A year after Crypto.com unveiled its Matt Damon Commercial, the crypto exchange’s volume does not seem to be doing so well.
Falling trading volume
The last year has seen the normalized exchange volume of Crypto.com drop by 91%. According to CoinGecko, the 7-day average shows that the trading volume has gone down to $380 million per day from $4 billion.
While this definitely does not mean that the ad caused the volume to decline, it does not appear to have helped the company spur growth, even after it used an A-list celebrity.
Moreover, there is also the problem of the bear market that seems to be ongoing in the crypto world, which has seen it shed about two-thirds of its total market cap as opposed to a year ago.
However, even before the crypto market had taken its tumble, Crypto.com had seen its Matt Damon commercial receive a very lukewarm response.
The said advertisement did a comparison of crypto investors with the Wright brothers, mountain climbers, and astronauts.
Not long after the advertisement was released, the crypto exchange invested another $700 million for obtaining the naming rights of the Los Angeles Arena, which was previously called the Staples Center.
Back then it had seemed that the marketing efforts of the crypto exchange had paid off and given it the boost it wanted.
As for the Matt Damon ad, it made the rounds for a couple of months in the crypto industry and had then begun to reach those outside the industry at the beginning of this year.
It was not able to generate a lot of good reactions. As a matter of fact, it was even mocked by an episode of South Park that comprised a parody of pee drinking.
However, it is not just the trading volume of the crypto exchange that has taken a hit.
The CRO (native Cronos token) of Crypto.com that gives its holders concessions on the trading fees, along with other benefits, has seen its market capitalization decline.
According to statistics from CoinGecko, the total market cap of the token was $2.8 billion and on Friday afternoon, it was trading at $0.11.
These two metrics are 50% of what they had been last year. The last couple of months have also seen the crypto exchange undergo several nights of layoffs.
A sponsorship deal that Crypto.com had made with the European Champions League (EUFA) worth $495 million was also canceled.
The news broke in August and in the same week, the company also sued a woman who had kept $10 million that had been sent to her crypto wallet accidentally.
While Crypto.com is struggling, its peers have not fared a lot better either. Huobi has also seen its normalized volume plummet by 90%, while Coinbase has lost 75%.
FTX has lost 77% trading volume, while the biggest crypto exchange Binance has seen its trading volume fall by 57%, even though it rolled out no-fee trading over the summer for Bitcoin and Ethereum.