Months After $700,000,000 Injection Into Lakers, Thousands at Risk of Losing Jobs as Uncertainty Looms Over Massive Crypto Corporation

The Los Angeles Lakers are probably the most storied franchise in the NBA. An overlooked aspect is the market, where again, the Lakers have thrived. Investing in LA is almost guaranteed success, as they are among the 3 most profitable teams in the league. One such company that thought along the same lines was Crypto.com. The site agreed to a 20-year, $ 700 million deal with the Lakers. The deal gave the company arena naming rights as the iconic Staples Center became the Crypto.com Arena. However, uncertainty now looms over the company.

After a stellar comeback through the season, are the Lakers about to lose their home? And, how many people is it going to affect?

Uncertainty for the Lakers as Crypto.com shuts down operations in the US

The company has decided to suspend its institutional exchange service for its U.S. customer base on June 21. While cryptocurrency firms like Binance and Coinbase got sued by the SEC, Crypto.com cited the “current market landscape” for its decision.

Institutional investors account for large accredited customers and companies. However, customers from the States can continue to use their retail app. The app boasts an impressive user count of more than 80 million.

As the US government cracks down on cryptocurrency, a lot of companies are withdrawing services from the USA. Crypto.com’s decision comes on the back of last year’s collapse of the market that saw the bankruptcy of FTX, another sporting giant.

Watch This Story: 24 Hours After LeBron James Trade Rumors, 6’10” Lakers Star Also Speculated To Join The Exit List This Summer

This news has brought fear for jobs among the company’s employees. After last year’s FTX collapse, Crypto had laid off 20% of its entire workforce. Out of a total of 2,450 employees, about 500 were let go in one swipe. With a more radical change coming directly to the company, uncertainty looms over its employees.

Crypto’s large-scale investment in Sports

It has been a sad few years for sports investing companies. As mentioned earlier, last year saw the collapse of FTX, which used to hold the Miami Heat arena naming rights. The company also sponsored MLB umpire uniforms and was backed by athletes such as Tom Brady, Stephen Curry, and Shaquille O’Neal.

Crypto.com reportedly had a revenue of $1.2 billion in 2021. After a bruising 2022 that saw them fire multiple employees, the company is unstable. However, their billion-dollar investment in sports might be its saving grace.

Read More: ?Luka a Laker?: Amid Kyrie Irving?s Latest Revelation, NBA Fans Create LeBron James Trade Scenario on Social Media

Of the billion, the most high-profile acquisition is of course the $700 million deal for the former Staples Center’s naming rights. Along with that, the company has sponsorships with the UFC, FIFA, Formula 1, and a jersey patch deal with the Philadelphia 76ers as well. With uncertainty looming over Lakers star LeBron James’ retirement, perhaps instability is the flavor of the season in LA.