The scope of the cryptocurrency market is no longer limited to secluded exchanges, as it draws individuals from diverse fields including sports legends like Tom Brady. A recent revelation in an essay by The Washington Post indicates that Sam Bankman-Fried had agreed to pay Brady and his then-wife, Gisele Bündchen a staggering $55 million and nearly $20 million respectively for merely 20 hours of their time annually over three years, as ambassadors for FTX.
It’s notable that Brady’s endorsement entailed receiving $30 million, primarily in FTX stock. To put into context, Brady’s earnings for his on-field performance were pegged around $30 million. Bankman-Fried, a non-sportsperson, built a friendship with Brady, an amusing combination that comprised “the class nerd and the quarterback.”
The financial collapse of FTX, however, brought about seismic changes. Not only did it derail Brady’s financial expectations by rendering the promised company shares worthless, but also took a toll on his personal life. He reportedly felt deceived and opted to sever the links entirely.
The catastrophe also brought to light alarming information about the handling of finances within the company. Reports suggest that Bankman-Fried had been unaware of the $8 billion in customer funds within his private fund, dismissing it as a “rounding error” due to their seemingly infinite resources.
The revelations encapsulate a fascinating tale of grand ambitions that met with a sobering reality check. While Brady and Bündchen found themselves caught in a financial whirlwind they didn’t initially foresee, FTX suffered a collapse due to a catalog of management failures and negligence. Foremost among these shortcomings was, presumably, the disregard for the massive customer funds, which Bankman-Fried seemed to diminish as unimportant.
By highlighting the tremendous investments made into celebrity endorsements, and their ratio to working hours, to the catastrophic financial downfall affecting those involved, the crypto world offers a lesson on the unpredictability and risks inherent in the market. Notably, caution and due diligence should be exercised, irrespective of the monumental potential promises or declarations of “infinite” funds.
Source: Cryptonews
