After spending “hundreds of millions of dollars” on Super Bowl campaigns, sponsorship deals and advertisements, most cryptocurrency companies cut their marketing spend. The Wall Street Journal writes about it.

The reason for the overhaul was the market downturn and the increased attention of regulators after Terra’s collapse.

Since November, when Bitcoin hit the ATH threshold of $69,000, total ad spend by key industry players has dropped by 90% or more. These figures were given by a representative of the research firm Sensor Tower Dennis Yeh. It analyzed data from various platforms, including Facebook, YouTube, and Hulu.

According to iSpot.tv, a similar situation is observed in the traditional TV and broadcast services segment. Tyler Babin, the firm’s senior brand analyst, added that the absence of major sporting events such as the Olympics partially contributed to the performance.

Activity in the field has been reduced by Crypto.com and Gemini Trust. The first set aside $2.1 million for Super Bowl commercials in May, after spending $40 million in January. Last month he spent $478,000 in the second month – eight times less ($3.8 million) than in November.

Bitcoin exchange Coinbase was no exception after negative results for the first quarter. The company’s focus shifted to the TV channel – after spending $1.5 million in November, spending soared to $2.7 million due to the placement of a new ad mocking bitcoin’s demise promise.

FTX’s marketing spend increased. Digital and TV advertising spending rose from $3 million to $5.2 million in November. Cryptocurrency exchange hired Shaquille O’Neal as ambassador.

eToro’s spending remained roughly the same as in November ($1 million). Its representative explained that this is due to the key importance of the US market for the development of the company.

“It will take a combination of advertising and other forms of communication to restore a shattered image of the stability of investing in cryptocurrencies.” said Andrew Frank, vice president of Gartner and research firm.

Another challenge for crypto companies was the actions of regulators. In May, the Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau announced a measure aimed at firms that claim to offer deposit protection.

In June, the SEC launched a public campaign warning of the risks for investors who rely on celebrity opinions.

Grayscale Investments CEO Michael Sonnenschein said the industry needs to shift its focus to educating consumers about the benefits and risks of an asset class still emerging. A similar approach applies, in particular, the Voyager Digital LLC mentioned in the WSJ.

Binance CEO Changpeng Zhao said that the crypto winter is the right time to hire new employees and develop the business further.

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