Manchester City, dubbed European soccer champions, have locked a fresh agreement with renowned cryptocurrency exchange OKX, resolute in its commitment despite the recent turbulence in the crypto industry. The enhanced deal heralds OKX’s logo on Man City’s premier on-field shirts from the forthcoming season, extending beyond its current placement on players’ training apparel, as disclosed in a recent email announcement from OKX.
Engaging with elite sports bodies has become a tactical maneuver executed by crypto companies in 2021 and 2022, thrusting their respective brands onto stadia, arenas as well as players and officials uniforms alike. However, this trend, as shiny as it may look, comes with a few caveats, which surfaced following the downfall of FTX in November last year, casting a shadow on such alliances’ solidity.
Amongst Man City’s and other sports organisations’ concerns was the potential replication of the FTX debacle. OKX was put on the spot about the odds of a similar descension. Rather than responding to such queries sporadically, the exchange offered a detailed insight into its ‘proof of reserves’, a technological demonstration of its liquidity sufficient enough to process customer withdrawals, providing assurance of fund security.
The adoption of a more critical outlook towards this alliance is evident from teams like Man City and McLaren Formula 1. They have been auditing OKX’s proof of reserves, with the board members maintaining an open communication line with the exchange, seeking answers to their questions and concerns. OKX Chief Marketing Officer, Haider Rafique, views the completion of this rigorous inspection as a real acquisition of validation for OKX.
Thus, while the benefits of crypto-sports collaborations are apparent in terms of amplified visibility and promotional gains, both parties must navigate this path cautiously. Underlying financial instability could potentially undercut the durability of these partnerships. Therefore, thorough audits, back-and-forth interrogations, and rigorous inspections become crucial guardrails ensuring that one wrong move doesn’t send the whole arrangement, and potentially even the company, spiraling downwards.
Source: Coindesk
