In recent years, the Bitcoin market has experienced significant growth. This market has everything from digital art projects like NFTs to assets like Bitcoin and Ethereum. As long as there’s an avenue to make money, people—especially famous figures—flock in.
While these assets can make money for their owners, losing them all is possible. This piece lists some celebrities with the worst crypto investment pitfalls.
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Logan Paul
Last year, when NFT sales were at their peak—in the millions of pounds—the famous YouTuber, Logan Paul, got on board. Apparently, he lost a pretty penny because he was too eager.
The celebrity said the NFT he paid $623,000 (£558,000) for is now only worth $10 (£9). This is hardly enough to buy a pint of beer at a pub in London. He spent approximately $2.5 million (£2.24 million) last year, amassing a massive collection, of which NFT is just one part. The value of this collection has dropped by 60% from its peak, according to recent estimates from NFT valuation site DappRadar.
Stephen Curry
Stephen Curry, a four-time NBA champion and current leader in 3-point shooting, is widely considered the league’s all-time great shooter. However, his contract with FTX did not benefit monetarily from his performance off the court. It was bad news for Stephen Curry’s NBA brand.
Curry received payment in the form of shares while acting as a representative of the company’s brand. To entice additional investors, the exchange signed arrangements with several sportsmen. The four-time NBA champion even donned a mime outfit for one commercial.
However, that marked the beginning of the sportsperson’s financial misfortunes with the exchange. Regrettably, FTX declared bankruptcy around the end of 2022. After the company’s collapse, Curry lost millions of dollars due to his investments in the exchange.
Thankfully, Curry will overcome this financial setback because of his fame, endorsement deals, and NBA contract. In addition to financial damages, Curry and other famous endorsers will face investigations after lawsuits were filed against them for endorsing FTX.
Neymar
Following in the footsteps of other famous figures, Neymar reportedly spent £900,000 buying two NFTs from the Bored Apes Yacht Club. Famous people and crypto enthusiasts often flaunt their understanding of the crypto realm and membership in the popular set using these “Ape” NFTs. These NFTs are digital images of monkeys with different characteristics, including hair, facial features, and emotions.
Sadly, Neymar has paid a high price for membership in this select group. According to DappRadar, his two apes ($480,000 and $570,000) are currently only worth $153,000 and $171,000, respectively. Thus, the player stands to lose almost $700,000 on paper, as both NFTs are considered failures.
Matt James
In 2021, Matt James collaborated with BlockFi, a cryptocurrency startup, frequently discussed cryptocurrency in his interviews and tweets. Following that, the firm had difficulties but emerged stronger thanks to an increased credit line. However, investors have been bearing the brunt of a 30% price drop that began in 2022.
KSI
Cryptocurrency has long been a stock picker for British musician and YouTuber JJ Olatunji, better known by his stage name, KSI. He previously said cryptocurrency would be an important part of the future monetary system.
Just as the LUNA cryptocurrency token began to crash in May, the rapper staked $2.8 million, hoping it would soon recover. Since the token finally crashed to almost nothing, KSI lost a pocketful of millions of pounds. It seems his investing instincts are, shall we say, poor.
Gwyneth Paltrow
Famous for her roles in Se7en, Iron Man, and The Talented Mr. Ripley, the Hollywood actress has always had an entrepreneurial spirit. Her wellness and lifestyle brand, Goop, launched in 2017, helped demonstrate this further.
Gwyneth dipped her toes into NFT’s pool by buying a Bored Ape NFT. She became a prominent figure among the female celebrity crypto influencers. She joined Mila Kunis and Randi Zuckerberg at the BFF crypto summit to encourage more women to pursue careers in cryptocurrency and NFTs.
While it’s great that more women are getting involved, investors should be wary of the NFT ventures. This is especially true in cases where celebrities are endorsing certain assets.
Andre Iguodala
Andre Iguodala was another Warriors player who lost much money dabbling in cryptocurrencies. Iggy is a successful investor who has invested money in several great businesses, including Zoom, Twice, Allbirds, Casper, and countless others. However, Bitcoin investments did not fall into that category.
Once again, there was a cautionary tale with an NBA twist involving cryptocurrencies. Iggy was one of several NBA players who chose to take a portion of their $2 million paycheck in Bitcoin, including Klay Thompson of the Warriors.
Reports indicate that the 2015 NBA Finals MVP lost around $1.3 million due to this. Regrettably, this demonstrates that even experienced investors are susceptible to substantial financial losses in a volatile market like cryptocurrency. Several crypto missteps have involved NBA players, but this one may have been the most unexpected.
Steve Aoki
The electronic dance music (EDM) scene is abuzz with Steve Aoki’s wild singles. On the other hand, he is also well-respected in the cryptocurrency community for his collection and creation of NFTs.
While his music has been a huge success, Aoki’s investments have not been as fruitful. The value of his eight Bored Ape NFTs and over a hundred NFTs has dropped dramatically.
According to estimates provided by DappRadar, one of the “Doodles” NFTs he purchased in January for approximately $346,000 is now only worth $42,000. Even though his diversified portfolio helped him minimize the losses, this is still the case.
Mark Cuban
Mark Cuban, a multibillionaire investor, claimed to have traded a DeFi token that plunged to zero in a single day. Titan, the Iron Titanium Token, was an algorithmic stablecoin developed as part of the Iron Finance project.
Rekt News reported that huge whale accounts sold their Titan holdings. This caused a panic sale and a precipitous decline in the price to almost zero from $60.
The extent of Cuban’s losses and the date of his trade exit were unknown. According to his interview with Bloomberg News, he expressed his displeasure with the trade; however, Titan was a small portion of his cryptocurrency portfolio.
Michael Jordan
Looking at his profits on and off the court, Michael Jordan is undoubtedly the most successful basketball player in history. He is considered the greatest player of all time on the basketball court and became the league’s first player to earn a billion dollars. It is unsurprising that Michael Jordan has a big net worth, given his numerous NBA titles and extensive endorsement deals.
Even Jordan, famous for his involvement in the cryptocurrency market, was not immune to losses. Jordan unveiled his 6 Rings set of non-fungible tokens in March 2022.
After the FTX empire fell, the value plummeted a few months later. The result was a net loss of 92%, or almost $10 million, for His Airness. Even if this venture bombed, Jordan, like the other NBA players on our list, still has plenty of other profitable income sources.
Conclusion
Ultimately, the cryptocurrency industry has been through its share of ups and downs. Not even the wealthiest people can avoid the traps that this unpredictable market throws at them. Some celebrities have had their fortunes ruined by foolish endorsement deals, poor financial decisions, or outright fraud. This includes Michael Jordan, Mark Cuban, KSI, Steph Curry, Neymar, Matt James, Gwyneth Paltrow, Andre Iguodala, Steve Aoki, and Logan Paul.
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These high-profile blunders show that even famous people can make mistakes in the digital world. It’s important for everyone, even celebrities, to keep themselves educated and cautious before entering the crypto world. This piece doesn’t suggest that fame and crypto don’t go together; it’s just a reminder that no one is perfect.
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