Crypto's ties to sports raise ethical questions
Sports fans who view their favorite players as role models might think twice before taking their financial advice, too.
The bankruptcy of FTX and the arrest of its founder and former CEO are raising new questions about the role celebrity athletes such as Tom Brady, Steph Curry, Naomi Osaka and others played in lending legitimacy to the largely unregulated landscape of crypto, while also reframing the conversation about just how costly blind loyalty to favorite players or teams can be for the average fan.
Cryptocurrencies are digital money that use blockchain as the database for recording transactions. It isn’t backed by any government or institution and it remains a confusing concept — one that at first was largely the niche of tech-savvy coding specialists, people who distrusted governments and centralized banking systems and speculators with money to risk.
But now that risk is increasingly being taken on 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 touting products that could lead their fans to financial harm? Or should fans bear the responsibility for their own risky behavior regardless of who is encouraging it?
“In retrospect, it was an unwise business association that put Curry and Brady together with bad company,” Mark Pritchard, a professor at Central Washington who has studied the intersection of ethics and sports, said in an email to The Associated Press. “Not sure how much due diligence was paid to the decision, but it does call to mind a Warren Buffet quote: 'Be fearful when others are greedy and greedy when others are fearful.'”
The marriage between crypto and sports formed a few years ago and has only strengthened since, despite all the troubles plaguing the...