This past spring’s crypto meltdown is stirring a lot discourse around the asset class. As bulls rush to defend the business and bears become louder in their attacks, the digital money market is becoming one of the most heated arguments in the country. As the discussion drags on, critics are also turning to one NFL star to hammer home their argument. They think the Trevor Lawrence crypto contract demonstrates that cryptocurrencies are still not prepared to be used as a form of payment.
Trevor Lawrence is one of the current high-profile players in the NFL. Lawrence had a high draft stock after playing NCAA football at Clemson University and guiding them to a national championship. When Lawrence ultimately declared for the league draft, many anticipated the quarterback to net the first overall choice.
As the NFL draft drew last year and crypto ventures began to make their move on the U.S. market, Lawrence also became a high-value sponsorship prospect. Before even obtaining the first overall pick, the athlete negotiated many deals. Perhaps the most talked-about — and certainly the most contentious — was his sponsorship contract with Blockfolio.
Lawrence isn’t the first athlete to take his wage in crypto, but he’s likely the most high-profile. The athlete got a signing bonus of almost $24 million after agreeing to the contract and being selected with the first choice. Blockfolio, as part of the arrangement, turned the bonus to bitcoin and put it in Lawrence’s wallet. Looking back on the deal now, though, detractors have all the proof they need to strike down crypto as a transactional currency.
Trevor Lawrence Crypto Contract Ages Poorly, Showing Massive Losses
The Trevor Lawrence crypto contract news is nearly a year old now. However, detractors are returning to the story to cite the figures as proof of a severe challenge crypto bulls confront by seeking to expedite crypto adoption.
Specifically, The Spun — an offshoot of Sports Illustrated — is now looking back on Lawrence’s agreement to evaluate how it’s maturing. And as it turns out, it’s doing very horribly. The athlete’s hefty signing bonus has lost a substantial amount of value as a result of the crypto market’s volatility. In sum, the investment has lost more than 62 percent of its value.
The assets in the wallet currently equal slightly about $9 million. For comparison, the signing bonus for the 14th overall choice in the same NFL draft was $9 million. These losses equal to Lawrence dropping 13 choices farther down in his draft class.
Retrospectives on the sponsorship arrangement led back to one basic point; there’s not enough stability in the crypto market to support the assets as payment.
Regardless of his losses, Lawrence is still earning millions upon millions of dollars. But it’s also safe to say Lawrence is far better off financially than the average retail investor. It’s even more worrisome, though, to see multiple solutions springing up mixing bitcoin and crucial investing choices, all oriented at average investors.