Crypto lender Amber Group terminated a $15 million deal with Chelsea FC.
The company also announced reducing its workforce by 40%.
Several companies are experiencing the burnt of the fallout of FTX.
The crypto exchanges and their users. As a result, several exchanges are experiencing a liquidity crisis, resulting in massive layoffs and the termination of multiple deals.
In line with this, Aisa’s leading crypto trading and lending firm Amber Group announced the termination of a million-dollar deal with Chelsea F.C. The deal between the two parties was officially announced in May 2022.
Amber Group is a Hong Kong-based leading digital asset company operating around the clock and around the globe. The company was founded in 2018 by a group of members from Morgan Stanley Traders. In February, the company raised $200 million at a valuation of $3 billion. The company is currently struggling with a liquidity crisis.
Several crypto companies have begun sponsoring sports teams in the past few years. In May 2022, Amber Group and Chelsea F.C. announced an official sponsorship deal.
As per the partnership deal, the company’s logo, WhaleFin, would be shown on the team's jersey sleeves. The sponsorship agreement is said to be worth around $25 million per year.
However, reports noted that due to market circumstances and the mounting burden of the crypto winter, the company officially terminated the deal with Chelsea F.C. Along with the deal's termination, the company also revealed plans to lay off 40% of its current workforce.
As per reports, the lending firm is also planning to reduce its currency workforce by 40%. The company currently has a workforce of 1100 employees.
The actions taken by Amber are the most recent indication of the weakening outlook for cryptocurrencies in the aftermath of the FTX collapse.
On-chain analysts believe that the Amber Group may follow in the footsteps of Alameda Research, the trading firm linked to FTX that went bankrupt last month. A recent report also noted that Amber Group has only $9.46 million in assets.
What do you think, will Amber Group encounter similar challenges as Alameda Research, or will it be able to recover its losses soon? Share your views in the comment section below.
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