FTX Cryptocurrency company Tom Brady endorses collapsed

FTX Cryptocurrency Exchange is a business that allows people to buy and sell digital currencies and other digital assets. Less than two weeks ago, it was a $32 billion crypto behemoth with celebrity endorsers such as Tom Brady (NFL) and Stephen Curry (NBA). Today the company is bankrupt, its founder Sam Bankman-Fried is sheltering in the Bahamas and its customers can no longer withdraw money (either actual money or digital dollars) from their accounts. Several sources report that up to a billion dollars of customer funds are missing.

It’s not necessary to understand what a cryptocurrency exchange is to grasp this horrible situation. There are enough obvious red flags that anyone can learn from them.

Tom Brady and his (now ex) wife Gisele Bündchen were investors in the company and featured in a number of FTX ads. “FTX is the safest and easiest way to buy and sell crypto,” Brady declares in one ad.

Lesson: celebrity endorsements are worthless on any topic other than how to become a celebrity.

More on cryptocurrency:Crypto crash, inflation and more happened as people voted. Here’s what’s important and why

Sam Bankman-Fried speaks at the Crypto Bahamas conference in Nassau on April 27. The rapid collapse of the cryptocurrency exchange built by Bankman-Fried suggests that no company in the freewheeling, loosely regulated crypto industry is safe.

I’ve written this before, but it bears repeating: if you don’t understand something well enough to be able to understandably explain it to a 14-year-old, don’t invest in it. I have yet to meet anyone who can clearly and understandably explain cryptocurrency.

More on investing from David Moon:Hidden incentives are dangerous for investors | David Moon

More on investing from David Moon:Keys to investing: Get started, avoid high fees, don’t overthink | David Moon

Source link

Tags: No tags

Add a Comment

Your email address will not be published. Required fields are marked *