Crypto.com, a cryptocurrency trading platform, secured a 20-year contract agreement worth $ 700 million with Anschutz Entertainment Group (AEG) to purchase the naming rights of the Staples Center in Los Angeles, home of the Los Angeles Lakers.
The name change will come into effect on Christmas Daywhen the Lakers host the Brooklyn Nets.
After the deal was announced Tuesday night, Crypto.com's coin, called CRO, rallied. It's up more than 24% in 24 hours and has cracked the top 20 cryptocurrencies by market value. CRO is now classified No. 18, according to CoinGecko.
Crypto.com has seen substantial growth in a relatively short period. The platform was launched in 2016 and surpassed one million users in September 2019. It now has more than 10 million users.
CRO launched late 2018and the approximate return on investment if purchased at launch is more than 2,500%, according to CoinMarketCap. But remember: financial experts view cryptocurrencies as volatile and risky investments. As fast as one reaches a new high, it could go down again.
Nonetheless, this deal with AEG may generate additional market share for Crypto.com in the cryptocurrency space, as it will now partner with the Lakers, one of the top brands in the NBA.
And besides being one of the increased naming rights agreements In sports, the deal also provides Crypto.com with core brand awareness.
"This partnership is about the future," said Dan Beckerman, AEG president and CEO.
"AEG and Crypto.com not only share a vision for innovation and the future of sports and entertainment, but we also have a shared commitment to our communities where we work and live. We look forward to partnering with Crypto.com to create meaningful initiatives for bring that vision to life for years to come. "
As of 12:43 p.m. EST on Wednesday, CRO is currently trading at around 52 cents, with a market value of more than $ 12 billion.
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