Tom Hoffarth / FartherOffTheWall.com
How much are you invested yet – financially, emotionally, intellectually or otherwise — in Crypto.com?
Considering it’s still fresh in our minds how the cuddly super-sized arena in downtown L.A. just abandoned a loyal partner to have its naming rights changed, it might be penny-wise to see how miscalculations are heating up in Miami these last few weeks.
The FTX Arena, home of the NBA’s Miami Heat, needs a quick fix.
A crypto currency company that just last year pledged Miami-Dade County some $135 million to add its name to the marquee for 19 years, plus give $5 million toward local causes concerning a reduction of gun violence, is now bankrupt.
It gave the county some $20 million up front for the first two years and the check has cleared apparently. A $5.5 million installment is due in less than two months.
Talk to the CEO, who resigned amidst a massive missive of social media mea culpas.
The custodians who run the place — it opened in 1999, same year as L.A.’s Staples Center, with the seemingly secure American Airlines Arena title in place — said they’re immediately dropping the FTX name and are “extremely disappointed.”
The people making these decisions shall remain nameless.
Due diligence and some common sense in how dollars are created out of thin air and then dispersed might be helpful.
“Crypto collapses have become par for the course,” Will Gottsegen writes in The Atlantic. “But now, crypto feels less ready for the mainstream than it has in years. Even as crypto slunk into a bear market in recent months, there was still the dream of crypto as it was originally conceived in the aftermath of the 2008 financial crisis: Part of the blockchain’s raison d’être lay in cutting out greedy bankers and creating greater trust between transacting parties. Now, in 2022, the crypto markets are controlled by an industry that’s proved time and time again just how similar to the existing financial system it really is.”
There’s that, and there’s the advice we once got from broadcaster Al Michaels, famous for his financial acumen. He suggested whenever a company in your investment portfolio announces it has spent millions in its marketing budget to buy the naming rights to some sports facility, that’s the moment you sell the stock. They are likely in over their skiis, and the investment will never pay off.Continue reading “The writing on (and off) the wall: What kind of foundation is L.A.’s Crypto.com Arena on as one sizes up what’s going on in Miami?”