Many athletes are in losses after opting to receive a paycheck in cryptos like Bitcoin (BTC).
YEREVAN (CoinChapter.com) – Cryptocurrencies like Bitcoin (BTC), as well as nonfungible tokens (NFT), have grown in popularity. Many sporting clubs, athletes, and fans are turning to crypto. However, the recent dip in the crypto market and cryptocurrency price has put many athletes in losses.
While teams from various sports types have signed partnership and sponsorship deals with Web3 projects, many athletes have opted to be paid in crypto. More sportsmen and sportswomen consider ditching fiat currency for crypto alternatives.
Club fan tokens have also taken off over the months. Ever since they became popular, one company, in particular, Socios, has dominated the market. Several big names in European football have partnered with Socios to release their fan tokens. These include Arsenal, Manchester City, Everton, Juventus, Aston Villa, AS Roma, Paris Saint-Germain, Leeds, etc.
Last August, Paris Saint-Germain’s official fan token, PSG, rallied after Lionel Messi joined the French club. Earlier this year, the platform signed Messi as its brand ambassador. The company also pays Messi a part of his payment in fan tokens.
In other news, legendary footballer David Beckham also jumped on the crypto and blockchain bandwagon. The former English captain launched his first NFT collection through DigitalBits. The company later announced they had cemented a deal with Beckham to be their Global Ambassador.
In January this year, cryptocurrency exchange Crypto.com roped in NBA legend LeBron James for a new partnership. According to a Twitter post by the exchange, it signed a deal with James’s nonprofit, the LeBron James Family Foundation (LJF) to “increase educational and workforce development.”
Some athletes drawing Bitcoin cheques amid the crypto market dip several athletes from a variety of sports increasingly favor crypto payments. Drawing salaries in Bitcoin (BTC) and other digital assets are big, especially in the National Football League (NFL).
Green Bay Packers quarterback Aaron Rodgers is one of the players to draw a portion of his salary in Bitcoin (BTC). Although relatively a latecomer to the crypto payment scene, he was very optimistic about the future.
“I’m excited about the future of cryptocurrency and am a big believer in Bitcoin… I’ve chosen to take a large portion of my salary in Bitcoin, thanks to the help of Cash App,”
Rodgers said in a statement.
Basketball stars and Golden State Warriors players Klay Thompson and Andre Iguodala also decided to receive part of their salary in BTC via Jack Dorsey’s Cash App.
In December 2020, the Carolina Panthers star Russell Okung opted to receive half of his $13 million in salary in Bitcoin (BTC). As a result, his club paid him about $6 million in Bitcoin. New York Giants running back Saquon Barkley also decided last year to demand 100% payments for all future endorsement deals in Bitcoin (BTC).
Moreover, Los Angeles Rams star Odell Beckahm Jr. announced last November he would take his $750,000 salary in BTC. The NFL legend also said he would give $1 million worth of crypto to fans.
Among soccer stars, former Arsenal left-back Kieran Gibbs revealed last month that he receives half of his wages in cryptocurrency. Gibbs, who now represents David Beckham’s Inter Miami CF, draws 50% of his salary in Bitcoin.
Cryptocurrency price crash puts athletes in losses
The recent crash in the cryptocurrency market has left many athletes bruised. While those who entered early drew healthy profits, they have lost most of it in the last few weeks.
As CoinChapter earlier reported, Jacksonville Jaguars quarterback Trevor Lawrence signed an endorsement deal with crypto investment app Blockfolio. According to Action Network, his $22,630,055 million signing bonus fell to as low as $9.3 million when the Bitcoin (BTC) price crashed.
Another star who ‘burnt his fingers’ is Rams receiver Odell Beckham Jr. When the year started, Beckham made headlines when his $750,000 pay fell to a mere $35,400, thanks to the BTC crash. However, that was in January, when the BTC price was above $35,000.
With the recent crash taking the BTC price below $30,00, one can only imagine his losses.
Meanwhile, former offensive tackle for the Carolina Panthers, Russell Okung is undeterred. Despite his losses, he is buying the dip and hoarding Bitcoin.
Okung made headlines in 2020 when he converted half his $13 million salaries into Bitcoin. His $6.5 million investment could be down to around $2.7 million.
With almost every investor reeling under losses, the crypto price dip has not spared the athletes either. While there are good days in the cryptocurrency market, nobody said bear markets don’t come.
“This story has been published by CoinChapter.com and the information contained in this article is for only informational purposes. It does not present any investment advice nor does it serve as a substitute for individual investment.”