An Unexpected Twist: Taylor Swift’s Failed Partnership with FTX
– Pop icon Taylor Swift was set to sign a $100 million sponsorship deal with FTX crypto exchange.
– Swift withdrew from the agreement due to concerns about the unregistered securities status of cryptocurrencies.
– However, it was revealed that Swift did in fact sign the deal, but FTX founder Sam Bankman-Fried opted out, leaving Swift frustrated and disappointed.
– The signed agreement was sent to Bankman-Fried’s inbox but remained unanswered for several weeks.
– Other celebrities, such as Tom Brady and Gisele Bündchen, endorsed FTX and faced the consequences when the exchange filed for bankruptcy.
Swift’s Lucky Escape from a Potential Disaster
– Swift’s astute decision to withdraw from the FTX deal was initially praised, but it was later revealed that she had signed the agreement.
– Bankman-Fried ultimately decided not to proceed with the deal, leaving Swift and her team frustrated and disappointed.
– Swift’s father’s experience in finance was thought to have influenced her decision.
– The details of Swift’s dealings with Bankman-Fried were not known by attorney Adam Moskowitz, who is leading a class-action lawsuit against celebrities who endorsed FTX.
FTX’s Rejection of Swift’s Deal
– A source revealed that the signed agreement between Swift and FTX was sent to Bankman-Fried’s inbox but remained unanswered for weeks.
– A group of FTX executives convinced Bankman-Fried not to proceed with the reported $100 million deal.
– Swift’s team had engaged in six months of intense negotiations before the deal fell through.
– The source requested anonymity due to ongoing federal and bankruptcy proceedings related to FTX.
Celebrities Caught in the FTX Quagmire
– Swift was not the only celebrity to endorse FTX, as several high-profile figures, including Tom Brady and Gisele Bündchen, also hopped on the bandwagon.
– FTX filed for bankruptcy in November 2022, and Bankman-Fried is facing federal charges, including fraud and campaign finance violations.
– Three other FTX executives have admitted guilt to federal charges and are assisting the government in their case against Bankman-Fried.
Hot Take: A Lesson in Celebrity Endorsements and Cryptocurrency
The failed partnership between Taylor Swift and FTX serves as a cautionary tale for celebrities considering endorsements in the cryptocurrency space. While Swift managed to avoid the pitfalls of FTX’s downfall, other celebrities were not as fortunate. This incident highlights the importance of thorough due diligence and understanding the risks associated with endorsing cryptocurrency projects. It also underscores the need for clearer regulations and guidelines to protect both celebrities and their fans from potential scams and fraudulent activities in the crypto industry.
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