Are cryptocurrencies the greatest creators of wealth in the contemporary world? There could still be plenty of crypto enthusiasts out there who could say yes. These backers of digital currency are likely the ones who bought their assets cheaply and liquidated them to make profits when the time is right.
But for many, cryptos could also have been huge wealth destroyers. NFL star Trevor Lawrence is the latest in the list of crypto backers who have lost significant sums in the wake of the ongoing meltdown. Let’s explore.
What’s the buzz around Trevor Lawrence’s crypto investments?
Investing in cryptocurrency by Trevor Lawrence, one of the top NFL Draft picks of the year, had made headlines in early May 2021. According to reports, when quarterback Lawrence signed a contract with Jacksonville Jaguars last year, his entire signing bonus was parked in crypto-assets. He reportedly joined forces with a Blockfolio exchange that converted the bonus into assets including Bitcoin, Ether, and Solana.
According to reports, bonus money worth US$24 million was converted into cryptos. Before him, a few other NFL players like Sean Culkin would have also chosen to get paid in Bitcoin or other cryptos.
Read also: Professional athletes and clubs go gaga over cryptocurrencies
Trevor Lawrence’s Crypto Losses
It is easily understandable that any investment in Bitcoin in May last year must have resulted in massive losses, given the current price of Bitcoin. According to reports, Lawrence’s crypto portfolio is down over 60%.
Millions of dollars were wiped out in a year, which became the talk of the town. Ever since Lawrence’s investment using the Blockfolio platform made headlines, analyst-reported losses have also been making headlines. There is, however, no official statement from Lawrence yet. Moreover, the amount of money that was converted into cryptos in the last year is also an estimate.
Lesson for crypto fans?
Crypto prices can swing in any direction. Last year, the three cryptos that allegedly boosted the value of Lawrence’s portfolio. Solana was one of the top performers among thousands of cryptoverse assets.
But this year has been marked by extreme negative forces, which have led to heavy losses. Bitcoin, Ether, and Solana have all lost at least half of their value since the start of 2022. The crypto lesson here is that enthusiasts who liquidate their assets when the time is right can come out unscathed. How the feeling of “holding on for life” (HODL) will work in the longer term is a waiting game.
Data provided by CoinMarketCap.com
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At the end of the line
The crypto losses reported by NFL quarterback Trevor Lawrence could add to fears that are already prevalent in the crypto world. That said, Bitcoin has currently stabilized at US$20,000, after falling below US$18,000 a few days ago.
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