Amid growing skepticism surrounding collaborations between professional sports entities and cryptocurrency firms, OKX, a renowned cryptocurrency exchange, has fearlessly signed a sponsorship deal with Manchester City. This agreement, exceeding $70 million, continues the club’s partnership with the exchange, notwithstanding the looming apprehension caused by a now-defunct cryptocurrency platform, FTX.
Shaking off the Shadows of FTX
The demise of FTX, which was once a trusted player in the crypto arena, turned out to be one of the most significant scandals in the digital asset industry. Unveiled as a complex fraud scheme, the exchange had engaged with several sports entities, thereby leaving a sour aftertaste following its downfall. However, this incident hasn’t discouraged Manchester City, one of UK’s top football teams, from maintaining its association with the crypto industry.
The OKX exchange has inked a hefty sponsorship deal with Manchester City following the latter’s historic treble triumph, including victories in the English Premier League, the FA Cup, and the European Champions League.
As initially reported by Forbes, the OKX logo will grace the sleeve of Man City’s game-day jerseys and training kit in the upcoming season.
Proof of Reserves: Ensuring Trust
In a conversation with Coindesk, OKX’s Chief Marketing Officer, Haider Rafique, addressed FTX’s influence on their deal. Rafique stated, “Our partners wanted assurance that we wouldn’t end up like FTX. So, rather than individually responding, we introduced them to our proof of reserves.”
Proof of Reserves, a verifiable dataset demonstrating that an exchange holds the necessary liquid assets to cater to customer withdrawals, has gained paramount importance in the aftermath of the FTX fiasco. For Manchester City, this assurance was crucial.
“They were highly critical of us, so passing their litmus test is a real validation for us,” Rafique added. This successful assessment has positioned OKX favorably, aligning them with one of the most prosperous brands in the football world today.
