When FTX crashed a month ago, it took everything with it, but the worst was yet to come. The failure of SBF’s FTX and its Alameda company has brought many companies to their knees, and Amber Group is the new addition on the tail. Amber Group is one of the leading platforms for crypto trading and lending, with thousands of employees and offices around the world.
News broke of the potential failure of the Amber Group and speculation that it would be the next FTX, but soon after the company’s CEO tweeted that the company was going about its “business as usual”. The speculation has stopped for now, but a recent revelation shows that the company is not doing its “business as usual”.
The Amber group
Amber Group is one of the most prestigious and well-known crypto companies. It is known for lending and trading. The company was founded in 2018 by former Morgan Stanley dealers. The company is estimated to have raised more than $200 million in February at a valuation of $3 billion. Earlier this week, Bloomberg reported that the company had halted more than $100 million in fundraising.
Amber Group and Chelsea FC
Recently, Bloomberg announced that Amber Group will terminate the sponsorship agreement with one of the renowned football clubs, FC Chelsea. It was a deal worth £20 million on an annual basis, and at the end of it the club would remove the WhaleFin company logo from their shirts. The decision comes in light of cost-cutting as the company faces a serious financial crisis.
The partnership began in May 2022 and it was decided that Chelsea would display the WhaleFin logo for the 2022-23 football season. However, due to financial problems, the company decided to dissolve the partnership through the courts, a source close to Bloomberg revealed.
Amber group and its cutting strategy
And not only that, the company planned a cutting strategy that would reduce the number of employees, eliminate retail stores and minimize additional costs. The total number of employees before the collapse of FTX was more than 1100, now it is reduced to 700, and the company plans to reduce it to only 400 people.
In addition, the company plans to move its headquarters to a more convenient location, as the current location is not very accessible. Additionally, to further reduce costs, employees will be required to work from home; only a small part of people will be able to work in the office.
Crypto companies and football clubs
The history of crypto companies and football clubs has been short but bitter. Many crypto companies have used football clubs for their promotion, but most of their partnerships have ended bitterly. The flurry of European club sponsorships came after crypto became universally accepted in the form of Elon Musk’s Tesla and Slater’s MicroStrategy.
The partnership between FC Internazionale Milano SpA and blockchain company DigitalBits was previously speculated to be terminated when DigitalBits failed to make payments to the prestigious Italian soccer team. But there are reports of renegotiations and revisions.
The market has been shaky since the beginning of 2022, but after the LUNA crash in May and the FTX crash in November, the year ended on a more devastating note. This could be the scariest year in the history of the crypto market, considering the crashes, financial crises, hacks and general market sentiment. This is a very crucial time for crypto, and if it survives, the future may belong to the crypto industry.