The cryptocurrency craze has been fascinating to many for some time. However, most people do not understand that the higher the price of the crypto, the more people sell it, and the less it is worth. The value of cryptocurrency is pegged to its desirability. Recently, the sell-off in the crypto market accelerated causing the price to crash. Ether dropped to about $897 and bitcoin dropped to about $17,749.
The price of crypto is currently at its lowest, with many fearing that their profits may disappear overnight. If you are a crypto gambler, you probably need to consider the best offshore sportsbooks to maximize your wins despite the crypto crisis.
In total, more than $300 billion was lost after the crash, and because of this, many people were affected. Some affected people are sports players, probably among the worst hit by the crisis.
Here are some of the reasons why sports players are freaking out.
The Crypto Market Crash Affects Sports Sponsorships
Sports is heavily invested by many companies that are in the crypto industry. The companies sponsor teams, some make sports players’ faces of crypto brands, leagues have formed partnerships, and some teams have received naming agreements.
Many players and teams have formed partnerships with crypto because of the alluring future promise it offers. Sports players view this as an investable and accessible asset. However, these partnerships have come into question following the crash.
Crypto companies are looking for ways to sustain their operations. Therefore, in addition to cutting down their staff and trimming costs, many are pausing commercial deals with sports players and firms.
Some Players Converted Their Pay to Bitcoin
Some players like Odell Beckham Jr. had converted their pay to bitcoin. In 2021 Beckham mentioned that he was converting his 2021 pay to bitcoin. The problem is that his salary of $750,000 made in November 2021 was $401,500 by January 2022.
Other sporting players who reported to have lost the majority of their salary following the crypto crash include;
- Ifunanyachi Achara plays for major league soccer (MLS). Ifunanyachi invested in bitcoin $30,283 and lost 63.1% of the investment.
- Trevor Lawrence plays for the National Football League (NFL). He invested $24 million in bitcoin, Solana, and Ethereum and lost 62.7%
- Alex Crognale plays for United Soccer League (USL). He invested $54,458 in bitcoin and lost 62.4%.
- Sean Culkin plays for the National Football League (NFL). He invested $920,000 in bitcoin and lost 61.6% of his investment.
Some players partnered with crypto companies. Trevor Larence received a partnership for block folio and was paid $34 million after signing the deal. However, following the crisis, his pay was reduced to $12 million.
Players Invested in Crypto
Sports players like Patrick Mahomes, who plays for the Kansas City Chiefs, are looking to sell their NFTs. He launched a virtual art gallery called “Museum of Mahomes,” where he sold his digital art pieces.
During this period, the value of bitcoin had plunged to $31,000 from $65,000, and many significant investors were worried that there was a probability of there being no fix.
Other players like Trevor Lawrence mentioned that the crypto crash caused them to lose $AUD22million.
Final Word
The cryptocurrency was initially described as stable. Many people, including sports players, invested in it. Many crypto companies support sports players and sporting teams.
Sports players are currently freaking out because of the crypto market crash. Many of them have lost millions of their investments following the crash. The majority of sponsors are either pulling out or reducing their sponsorship deals.
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