Celebrities Paid Handsomely to Promote FTX
Former NFL quarterback Tom Brady received a whopping $55 million to appear in sports commercials for the now-collapsed cryptocurrency exchange FTX. Another celebrity athlete, basketball star Stephen Curry, was reportedly paid $35 million for his promotion of the exchange.
Details of the Lucrative Deals
The information about Brady and Curry’s exorbitant payments from FTX was revealed by author Micheal Lewis, who claims to have seen confidential documents supporting his claims. As part of his agreement with FTX, Brady was only required to dedicate 20 hours of his time each year for three years.
Brady’s Losses and Fallout
Despite receiving millions of dollars’ worth of FTX stock as payment, Brady is believed to have suffered a $30 million loss when the exchange collapsed. Similarly, his former wife Gisele Bündchen lost $18 million due to her FTX stock becoming worthless.
Sam Bankman-Fried’s Connection with Brady
Author Lewis described the budding friendship between Sam Bankman-Fried (SBF), the founder of FTX, and Brady. Despite SBF not being particularly interested in sports, the two seemed to get along well. However, after FTX’s sudden collapse, an enraged Brady felt deceived by Bankman-Fried and wanted nothing to do with the exchange anymore.
Hot Take: The High Price of Celebrity Endorsements
Crypto exchanges are willing to pay exorbitant amounts to high-profile celebrities like Tom Brady and Stephen Curry for their endorsements. While such partnerships can boost visibility and credibility for these platforms, they also come with significant risks. The collapse of FTX highlights the potential financial losses that celebrities may suffer, despite their lucrative deals. It serves as a reminder that investors should exercise caution and conduct thorough research before engaging with any cryptocurrency exchange or investment opportunity.
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