Sports fans who look to their favorite players as role models might think twice before taking their financial advice as well.
FTX’s bankruptcy and the arrest of its founder and former CEO are raising new questions about the role of celebrity athletes such as Tom Brady, Steph Curry, Naomi Osaka and others in lending legitimacy to a largely crypto landscape. , reframing the conversation about how costly blind loyalty to favorite players or teams can be for the average fan.
Cryptocurrencies are digital money that uses blockchain as a database to record transactions. It’s backed by no government or institution and remains a confusing concept – one that was originally a niche of tech-savvy coding specialists, distrustful of governments and centralized banking systems and speculators. money to risk.
But now that risk is increasingly being taken by investors who can’t afford to lose, and the disparity in wealth between celebrities and their fans creates an ethical dilemma: Should sports stars, or teams, or leagues, be joking products that may lead. a fan to financial harm? Or should fans be responsible for their own dangerous behavior regardless of who is encouraging it?
“In retrospect, it was an incomprehensible business association that Curry and Brady put together with bad company,” Mark Pritchard, a Central Washington professor who has studied the intersection of ethics and sports, said in an email to The Associated Press. “I’m not sure how much due diligence went into the decision, but it’s worth remembering Warren Buffet’s quote: ‘Be fearful when others are greedy and greedy when others are fearful.'”
The marriage between crypto and sports was created a few years ago and has only strengthened since then, despite all the troubles plaguing the industry. A study conducted by sponsorship group IEG, for example, found that FTX and other crypto companies spent $130 million on sponsorship in the NBA alone over the 2021-22 season; the previous season, the amount was less than $2 million.
FTX itself had many ties to sports before its collapse: the company paid an undisclosed amount to put patches on MLB umpires’ uniforms, $135 million for the naming rights to the venue where the Miami Heat play, and $10 million another for Curry basketball. team, the Golden State Warriors, for ad placement in their arena and throughout the Warriors organization.
While those markets, along with several others, collapsed when FTX declared bankruptcy, many more are still in the works. They include the naming rights to the home of the Lakers, once the Staples Center, but now the Crypto.com Arena, at a reported cost of $700 million over 20 years. There are crypto markets in cricket, soccer and Formula 1.
Separately, dozens of athletes have endorsed crypto, and in doing so, led some of their fans to follow suit — and others to file lawsuits, against the likes of Curry, Brady and other high-profile figures. others for using their celebrity status to promote themselves. The FTX business model failed.
Ben Salus, a Philly sports fan who lost crypto, said he was uncomfortably surprised by the sudden increase in crypto-related signs around his favorite team.
“It’s a very strange transition, especially because I don’t know if the world was ready for the prominence of crypto,” Salus said. “You’re supporting these big people with something that they or their teams know about something, but don’t know much about.”
The debate has become even more complex over the past five years, with the intersection of crypto, digitized artwork offered in the form of non-fungible tokens (NFTs), legalized sports betting and e-gaming, along with the virtual going into always size. reality Metaverse – all growing more popular among large factions of sports stars and fans alike.
“It’s a lot more connected than people think,” said Ryan Nicklin, who studies the role of crypto in sports as part of his public relations business. “And there’s a lot more crossover from the crypto world into the gaming world and into gaming, because when you spend on one of these Metaverse games, you’re essentially gambling because you don’t know what the value of that asset is you have Merchants will go up or down.”
Crypto’s move into the public mainstream wasn’t driven by sports, but as it became a better-known commodity, sports leagues and teams and their athletes – who have never been shy about trying to cash in – took over. from the latest trends – into the action.
“A lot of endorsements have to be about an emotional connection,” said Brandon Brown, who teaches sports and business at New York University’s Tisch Global Sports Institute. “So it would make sense for these (crypto) companies to work with a sports team or a sports celebrity because that partnership has an emotional connection.”
One key moment in 2020 came when several players, including Carolina Panthers Pro Bowl lineman Russell Okung, announced they would take part of their multi-million dollar salaries in crypto.
“So many buy Bitcoin to be cash rich,” Okung tweeted not long after the announcement. “I bought it to be cash free.” Shortly after, Bitcoin.com proudly stated that the increases in the price of Bitcoin had essentially doubled the $6.5 million portion of Okung’s salary that was paid in crypto.
More names later. Actors Matt Damon and Larry David were among the Hollywood types. The mayors of New York and Miami made a splash when they too said they would take their wages in crypto.
Aaron Rodgers, Shaquille O’Neal, Beckham Jr. and Trevor Lawrence were among a large group of high-profile athletes who also got in on the action. One popular commercial featured Tampa Bay Buccaneers quarterback Brady and his then-wife, Gisele Bundchen, calling cryptic-speaking friends and playfully asking them: “Are you in?”
The relationship between crypto and sports is also regenerating a debate about how athletes should use the platform that they would not have otherwise. Because of Colin Kaepernick’s kneeling, to say nothing of the racial tension laid out in the United States by the killing of George Floyd in 2020, he wore the old cliché “stop up and play”, and gave many athletes the opportunity to sport used to send a message.
Curry has been among those unafraid to tackle some of society’s toughest topics, speaking out after Floyd’s killing and contributing to the Players’ Tribune website where athletes blog about their unfiltered opinions. by traditional media.
Now, Curry is in the headlines again as one of FTX’s many paid endorsements. But aside from being named in a class action lawsuit and mocking some social media sites that are heavily involved in crypto discussions, there hasn’t been any major blowback against Curry for his investments and endorsements – and maybe there won’t be. ever there.
“When the currency blows, will people despise the currency, or will people despise Brady or Steph Curry?” Brown said. “I would say that people probably have such a strong connection with their sports figures that they will cling to that sports figure and blame the other party, which in this case is FTX, or the currency .”
What are ethical issues in technology?
Important Ethical Issues in Technology Read also : California Sports Betting: What’s Next?.
- Misuse of Personal Information. …
- Misrepresentations and Deep Fakes. …
- Lack of Supervision and Acceptance of Responsibility. …
- Use AI. …
- Autonomous Technology. …
- Respect for Employees and Customers. …
- Ethical Use of Data and Resources. …
- Responsible Adoption of Disruptive Technology.
What are the three main ethical issues in information technology? It creates and creates a number of problems related to ethics, and in general there are three main types of ethical issues: personal privacy, right of access, and harmful actions.
Will crypto get shut down?
Because Bitcoin is decentralized, no single government can shut down the network. However, governments have previously attempted to ban cryptocurrencies, or at least restrict their use in their respective jurisdictions. This may interest you : FanDuel prepares the launch of a cable network focused on sports betting. Governments could still try to ban Bitcoin jointly.
Will crypto survive the crash? Nolan Bauerle, director of research at CoinDesk, says that 90% of cryptocurrencies today will not survive a crash in the markets. Survivors will lead the game and maximize the returns of early investors.
Is this the end of cryptocurrency?
But the end of crypto? Far from it. This may interest you : When will sports betting be legal in Kansas? It’s still not clear. Things are bad and will probably get worse, but in the long term the industry will emerge stronger than ever.
Will crypto will crash again?
The crypto market has crashed before, and it’s likely to crash again so it’s important to be ready. Cryptocurrencies are notoriously volatile and risky, so investors can see market swings of more than 50% in a matter of months and as much as 15% price gains within 24 hours.
Does crypto have a future?
A new survey shows that a majority of Americans believe cryptocurrency is the future of finance. Both Democrats and Republicans believe cryptocurrency needs stronger regulation. With strong appeal to young people and minorities, cryptocurrency has the potential to create a more equitable economy.
What are the 4 main ethical principles?
Basic Principles of Ethics. Benefit, imperfection, autonomy and justice make up the 4 ethical principles. The first 2 can be traced back to the time of Hippocrates “to help and do no harm,” while the last 2 emerged later.
What are ethical principles? Definition. Ethical principles are part of a normative theory that justifies or defends moral rules and/or moral judgments; they are not dependent on one’s subjective views.
Why are the 4 ethical principles important?
These principles are independence, beneficence, non-maleficence, and justice. Each of these principles has a specific purpose, but all four come together to empower you as a healthcare professional and ensure that patients are receiving high quality and ethical healthcare.
What are the 4 main ethical principles in nursing?
Nurses are patient advocates and must find a balance in delivering patient care. There are four main principles of ethics: independence, beneficence, justice, and non-maleficence. All patients have the right to make their own decisions based on their own beliefs and values. [4].
What will happen if we stop mining?
Cars, both gas and electric would be gone. 27 States would lose 25% of their electricity output. No nails with a hammer home project. No more high rises, bridges, planes, trains or space exploration.
What would happen if we ran out of minerals? Minerals make up most of what we use to build, manufacture and stand on – including rocks and soil – so if we really ran out of minerals, we’d all be scrambling for a spot on shrunken areas of the planet.
Why mining should be stopped?
Mining activities increase the volume and rate of exposure of sulfur-containing rocks to air and water, creating sulfuric acid and dissolved iron. This acidic runoff dissolves heavy metals such as copper, lead and mercury that leach into groundwater aquifers and surface water sources, harming people and wildlife.
Why is mining important?
THE IMPORTANCE OF MINING Mining materials are needed to build roads and hospitals, to build cars and houses, to make computers and satellites, to generate electricity, and to produce many other goods and services that consumers enjoy. supply.
