BOSTON, MA – JUNE 16: Andre Iguodala #9 of the Golden State Warriors reacts during his introduction before Game Six of the 2022 NBA Finals at TD Garden on June 16, 2022 in Boston, Massachusetts. Note to User: User expressly acknowledges and agrees that, by downloading and/or using this image, User is agreeing to the terms and conditions of the Getty Images license agreement. (Photo by Elsa/Getty Images)
Andre Iguodala is among the slew of NBA players involved in the cryptocurrency industry, but his losses of at least $1 million in the wake of the FTX crash should highlight the risks associated with the industry.
Many professional athletes have ventured into the still somewhat mysterious world of cryptocurrency. The NBA in particular has had many superstars sign sponsorship deals with various crypto companies.
Golden State Warriors players, perhaps due to its proximity to Silicon Valley, have closer ties with many players in the crypto industry than other teams. Earlier this year, Klay Thompson and Andre Iguodala agreed to receive a portion of their salary in bitcoin, the original and primary means of trading the digital currency.
The NBA and FTX Breakdown
FTX is a cryptocurrency exchange that has gained popularity in the past few years. I’ve invested heavily in advertising this past year, and I’ve used the NBA to accelerate that growth. Steve Curry endorsed the trading platform. FTX also paid about $135 million for the naming rights to the Miami Heat arena.
But with markets generally slowing over the past year, cryptocurrencies have been hit particularly hard. Many of the startups that invested heavily in the boom years were also left holding the bag when the cryptocurrency crashed.
Embroiled in scandal and neglect, the collapse of FTX threw the NBA into chaos. It not only put the Heat’s stadium rights into question, but also brought to light stars like Steve Curry who is closely associated with the stock exchange.
Andre Iguodala on cryptocurrency losses
In the aftermath of the cryptocurrency crash, massive fortunes have been erased around the world. However, recent reports said that Andre Iguodala who earned part of his salary in bitcoin lost at least $1 million this season.
He’s not the only pro paid like this, so it’s likely that similar incidents have occurred across the NBA.
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