UFC sponsor Crypto.com is facing fears of a market contagion after FTX filed for bankruptcy.

On November 12, 2022, the UFC 281 results has come out: Zhang Weili (23-3 MMA, 7-2 UFC) locked in a rear-naked choke on Carla Esparza (19-7 MMA, 10-5 UFC) at 1:05 of Round 2. Zhang Weili is the champion once again and she earned the title back at Madison Square Garden. As the sponsor, Crypto.com shows a strong presence during the game. UFC President Dana White said, “This is a partnership between two companies that are the best at what they do.” As we know, Crypto.com spent $175 million to emblazon its brand logo on UFC fight kits for the next 10 years.

The Crypto.com

Last Friday, the crypto exchange FTX filed for chapter 11 bankruptcy protection and the CEO Sam Bankman-Fried‘s step down has brought a storm to the cryptocurrency market. The downfall of FTX sparked an increase in outflows across the global market. Crypto.com, a cryptocurrency exchange that sponsors the UFC, is facing fears of a market contagion after the FTX collapse. Crypto.com is trying to claim its clients as anxiety permeates the market. Kris Marszalek, the CEO of Crypto.com, recently attended a live AMA (Ask Any Question) on Youtube. He told his clients that the platform is “performing business as usual.” “People are depositing, people are withdrawing, people are trading, there’s a pretty normal activity just at a heightened level,” Marszalek added. Marszalek is a seasoned entrepreneur who has twice grown his companies from $0-$100 million in revenue. Recently, Marszalek posted multiple Twitter to comfort investors. “ The withdrawals are being processed as usual. No FUD please.”

Fear, Uncertainty, and Doubt among the investors

However, in the comment section, many investors still remain doubtful about Marszaleks claim. And anxiety is still wandering in the crypto markets. How to eliminate the crisis of trust caused by FTX collapse on the Crypto market is an urgent problem for exchanges including Crypto.com to solve.

On the other hand, Kris Marszalek also addressed that the company accidentally sent $400 million $ETH to the wrong wallet address, which was later returned. The mistake sparked fears that Crypto.com user funds were in jeopardy. To further assuage concerns, Marszalek added that Crypto.com will publish an audited “proof of reserves” in an attempt to increase transparency.

Crypto.com made headlines last year after signing various high-level sponsorship agreements, including the rebranding of the Staples Center sports stadium to Crypto.com Arena. The company also hired actor Matt Damon for a commercial and is currently sponsoring several sports entities, including the UFC. Many investors consider this a warning to the crypto community as the risk still remains. And Some even think that those exchange platforms will fall like dominoes.

WikiFX will keep up with the latest updates on the issue so as to bring you the most significant coverage.