The growth of the Cryptocurrency space, in the last year, has continued to see the influx of many large corporations into the space. Institutional adoption and investments in many digital assets have also been on a high. Many other traditional financial institutions have also started to incorporate cryptocurrency trading into their space to get involved in the booming market space. Investment conglomerates like JP Morgan and Goldman Sachs, at the insistence of their institutional customers, are starting to contemplate the idea of Cryptocurrency holding and trading services for their customers.
FTX set to raise the bar
On the contrary, FTX- one of the world’s largest crypto exchanges, will become one of the significant players from the crypto space to get involved fully with the business world outside the space. Sam Bankman-Fried’s owned-FTX is now set to sponsor the American basketball team, Miami Heat. The report from Miami Herald last Friday also confirmed that the basketball’s hierarchy has been looking for a sponsor that will replace American Airlines who has been sponsoring it for a while now.
However, the news also confirmed that the deal would be the first NBA-related deal, as it believes it will be tied to digital assets. While the herald did not give complete assurance that the new crypto company will now pay $2 million a year to replace American Airlines is FTX, they had some strong convictions. The naming right purchase will likely feature a name change, and the recent registration of a website named “ftxarena.com” fuels the rumored news. Another angle that likely confirms the new purchase is the registration of verified social media handles “FTXarena”. If eventually, the partnership will further show that the cryptocurrency space can continue to integrate into the real world.
Is it sustainable for now?
While FTX is doing something quite remarkable and worthy of commendation, the big question on many analysts’ lips is that if this is sustainable. The growth of the cryptocurrency space has been remarkable, but there is still a lot more that needs to be done. However, many analysts’ opinions have been divided about the rumored sponsorship of Miami heats by FTX. At the same time, some argued that it was not the necessary needed step by a crypto firm, as the cryptocurrency space continues to chase growth and diversification.
On the other hand, many believe that FTX’s move is the right step in the right direction, as it will further bolster the fortunes of the cryptocurrency space. The cryptocurrency space has continued to struggle for acceptance in some parts of the world, despite its growing popularity and success. However, if crypto exchanges continue to partake in business activities outside their terrain, many analysts believe that it will further bolster the space’s adoption. However, the one million dollar question that is yet to be unanswered is if FTX’s move is a sustainable one, Or should we expect Binance, Coinbase, and Co. to follow suit?. However, only time will tell.