An NFT start-up venture spearheaded by Tom Brady, the NFL legend, seems to be shuffling its cards after a challenging year marked by bearish market forces, as reported by the New York Times. The revenue stream of the company, dubbed Autograph, had bared serious trials as it reportedly dwindled amid a larger market downturn in the digital assets arena.
Autograph, co-founded by Brady last year, surfaced with a vision of assisting celebrities in selling NFTs – a decentralized service highly coveted by fans. The start-up stood grounded as it raised $170 million in Series B funding at the dawn of the year. Regrettably, the tides turned swiftly as they’ve had to let go more than 50 employees, as corroborated by the Times and Insider reports in May.
Bearing the market tumble’s brunt, Autograph has now shifted its gaze toward aiding celebs in nurturing their fan loyalty. The company has strategically pivoted by shaving off some parts of its crypto lexicon from promotional materials, signalling a strategic departure from its original prototype.
The crypto-prestige of Brady has not been left unscathed, a by-product of his endorsement of the FTX, a now-bankrupt exchange. Brady’s affiliation with FTX, aside from being a brand ambassador, included accepting approximately $30 million worth of shares himself.
The fall of FTX has flung a shadow of suspicion over other celebrity endorsers like Gisele Bundchen – Brady’s former spouse – and the basketball phenom Stephen Curry. Investors of FTX are now purportedly suing these figures, alleging they were ill-informed. Autograph, caught up in this turbulent storm, has yet to comment publically on the situation.
This twist in the crypto tale is a stark reminder that the sprouting market of digital assets is immensely temperamental, thus demanding precise strategic planning and adept risk management. Despite its innovative allure, the digital asset market leaves little room for miscalculation or complacency, a lesson learned all too well by Autograph.
Source: Coindesk
