Binance, a crypto exchange titan, finds its association with the Argentine soccer association terminated, a partnership it fostered just last year, amid what the platform termed ‘breach of contract’ allegations. Binance evoked displeasure at the Argentine Football Association’s (AFA) supposed non-compliance amid the entrusted obligations.
Previously in January 2022, Binance had crowned itself the primary sponsor of Argentina’s formidable national soccer team while earning naming rights for the national league. This commitment stirred discordance as AFA, in order to align with Binance, pivoted from an existing contract with fan token platform, Socios. Socios, although jilted, continues to exclusively cater to AFA’s official fan token, $ARG, until 2026.
However, Binance critically highlighted contractual non-alignment by AFA even though specified time and opportunities for compliance had been offered. These misalignments, Binance’s statement suggests, infringe on its professional values and principles.
The bear market of recent times, along with regulatory crackdowns worldwide, have drastically affected all niches of the crypto market and certainly, Binance’s stance remains no exception. A significant indicator of it is the Wall Street Journal’s report indicating Binance reportedly halting certain employee perquisites in the backdrop of a profitability downturn.
Binance’s confrontations extend beyond this profit shiver. Recently, adding to a series of regulatory obstacles and multiple legal confrontations, it trimmed more than 1,000 of its global workforce, sparking speculation of the possibility that eventually one-third of the preceding 8,000-strong battalion might be axed.
Earlier in June, the Securities and Exchange Commission had dragged Binance, Binance.US and founder Changpeng “CZ” Zhao into a legal wrangle citing allegations of operation as an unlicensed securities exchange, broker and clearinghouse, offering US customers access to buy and trade select cryptocurrencies deemed unregistered securities by the regulatory body.
While the strapping connection with AFA had promised lucrative marketing exposure, the toll of contractual misalignments on the business was too grand. Binance reinforced the importance of contractual obligation adherence on account of its partnership principles, even at the stake of a prominent association like this, a testament to the fundamentally volatile nature of crypto markets.
Source: Coindesk
