Andre Iguodala is among a slew of NBA players involved in the cryptocurrency industry, but his losses of at least $1 million in the wake of the FTX collapse should highlight the risks associated with the industry
Many professional athletes have ventured into the still-somewhat mysterious realm of cryptocurrency. The NBA in particular has had several superstars sign sponsorship deals with various crypto firms.
The Golden State Warriors players, perhaps because of its proximity to Silicon Valley, have closer ties to many players in the crypto industry than other teams. Earlier this year, Klay Thompson and Andre Iguodala agreed to receive part of their salary in bitcoin, the original and still primary vehicle to trade digital currency.
The NBA and the FTX Collapse
FTX is a cryptocurrency exchange that had gained prominence in the preceding few years. It invested heavily in advertising in the last year, and it used the NBA to accelerate this growth. Steph Curry endorsed the trading platform. FTX also paid about $135 million for the naming rights to the Miami Heat’s arena.
But as markets generally have cooled over the past year, cryptocurrencies have been hit particularly hard. And many of the startups that invested heavily in the boom years were left holding the bag when digital currencies went bust.
FTX’s collapse, embroiled with scandal and negligence, has thrown the NBA into disarray. It has not only put the Heat’s stadium rights into question, but it has also placed the spotlight on stars like Steph Curry closely tied to the exchange.
Andre Iguodala at cryptocurrency losses
In the wake of the crypto collapse, massive fortunes have been erased across the globe. Recent reporting, however, stated that Andre Iguodala who had received part of his salary in bitcoin had lost at least $1 million this season.
He’s not the only professional to receive his salary in this form, so it’s likely that similar incidents have taken place across the NBA.