A crypto-heavy NBA season comes to an end – CNN

Cryptocurrency, Blockchain and NFTs

LeBron James is the first active NBA player to achieve billionaire status, according to Forbes. CNN’s Rahel Solomon breaks down his wealth.

” data-duration=”02:24″ data-editable=”settings” data-headline=”LeBron James is a billionaire. This is how he built his fortune” data-index=”idx-0″ data-show-name=”New Day” data-show-url=”https://www.cnn.com/shows/new-day” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_857e182e6d2cc79bc97cfd6480fec9f7-h_55d50a83d89436542e5cc6fdfe7409c0-pageTop@published” data-video-id=”business/2022/06/03/lebron-james-billionaire-newday-solomon-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_857e182e6d2cc79bc97cfd6480fec9f7-h_55d50a83d89436542e5cc6fdfe7409c0-pageTop@published”>

Now playing

LeBron James is a billionaire. This is how he built his fortune

Crypto prices are sinking and the industry is cutting jobs. CNN Business’ Allison Morrow joins ‘Nightcap’ host Jon Sarlin to talk about the people affected by crypto’s collapse.

” data-duration=”02:15″ data-editable=”settings” data-headline=”This crypto collapse has a human cost” data-index=”idx-1″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_dc90dc7cb61c2e5b907e4abdf20a2847″ data-video-id=”business/2022/06/16/nightcap-crypto-collapse-clip-orig-no.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_dc90dc7cb61c2e5b907e4abdf20a2847″>

Now playing

This crypto collapse has a human cost

During a TechCrunch conference, Microsoft co-founder Bill Gates explained why he does not invest in cryptocurrency or NFTs.

” data-duration=”01:35″ data-editable=”settings” data-headline=”Video: Bill Gates mocks Bored Ape NFT’s” data-index=”idx-2″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_98bc7c16e88fe5ad3d9507c82d1f0ef6″ data-video-id=”business/2022/06/15/bill-gates-crypto-bored-ape-orig-dp.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_98bc7c16e88fe5ad3d9507c82d1f0ef6″>

US Microsoft founder, Co-Chairman of the Bill & Melinda Gates Foundation, Bill Gates, poses for a picture on October 9, 2019, in Lyon, central eastern France, during the funding conference of Global Fund to Fight AIDS, Tuberculosis and Malaria. - The Global Fund to Fight AIDS, Tuberculosis and Malaria on October 9, 2019, opened a drive to raise $14 billion to fight a global epidemics but face an uphill battle in the face of donor fatigue. The fund has asked for $14 billion, an amount it says would help save 16 million lives, avert

Now playing

Video: Bill Gates mocks Bored Ape NFT’s

With bitcoin’s drop, the status of cryptocurrency as “digital gold” may be changing, and it has investors worried. CNN’s Paul R. La Monica reports.

” data-duration=”03:20″ data-editable=”settings” data-headline=”Here’s why bitcoin’s drop has investors worried” data-index=”idx-3″ data-show-name=”Quest Means Business” data-show-url=”https://www.cnn.com/shows/quest-means-business” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_343d08d3eb483f175426bd5b94fd8679″ data-video-id=”business/2022/06/13/bitcoin-drop-cryptocurrency-la-monica-sot-qmb-vpx.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_343d08d3eb483f175426bd5b94fd8679″>

Bitcoins with US tax form 1040. Golden Bitcoin on tax form. Tax form pay concept

Now playing

Here’s why bitcoin’s drop has investors worried

CNN’s Boris Sanchez explains recent movements in the crypto market and how its volatility has caused popular stablecoins like Tether and Terra to falter.

” data-duration=”03:23″ data-editable=”settings” data-headline=”Stablecoins faltering amid crypto market volatility” data-index=”idx-4″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_6bb5f910151bcd729436a60a4be5e2f3″ data-video-id=”business/2022/05/15/crypto-market-volatility-stablecoins-sanchez-pkg-newday-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_6bb5f910151bcd729436a60a4be5e2f3″>

A visual representation of the digital Cryptocurrency, Bitcoin on December 07, 2017 in London, England.

Now playing

Stablecoins faltering amid crypto market volatility

As the Bitcoin industry grows, CNN’s Nick Watt visits a Washington state county where a quarter of all electricity generated is powering Bitcoin mining.

” data-duration=”03:08″ data-editable=”settings” data-headline=”A quarter of all the electricity in this county is powering Bitcoin mining” data-index=”idx-5″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_1ce6ad33e0138661c59596e8480e7eb6″ data-video-id=”business/2022/04/25/watt-dnt-bitcoin-mining-electricity-washington-nr-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_1ce6ad33e0138661c59596e8480e7eb6″>

CNN

Now playing

A quarter of all the electricity in this county is powering Bitcoin mining

A new study shows that China’s crackdown on cryptocurrency has caused the bitcoin network to have even more of a carbon footprint. CNN’s Jon Sarlin talks with Alex de Vries, one of the study’s researchers, about how bitcoin now has a carbon footprint equivalent to Greece.

” data-duration=”02:34″ data-editable=”settings” data-headline=”Bitcoin’s carbon footprint is growing larger. Here’s why.” data-index=”idx-6″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_d873feaeac4f2f06082fcfa4ef260a4f” data-video-id=”business/2022/02/25/bitcoin-crypto-environmental-impact-js-orig.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_d873feaeac4f2f06082fcfa4ef260a4f”>

Internet cables and power cables at a bitcoin mine in Sichuan Province, China, on September 27, 2016.

Now playing

Bitcoin’s carbon footprint is growing larger. Here’s why.

CNN’s Nick Watt reports on how the entertainment industry, sports and politicians are cashing in on the cryptocurrency craze.

” data-duration=”02:56″ data-editable=”settings” data-headline=”Cryptocurrencies take Hollywood, sports and politics by storm” data-index=”idx-7″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_40617ab27028bf81e7bd5879138e0b49″ data-video-id=”business/2022/02/11/cryptocurrency-takeover-hollywood-politics-sports-super-bowl-ads-ebof-watt-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_40617ab27028bf81e7bd5879138e0b49″>

Coins representing crypto currency of bitcoin, ethereum, litecoin, monero, ripple, dash, on a dark background, a pattern of coins. Business, finance and technology concept.

Now playing

Cryptocurrencies take Hollywood, sports and politics by storm

Sen. Sherrod Brown (D-OH) spoke against cryptocurrency during a Senate Banking Committee hearing.

” data-duration=”02:35″ data-editable=”settings” data-headline=”Sen. Brown on cryptocurrency: Fraud, scams and outright theft” data-index=”idx-8″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_3fabc1f62194c0ea52eeec9e83bd7e48″ data-video-id=”business/2022/02/15/senate-banking-committee-cryptocurrency-sherrod-brown-raw-sot-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_3fabc1f62194c0ea52eeec9e83bd7e48″>

senate banking committee cryptocurrency sherrod brown raw sot vpx_00015610.png

Now playing

Sen. Brown on cryptocurrency: Fraud, scams and outright theft

A New York couple has been arrested on charges of conspiring to launder $4.5 billion in stolen cryptocurrency, and conspiring to defraud the US. Officials have seized $3.6 billion, the “largest seizure of cryptocurrency ever by US law enforcement,” according to the DOJ. CNN’s Zain Asher reports.

” data-duration=”01:40″ data-editable=”settings” data-headline=”DOJ seizes $3.6 billion tied to New York couple’s bitcoin hack” data-index=”idx-9″ data-show-name=”” data-show-url=”” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_83c93d4e24a8693a75a63a2f40829aa6″ data-video-id=”business/2022/02/10/bitcoin-couple-cryptocurrency-arrest-money-laundering-pkg-qmb-vpx.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_83c93d4e24a8693a75a63a2f40829aa6″>

Instagram: heatherreyhan

Now playing

DOJ seizes $3.6 billion tied to New York couple’s bitcoin hack

While A-list celebrities like Kim Kardashian and Matt Damon are being paid to promote crypto, one actor is publicly bucking the trend. Ben McKenzie, of “The OC” and “Gotham,” has become one of the most prominent critics of celebrities endorsing the controversial and booming industry. CNN’s Jon Sarlin talks with McKenzie about his journey from TV star to crypto critic.

” data-duration=”03:46″ data-editable=”settings” data-headline=”TV star has new role: Crypto critic” data-index=”idx-10″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_271428e0305ed2464a3474077d2e1a17″ data-video-id=”business/2021/11/23/kim-kardashian-crypto-ben-mckenzie-js-orig.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_271428e0305ed2464a3474077d2e1a17″>

Now playing

TV star has new role: Crypto critic

Los Angeles’ Staples Center is becoming the Crypto.com Arena in a 20-year naming rights agreement. CEO Kris Marszalek explains why it’s the right moment to “level up” the brand.

” data-duration=”03:27″ data-editable=”settings” data-headline=”Crypto.com buys Staples Center naming rights” data-index=”idx-11″ data-show-name=”” data-show-url=”” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_d4faf3ae36b9627ec1dd1bb9b91d06c9″ data-video-id=”business/2021/11/19/crypto-arena-staples-center-name.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_d4faf3ae36b9627ec1dd1bb9b91d06c9″>

The statue of former Los Angeles Lakers Magic Johnson is seen in front of Staples Center following an NBA basketball game between the Los Angeles Clippers and the San Antonio Spurs Tuesday, Nov. 16, 2021, in Los Angeles. The Staples Center in downtown Los Angeles will be renamed Crypto.com Arena on Christmas. The home of the NBA's Lakers and Clippers, the NHL's Kings and the WNBA's Sparks will change its name after 22 years. (AP Photo/Mark J. Terrill)

Now playing

Crypto.com buys Staples Center naming rights

Cryptocurrency might be everywhere, but good luck buying a cup of coffee with it. CNN’s Jon Sarlin explains why crypto can be valuable but not exactly useful.

” data-duration=”03:23″ data-editable=”settings” data-headline=”Crypto: The future of money or the biggest scam?” data-index=”idx-12″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_ef2cdef9bd37c946e1550b52be8b5476″ data-video-id=”business/2021/11/04/crypto-js-orig.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_ef2cdef9bd37c946e1550b52be8b5476″>

Edward Smith/Getty Images

Now playing

Crypto: The future of money or the biggest scam?

JPMorgan Chase CEO Jamie Dimon once again attacked the top cryptocurrency during a virtual appearance at the Institute of International Finance Meeting. CNN’s Paul R. La Monica reports.

” data-duration=”01:52″ data-editable=”settings” data-headline=”Jamie Dimon blasts bitcoin as ‘worthless'” data-index=”idx-13″ data-show-name=”” data-show-url=”” data-source=”CNNBusiness” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_0bee3424bb0745564ac41d6a8bfc9eda” data-video-id=”business/2021/10/12/jamie-dimon-bitcoin.cnnbusiness” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_0bee3424bb0745564ac41d6a8bfc9eda”>

JPMorgan Chase & Co. CEO Jamie Dimon speaks during the Business Roundtable CEO Innovation Summit in Washington, DC on December 6, 2018. (Photo by Jim Watson/AFP/Getty Images)

Now playing

Jamie Dimon blasts bitcoin as ‘worthless’

At a CNN Business “Foreseeable Future” event hosted by Julia Chatterley, an expert panel talks about regulating the industry and the possible risks of doing it incorrectly.

” data-duration=”03:04″ data-editable=”settings” data-headline=”Crypto experts explain how to regulate the industry” data-index=”idx-14″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_74d31b10a5db91bfab94c4140356fbae” data-video-id=”business/2021/09/30/cryptocurrency-experts-regulation-sec.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_74d31b10a5db91bfab94c4140356fbae”>

cryptocurrency experts regulation sec _00001125.png

Now playing

Crypto experts explain how to regulate the industry

Scott Galloway explains why more traditional financial institutions are embracing cryptocurrency and what that means for fiat currency. Check out Scott Galloway’s new show on CNN+, starting in 2022.

” data-duration=”03:15″ data-editable=”settings” data-headline=”Will cryptocurrency replace the dollar? Scott Galloway explains” data-index=”idx-15″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_16c2cb8e01e9b1397c5b82bec995f9eb” data-video-id=”business/2021/09/27/sam-spreen-galloway-cryptocurrency.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_16c2cb8e01e9b1397c5b82bec995f9eb”>

sam spreen _ galloway cryptocurrency_00000908.png

Now playing

Will cryptocurrency replace the dollar? Scott Galloway explains

New York CNN Business —

As the Golden State Warriors and their star point guard Steph Curry surged ahead of the Boston Celtics in Game 6 on Thursday to win their fourth NBA championship in eight seasons, it should also have been a win for the crypto industry.

The Warriors were said to have previously inked a sponsorship deal with FTX, a cryptocurrency exchange, reportedly worth $10 million. Curry himself earlier this year appeared in a commercial for FTX, in which he repeatedly notes he is not an expert on crypto. And the industry featured in the commercials during the finals, including an advertisement from Coinbase, another exchange, mocking crypto doubters by showing different tweets over the years claiming “Crypto is dead,” followed by the words, “Long live crypto.”

But as an NBA season and post-season awash in cryptocurrency sponsorships came to a close this week, the crypto industry was confronting new challenges. The price of many cryptocurrencies has plummeted, with Bitcoin falling to just above $20,000 this week, down from an all-time high of nearly $69,000 in November. Meanwhile, a wave of layoffs has spread throughout the sector to brace for a possible prolonged economic downturn. Now, the optics of those deals may have changed.

Any sports fan this year has been bombarded with crypto, including advertisements, arena name changes, logos on jerseys and NFT offerings. But even by that standard, the NBA has stood out. In just the last year, crypto jumped to the second highest spending sector in NBA sponsorships, up from 43rd, according to IEG, a sports partnerships consultancy. Cryptocurrency brands spent more than $130 million on NBA sponsorship this season, up from less than $2 million last season, according to the firm.

“The influx of spending is like nothing we’ve ever seen before. I would have expected that to be potentially a little bit more measured, but it has been completely like literally a runaway train,” Peter Laatz, Global Managing Director at IEG, told CNN Business. “They were sort of spraying money everywhere.”

Just five crypto companies, including Crypto.com, Coinbase and FTX, were responsible for 92% of the sector spending that helped the NBA reach $1.6 billion in annual sponsorship fees this season, according to IEG. The firm described the spending between the companies as a “bit of an arms race.”

Then the market shifted. On Tuesday, one day after Coinbase aired its “long live crypto” commercial during Game 5, the startup announced laying off 1,100 people. In an email to staff, Coinbase CEO Brian Armstrong noted the possibility of a recession, which he said “could lead to another crypto winter, and could last for an extended period.”

Stephen Curry of the Golden State Warriors dribbles during 2022 NBA Finals Practice and Media Availability on June 15, 2022 at the TD Garden in Boston, Massachusetts.

Coinbase said the commercial was a set part of their standing deal with the NBA, as the firm inked a multiyear agreement in October with the league to serve as the exclusive cryptocurrency platform partner of the NBA and WNBA. “This commercial was part of a prearranged package that came with our sponsorship of the NBA,” according to a company spokesperson.

Crypto.com, another cryptocurrency exchange, purchased the naming rights for the Los Angeles Lakers’ stadium in November, a deal reportedly worth $700 million. It also entered a multiyear deal to become the Philadelphia 76ers’ official jersey patch partner. Crypto.com announced this week that it is laying off 260 employees due to the market downturn.

In a statement, the company said it remains “focused on investing resources into product and engineering capabilities to develop world-class products, as well as our strategic sports partnerships and believe they will continue to play a crucial role in our mission to accelerate the world’s transition to cryptocurrency.”

Binance, the rare crypto company to be hiring right now, recently appeared to take a dig at the sponsorship deals other startups entered into. In a hiring announcement, Binance CEO Changpeng Zhao said: “It was not easy saying no to Super Bowl ads, stadium naming rights, large sponsor deals a few months ago, but we did.”

Laatz, from IEG, said the “only thing” he can think to compare the crypto sponsorhip deals to is business spending activity during the dot-com bubble.”There were xyz.com arenas popping up all over the place back in the day and that whole thing blew up and the deals went away,” he said.

But as long as the sponsorship checks keep coming in, the NBA won’t feel the pain, Laatz said. “The teams… would take that money over and over again,” he said. “Getting it for a couple of years is better than getting nothing.”

With or without the same number of sponsorship deals in the future, there are other ways the close tie-up between the NBA and the larger crypto industry may continue, including through NFTs, which are pieces of digital content linked to the blockchain, the digital database underpinning cryptocurrencies.

The NBA is involved in the NFT market with NBA Top Shot, a League-focused NFT marketplace that allows fans to buy, sell and trade basketball highlights, or “Moments.” Top Shot, launched by Dapper Labs, was released to the public in October 2020 and has big name investors in the game, including Michael Jordan and Kevin Durant.