Major League Baseball team, the Nationals, is still promoting the collapsed Terra ecosystem. This was evidenced during the team’s first home game earlier this week, where its official stadium, Nationals Park, had Terra’s branded seats and a huge sign outside the stadium.
Terra entered a $40 million five-year deal with the Nationals in early 2022. Part of the deal included establishing Terra Club, an exclusive space in the Nationals Park stadium designed for fans willing to splash out $300 and above per ticket.
It is worth highlighting that it was Terra DAO (decentralized autonomous organization) that struck the deal with the team.
Terra’s stablecoin UST lost its peg in May 2022, an incident that saw its value drop to zero and brought LUNA down as well. As a result, investors lost billions of dollars. In addition, the implosion caused the prices of other cryptocurrencies to plunge significantly.
The Nationals continued to promote Terra a few days after the collapse by sharing on its Twitter account a video clip presented by Terra titled ‘Crypto 101.’
Other Sponsorship Deals in Sports
The Nationals’ decision to honor the deal it entered with Terra despite collapsing is completely opposite to how Major League Baseball handled FTX’s partnership deal when it crashed. The fallen exchange was the main sponsor of the MLB team, the Patches. However, MLB ended the deal a few weeks after FTX filed for bankruptcy. As a result, the Patches have not returned this season.
FTX, Voyager, and Terra are crypto companies that collapsed in 2022 after entering sponsorship agreements with various sports organizations. But despite the bear market, crypto businesses have not stopped signing such deals. Exchange Kraken announced a partnership with Formula 1 team Williams Racing earlier this week, while OKX extended its existing deal with McLaren.
Authorities Arrest Terra Founder
Meanwhile, as the Nationals continue marketing Terra, the founder of this ecosystem Do Kwon, was arrested recently in Montenegro after spending months running from the authorities. In addition, the US Securities and Exchange Commission charged Kwon with alleged securities fraud in February.
