Coinbase and Binance competitor Crypto.com recently signed a long-term branding deal with combat sports league UFC (Ultimate Fighting Championship). The news of the deal sent Union Fair Coin (UFC) price soaring and before it reversed course sharply.
It appears that some investors thought the UFC coin is associated with the UFC-Crypto.com deal. UFC coin jumped more than 55 percent on July 8 following the UFC-Crypto.com deal announcement. It fell more than 15 percent on July 9 when investors realized the difference.
Currently, UFC coin doesn't have any association with the UFC sports organization, which could make it a direct beneficiary of the Crypto.com branding arrangement. However, some investors thought of it that way and rushed to buy it. Many investors started selling the stock after they learned that wasn’t the case.
What is the UFC-Crypto.com sponsorship deal about?
Crypto.com operates one of the most popular cryptocurrency exchanges in the world with more than 10 million users. Its listings include UFC coin, Dogecoin, and Shiba token. The exchange has secured global rights to put its logo on UFC fighter kits. According to CNBC, the arrangement will run for more than 10 years and might cost Crypto.com $175 million.
In return, Crypto.com hopes to ride on the UFC league’s popularity to reach more customers and hopefully make more profit. An increasing number of crypto businesses are turning to sports sponsorships to boost their brand awareness and take cryptocurrencies mainstream quicker. That bodes well for altcoins as more awareness could generate more investment interest and lift the valuations.
FTX Trading, a crypto exchange operator, has deals with the MLB and Super Bowl champion Tom Brady. Stormx, a startup that provides crypto cashback service, has partnered with NBA’s Portland Trail Blazers.
UFC sets its sights on crypto
The UFC league thinks that there could be a huge opportunity in crypto. It sees crypto as moving quickly and dynamic. Perhaps it could debut its own crypto token in the future. For now, investors seeking out a cryptocurrency with UFC in its name though not related to the combat sports organization have UFC coin.
UFC coin debuted in June 2020. It has a maximum supply of 21 million tokens. UFC token attained an all-time high of $0.63 in August 2020. At the current price of about $0.13, the altcoin has pulled back nearly 80 percent from its peak.
UFC coin price prediction
Many investors would have wished for UFC coin to be part of the UFC-Crypto.com deal. However, the altcoin is still worth a look for those seeking the next cryptocurrency that could explode.
In March, UFC coin plunged to what has persisted as its all-time low of $0.022. Investors who bought that dip have seen their money grow more than 530 percent even with the recent sharp pullback from the peak.
For investors seeking to know UFC coin's price prediction, the altcoin could double its current price before the end of 2021. For that to happen, the crypto needs to maintain a monthly growth rate of 15 percent from now on. Its gains over the past week have topped 30 percent.