Why Tom Brady is ready to lose big money investing in FTX, cryptocurrency


As rumors of cryptocurrency exchange FTX’s buyout filtered through the news cycle, the spotlight was firmly on the brand’s most prominent investors.

One of those investors was Buccaneers quarterback Tom Brady, who along with ex-wife Gisele Bundchen reportedly put some of his fortune into FTX after announcing a partnership with the company and its CEO, Sam Bankman-Fried, in 2021.

MORE: Brady and Bundchen’s divorce, explained

Brady and Bundchen appeared in commercials promoting the company, which is buzzing even more rival Binance announced on Wednesday it would not go ahead with a purchase of FTX after doing “due diligence”. FTX’s valuation reportedly increased from $89 million to $1 billion in 2021.

As a consequence of this bubble bursting, the 30-year-old Bankman-Fried – who has more than $10 billion tied up in FTX and crypto analytics firm Alameda – saw his name deleted from the Bloomberg Billionaires Index, meaning the vast majority of his wealth is likely to have evaporated.

MORE: Tom Brady opens up about how his split with Gisele Bundchen has affected the game

Brady and Bundchen will also see a decline if their investments in the company were significant.

Here’s what you need to know about Brady, Bundchen and FTX:

Why did Tom Brady and Gisele Bundchen invest in crypto?

Brady and Bundchen’s cryptocurrency investment was a sign of the times. They rode the wave of claims that the crypto exchange was foolproof and stable.

The couple got in on the ground floor, first announcing a partnership with Bankman-Fried’s crypto lovechild in 2020, then agreeing to an endorsement deal with FTX in 2021. The deal gave Brady and Bundchen equity in FTX, as well as a signing bonus. into cryptocurrency.

The contract indicated that FTX would donate millions annually to charity on behalf of Brady and Bundchen, further sweetening the pot.

“Sam and the revolutionary FTX team continue to open my eyes to the endless possibilities” of crypto, Brady said in a statement at the time. Bundchen offered similar messages: “Cryptocurrency will become more and more familiar to all of us as time goes on.”

FTX isn’t the only crypto holding Brady is locked into. He also helped found Autograph, an NFT startup that makes tokens for the NFL.

MORE: Inside Tom and Gisele’s relationship, from marriage to kids to divorce

How much did Tom Brady and Gisele Bundchen invest in FTX?

It is unclear how much money Brady and Bundchen placed in FTX. But given their equity in the company as well as their wealth – per Celebrity Net Worth Brady and Bundchen are worth a combined $650 million – looks like the amount was substantial.

The two now appear to be on track to lose the vast majority of the investment. If Bankman-Fried’s loss is any indication, Brady and Bundchen could see a serious reduction in the value of their assets in the coming weeks and months — Bankman-Fried lost her billionaire status overnight.

How does Tom Brady and Gisele Bundchen’s divorce affect their crypto investment?

With the couple recently finalizing their breakup, Brady and Bundchen are each feeling the brunt of the FTX bust. Once again, it is unclear how much the couple invested.

Brady is worth an estimated $250 million. Bundchen’s net worth has been estimated at $400 million.


Source link

Leave a Comment