Crypto: Athletes like Tom Brady and Odell Beckham took crypto as compensation. As of now, that’s backfiring.

by | Dec 7, 2022 | Stock Market

As cryptocurrency gained more popularity in recent years, several athletes got into the digital assets space by accepting some of their salary or endorsement income in crypto. And many of those crypto holdings are likely to be worth much less than when the athletes originally got involved. Here’s a look at some high-profile athletes who at this point have likely lost out on a lot of money because they opted to get paid in crypto.

Odell Beckham Jr. Super Bowl champion and ex-Los Angeles Rams wide receiver Odell Beckham Jr. made headlines in November 2021 after announcing he would be converting his NFL salary into bitcoin 
BTCUSD,
-1.13%.
As you might have guessed, Beckham’s $750,000 salary is worth a lot less now. The Action Network reported that the deal was executed when a bitcoin cost $64,158. As of Wednesday afternoon, bitcoin prices were hovering just above $16,000, a 75% decline from the time of Beckham’s deal. Based on Wednesday’s bitcoin prices, and assuming that Beckham converted a lump sum of $750,000 into bitcoin when the deal was made, that salary would now be worth about $185,250, and, despite the drop in value, he would still have to pay taxes on income as provided to him at its $750,000 value. See also: Cristiano Ronaldo will reportedly join Saudi club Al-Nassr for historic $210 million per season Because it is not known if Beckham moved the $750,000 sum all at once into bitcoin or spread it over multiple purchases, it’s difficult to pinpoint an exact dollar figure for Beckham’s losses. What can be reliably determined, though, is that as of now Beckham would have been better off accepting his salary in U.S. dollars.Tom Brady The Tampa Bay Buccaneers quarterback was given an equity stake in crypto exchange FTX back in 2021, in addition to receiving some crypto. Brady served as an ambassador for the company and also starred in several TV commercials for FTX. “It’s an incred …

Article Attribution | Read More at Article Source

Share This