Millions wiped off Trevor Lawrence’s crypto portfolio: What went wrong?

Highlights

• NFL star Trevor Lawrence reportedly invested his entire signing bonus from Jacksonville Jaguars into crypto last year.
• As per reports, Lawrence’s crypto portfolio is down more than 60%, with his aggregate losses running into millions of dollars
• Are there any lessons from Trevor Lawrence crypto episode for crypto enthusiasts, let’s find out

Are cryptocurrencies the biggest wealth creators in the contemporary world? There might still be a lot of crypto enthusiasts that might say yes. These backers of digital currency are probably the ones who bought their assets at low prices and liquidated them to book profit at an opportune time.

But for many, cryptos might also have been a huge wealth destroyers. The latest in the list of crypto backers that have lost substantial amounts of money in the wake of the ongoing meltdown is NFL star Trevor Lawrence. Let’s explore.

What is the buzz about Trevor Lawrence’s crypto investments?

The cryptocurrency investment by Trevor Lawrence, a top NFL draft pick of the year, had made headlines in early-May 2021. According to reports, when quarterback Lawrence signed a contract with Jacksonville Jaguars last year, his entire signing bonus was parked in cryptoassets. He was said to have joined forces with an exchange Blockfolio that converted the bonus into assets including Bitcoin, Ether, and Solana.

Reportedly, bonus money worth US$24 million was converted into cryptos. Before him, a few other NFL players like Sean Culkin were also reported to have chosen to get paid in Bitcoin or other cryptos.

Also read: Professional athletes and clubs going gaga over cryptocurrencies

Trevor Lawrence’s crypto losses

It is easily understandable that any investment in Bitcoin in May last year must have yielded massive losses, looking at Bitcoin’s current price. As per reports, Lawrence’s crypto portfolio is down more than 60%.

Millions of dollars have been wiped out in a matter of one year, which has become the talk of the town. Since Lawrence’s investment using the Blockfolio platform made big news, the losses reported by analysts are also hitting headlines. There is, however, no official statement yet from Lawrence. Besides, the sum of money that was converted into cryptos last year is also an estimate.

Lesson for crypto fans?

Crypto prices can swing in any direction. Last year, all three cryptos that were reported to have made Lawrence’s portfolio grew in value. Solana was one of the best performing among thousands of assets in the cryptoverse.

But this year has been fraught with extreme negative forces, which have resulted in heavy losses. Bitcoin, Ether, and Solana have all lost at least half of their value since the beginning of 2022. The crypto lesson here is that enthusiasts that liquidate their assets at the opportune time can emerge unscathed. How the ‘hold on for dear life’ (HODL) sentiment will work in the longer horizon is a wait-and-watch game.

Data provided by CoinMarketCap.com

Also read: NFT corner: Protests held in Manhattan; Udder Chaos NFTs launched

Bottom line

NFL Quarterback Trevor Lawrence’s reported crypto losses might add to the fears that are already prevailing in the crypto world. That said, Bitcoin has currently stabilised at US$20,000, after having dropped to under US$18,000 a few days back.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.