Many people on social media are speculating about Jacksonville Jaguars quarterback Trevor Lawrence’s crypto losses. People are claiming that Lawrence lost over $15 million. Here’s what you need to know about Lawrence’s losses on his crypto investments.
There has been a terrible sell-off in digital assets. The total cryptocurrency market cap, which surpassed $3 trillion at its peak in November 2021, is now below $1 trillion. Most crypto assets, including Bitcoin, the biggest crypto by market cap, have tumbled. Bitcoin recently fell below $20,000 before recovering slightly. Many crypto experts are now predicting a long crypto winter.
Crypto investors have made huge losses.
Over the last eight months, crypto investors have collectively lost over $2 trillion. For many investors, who had bet their life savings on cryptocurrencies, the crash has been a nightmare. Social media is full of stories about how gullible investors lost all their savings amid the crypto crash.
Prudent financial planning would warrant limiting your exposure to an asset as risky and volatile as cryptocurrencies. The allocation can depend on the risk appetite, but for most investors, an allocation should be limited to below 5 percent.
Trevor Lawrence’s crypto losses are debatable.
There's a debate about how much money Lawrence has lost on his crypto investments. SB Nation tweeted that Lawrence has lost $15 million in cryptos. It said that Lawrence invested his entire signing bonus with the NFL in cryptos and the original investment of $22.9 million is down 60 percent and is now valued at $9 million.
BetOnline also made similar claims and tweeted that Lawrence has lost 62.7 percent of his $24 million crypto investment. It added that other NFL players like Russell Okung, Andre Iguodala, and Saquon Barkley have also lost millions of dollars in cryptocurrencies.
Has Trevor Lawrence really lost $15 million in cryptocurrencies?
Several media reports and individuals are debating whether Lawrence really lost $15 million in cryptocurrencies. Huddle Up founder Joe Pompliano has tweeted that claims of Lawrence losing $15 million in cryptos aren't accurate.
According to Pompliano, Lawrence didn't invest his entire NFL signing bonus into cryptocurrencies but only the signing bonus from his endorsement deal with Blockfolio, a crypto app. In another tweet, Pompliano said that the total deal with Blockfolio “was probably low seven figures, and a small 'signing bonus' was paid in crypto.”
Celebrities jumped on the crypto bandwagon.
We don’t have an official word from Lawrence on how much money he has lost in cryptos. However, it's another grim reminder of how many celebrities jumped onto the crypto bandwagon without understanding the risk. Several people invested in cryptos just because they were backed by a popular celebrity.
Meme cryptocurrency Dogecoin is a case in point here. It was pumped on multiple occasions by Elon Musk, the self-proclaimed “dogefather.” The crypto has since crashed and those “HODLing” have made massive losses. Incidentally, Musk is now facing a lawsuit over his role in pumping Dogecoin.
Governments globally are looking to better govern digital assets to protect retail investors' interests. U.S. President Joe Biden also issued a White Paper in that regard. Investors should consider cryptos only after they understand the asset because herd mentality and following a celebrity might not be the best approach.