Some 100 million Americans will watch the Super Bowl on Sunday. That means 200 million eyeballs on the 30 second spots that are going for as much as $7 million a pop, a record, according to NBC Universal.
Among them are three cryptocurrency firms, Coinbase Global (COIN.O), Crypto.com and FTX. If history is any guide, that’s an ominous sign.
In 2000, roughly a dozen dotcom firms took out Super Bowl ads. About half went bankrupt within two years, including the iconic Pets.com nine months later.
Those spots averaged $2.1 million, says Ad Age. Adjust for inflation, and that’s $3.5 million, or half the price some firms are paying this year.
The good news is that some of the crypto firms are on stronger footing. Coinbase might earn $1.7 billion this year, according to Refinitiv figures.
But crypto, like the dotcom boom, is based on speculation. If there are any signs of overexuberance read more , perhaps buying the Super Bowl spot is the most concerning one.
Read full story on Reuters