Cryptocurrencies penetration into sports.
We all know that cryptocurrency has been making noises in various industries all across the globe. In a new development, it is known that Cryptocurrency has also penetrated the sports industry. Many NFL players requested their salaries and bonuses to be given in the form of cryptocurrencies. Owning the crypto trend all around the world, it is easy to assume that the players are also looking to make a move in the crypto market and want to take risks and reap all the possible benefits of it.
Crypto Market Crash and its impact on NFL players.
Crypto market crashed on May 12 2022, which saw the market wipe out billions of dollars in thin air. Investors all over the world lost billions and billions of money in the market crash. Terra USD was the most effected cryptocurrency in the market crash. Since, the NFL players had also opted for the payment of their salaries in cryptocurrencies, they also had to loose out on millions of dollars due to the volatile nature of the market.
Let us take a look at a tweet here below:
Pro athletes were among the first to ride the crypto wave, converting their salaries and signing bonuses into Bitcoin and other currencies.
Now, investments by stars like Trevor Lawrence could be down by more than $10 million 📉@MMcCarthyREV has more ⤵️
— Front Office Sports (@FOS) May 21, 2022
Trevor Lawrence a pro Athlete had insisted that he receives his salaries and bonuses in bitcoins and other reputed cryptocurrencies. He took the risk of entering the volatile crypto market. But after the market crash, if the number estimates are to be believed, Lawrence’ Jaguar might have lost 10 million dollars in the quarterback. Last year, when he made the deal, he was the number one pick of the year’s draft and he went on to make a deal with blockfolio a crypto exchange, so they could convert his bonus which amounted to $22,630,055 in crypto. After the crash the bonus was reduced to $9.3Million
There are many such cases of NFL players suffering from the cryptocrash. Russel Okung from the Carolina Panthers made a deal of converting half of his salary to bitcoin valuing $6.5 Million and then the value was reduced to $2.7 Million due to the market crash. Another player Saquon Barkley from New York Giants lost 59% of his investment in a week after the crypto crash.
It is true that crypto has penetrated across all the industries in the world. But for athletes, going by the trend investing in crypto has backfired big time. Considering the inconsistent nature of their career, the risk taking aspect of the crypto needs to be analysed critically by the sports persons before they make a decision of converting their salaries and bonuses into cryptocurrency.