was signed in early 2022 for a period of five years. The exact value of the agreement was not disclosed. As part of the deal, Binance’s logo was set to appear on the team’s training jerseys and stadiums during friendlies featuring Argentina.
“Binance has decided to end its association with the AFA (Argentine Football Association). We regularly evaluate the results of our partnerships around the world and unfortunately, despite being offered time and opportunity, AFA has not fully met its contractual obligations, which goes against our business values and our association principles. Binance remains committed to growing in Argentina and continues to engage with local partners, including prestigious universities, with the goal of continuing to expand educational efforts and strategic business alliances,” the exchange stated.
The sponsorship deal itself was surrounded by controversy, as Binance competed with the Chiliz/Socios fan token issuance project to become the sponsor for the Argentina team, including star player Lionel Messi. Socios, feeling aggrieved, sued the Argentine Football Federation (AFA), seeking to be the sole fan token partner until 2026.
This termination of sponsorship comes at a challenging time for Binance. The exchange has faced regulatory and legal challenges globally, resulting in recent layoffs of over 1,000 employees. The declining profits of the company have also led to the cessation of certain employee benefits.
In addition to the Argentina football team, the exchange sponsors other teams and issues fan tokens for S.S Lazio (Italy), FC Porto (Portugal), and Santos FC (Brazil). The exchange has also partnered with the Confederation of African Football to sponsor the 2021 Africa Cup of Nations (CAN) and collaborates with the F1 Alpine team. Binance’s NFT platform has partnered with Cristiano Ronaldo to release NFT collections for fans.
In recent years, Binance has faced various legal and business challenges. The exchange has been sued by the US Securities and Exchange Commission (SEC) and is rumored to face potential criminal prosecution by the US Department of Justice. It has encountered regulatory troubles in several countries, including the UK, the Netherlands, Belgium, Cyprus, Brazil, Austria, France, Germany, and Australia.
These developments have impacted the exchange’s market share, particularly in the US, where its Binance.US platform has lost a banking partner, limiting its ability to handle USD transactions. The exchange has also reportedly laid off a significant number of employees, although Binance CEO Changpeng Zhao has disputed the accuracy of the reported figures.
In late June, several key members of Binance’s senior management resigned, including the Chief Counsel, Chief Strategy Officer, and Vice President of Legal Compliance. These departures are believed to be linked to the ongoing investigation by the US Department of Justice into Binance’s activities.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Binance Terminates Sponsorship Deal With Argentina Amid Falling Profit
Key Points:
- Binance, the world’s largest cryptocurrency exchange, has unexpectedly terminated its sponsorship agreement with the Argentina national football team.
- The deal, signed in early 2022, was controversial as the exchange competed with the Chiliz/Socios fan token project for sponsorship rights.
- Binance’s decision comes amidst growing regulatory challenges, declining profits, and recent layoffs at the exchange.
Binance, the world’s largest cryptocurrency exchange, has terminated its sponsorship agreement with the reigning World Cup champion, Argentina. The unexpected move was announced on Twitter, stating that the exchange had ended its sponsorship of the Argentina football team.
The sponsorship agreement between the exchange and Argentina was signed in early 2022 for a period of five years. The exact value of the agreement was not disclosed. As part of the deal, Binance’s logo was set to appear on the team’s training jerseys and stadiums during friendlies featuring Argentina.
“Binance has decided to end its association with the AFA (Argentine Football Association). We regularly evaluate the results of our partnerships around the world and unfortunately, despite being offered time and opportunity, AFA has not fully met its contractual obligations, which goes against our business values and our association principles. Binance remains committed to growing in Argentina and continues to engage with local partners, including prestigious universities, with the goal of continuing to expand educational efforts and strategic business alliances,” the exchange stated.
The sponsorship deal itself was surrounded by controversy, as Binance competed with the Chiliz/Socios fan token issuance project to become the sponsor for the Argentina team, including star player Lionel Messi. Socios, feeling aggrieved, sued the Argentine Football Federation (AFA), seeking to be the sole fan token partner until 2026.
This termination of sponsorship comes at a challenging time for Binance. The exchange has faced regulatory and legal challenges globally, resulting in recent layoffs of over 1,000 employees. The declining profits of the company have also led to the cessation of certain employee benefits.
In addition to the Argentina football team, the exchange sponsors other teams and issues fan tokens for S.S Lazio (Italy), FC Porto (Portugal), and Santos FC (Brazil). The exchange has also partnered with the Confederation of African Football to sponsor the 2021 Africa Cup of Nations (CAN) and collaborates with the F1 Alpine team. Binance’s NFT platform has partnered with Cristiano Ronaldo to release NFT collections for fans.
In recent years, Binance has faced various legal and business challenges. The exchange has been sued by the US Securities and Exchange Commission (SEC) and is rumored to face potential criminal prosecution by the US Department of Justice. It has encountered regulatory troubles in several countries, including the UK, the Netherlands, Belgium, Cyprus, Brazil, Austria, France, Germany, and Australia.
These developments have impacted the exchange’s market share, particularly in the US, where its Binance.US platform has lost a banking partner, limiting its ability to handle USD transactions. The exchange has also reportedly laid off a significant number of employees, although Binance CEO Changpeng Zhao has disputed the accuracy of the reported figures.
In late June, several key members of Binance’s senior management resigned, including the Chief Counsel, Chief Strategy Officer, and Vice President of Legal Compliance. These departures are believed to be linked to the ongoing investigation by the US Department of Justice into Binance’s activities.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Read more...
Coincu News
Read More