Crypto Bubbles

Fanatic sells 60% stake in Candy Digital amid 'imploding NFT market' https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvMGFhNjQ4ZmUtMmJhZi00N2RkLTk4NGMtNDllODE2MjM3OWE4LmpwZw==.jpg

The sports merchandise giant has got cold feet in the shrinking NFT market.

Sports merchandise firm Fanatics is divesting its stake in nonfungible token (NFT) company Candy Digital as confidence in the asset class wanes.

On Jan. 4, it was reported that Michael Rubin’s sports company Fanatics was offloading its majority 60% stake in the NFT startup.

Fanatics was started in 2011 and has become a known name in sports merchandising and e-commerce, valued at $31 billion.

MLB ICON Leadoff NFT Collectibles, launched by Candy Digital in Apr. 2022 Source: MLB

However, the crypto bear market has hit the NFT sector hard in 2022, and Rubin’s firm is seemingly now looking to turn away from “standalone” NFT businesses.

The investor group led by Novogratz’s Galaxy Digital will be purchasing the stake in Candy Digital, according to CNBC. In an email shared with the outlet, Rubin wrote:

“Over the past year, it has become clear that NFTs are unlikely to be sustainable or profitable as a standalone business.”

He stated that divesting ownership in Candy Digital “allowed us to ensure investors were able to recoup most of their investment via cash or additional shares in Fanatics.”

This was a favorable outcome for investors “especially in an imploding NFT market that has seen precipitous drops in both transaction volumes and prices for standalone NFTs,” he added. NFTs alone would not create much value, according to Rubin, who said:

“We believe digital products will have more value and utility when connected to physical collectibles to create the best experience for collectors.”

Fanatics acquired Topps trading cards for roughly $500 million in Jan. 2022. Furthermore, it acquired the rights to produce Major League Baseball trading cards and then NFTs following the launch of Candy Digital last year.

Related: What remains in the NFT market now that the dust has settled?

Fanatics raised $700 million in fresh capital in Dec. 2022. The funding will be used on potential merger and acquisition opportunities across its collectibles, sports betting, and gaming businesses, according to CNBC.

Candy Digital secured $100 million in funding in Oct. 2021 with a valuation of $1.5 billion at the time.

However, the NFT markets have shrunk considerably during the 2022 crypto winter. According to the Nonfungible.com market tracker, daily sales volumes have slumped from over 100,000 sales in January 2022 to around 15,000 today.

Cointelegraph reached out for comment from Fanatics and Candy Digital but had not received a reply at the time of publication.

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Fanatic sells 60% stake in Candy Digital amid 'imploding NFT market' Home Cryptocurrency Fanatic sells 60% stake in Candy Digital amid 'imploding NFT market' The sports merchandise giant has got cold feet in the shrinking NFT market. Sports merchandise firm Fanatics is divesting its stake in nonfungible token (NFT) company Candy Digital as confidence in the asset cla...

Celebs who got burned endorsing crypto and those that got away with it https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvMDZjZjcyNjYtNDUyOS00YTMyLWIzNmYtZjY3MTliNWMxOTVmLmpwZw==.jpg

Screen actors and sports stars copped most of the backlash for 2022’s crypto endorsements, while soccer legends appear to have gotten away with it.

Celebrities had a shaky year promoting crypto firms and projects throughout 2022.

Many found themselves named in lawsuits over their alleged promotion of since-failed projects, while others have been relentlessly mocked on social media for their involvement in the first place.

From movie stars to television actors, sports stars to musicians, many celebrities may be regretting their endorsement deals last year, though that’s not to say that there haven’t been exceptions.

Who got burned?

In February last year, American comedian Larry David, who co-created the television series Seinfeld, appeared in a Super Bowl commercial for now-defunct crypto exchange FTX that encouraged users not to “miss out on the next big thing.”

David has since been named in a class-action lawsuit that alleges that he, along with other celebrities, had promoted FTX to unsophisticated investors without performing any due diligence on the exchange.

He’s also being investigated by the Texas State Securities Board regard payments received by FTX for his endorsements, among other celebrities.

Meanwhile, the movie star known for his role in the “Bourne Identity” film series, Matt Damon, has continued to be mocked for his part in the $100 million promotional campaign for Crypto.com.

Damon was even satirized by the animated series South Park in the season 25 premiere in February 2022.

If you bought $1,000 of bitcoin the day Matt Damon's "Fortune favors the brave!" commercial came out, it would now be worth $375 pic.twitter.com/rp5IdjBD3m

— Jon Schwarz () June 13, 2022

In the sporting world, Japanese tennis player Naomi Osaka signed on to be an ambassador for FTX on March 21.

Like Seinfield’s co-creator, Osaka is also named in a lawsuit along with other high-profile celebrities who endorsed FTX including basketball legends Shaquille O’Neal and Stephen Curry, and NFL quarterback Tom Brady.

Professional boxer Floyd Mayweather was also named in a crypto promotion lawsuit in 2022 over his alleged promotion of EthereumMax, though the lawsuit was eventually dismissed by a federal judge in December.

Click “Collect” below the illustration at the top of the page or follow this link.

In the world of music, American rapper and hip hop artist Snoop Dogg has been named in a class action lawsuit for allegedly promoting Bored Ape Yacht Club nonfungible tokens (NFTs), along with other musicians including Madonna, Justin Bieber, Post Malone and DJ Khaled.

The lawsuit names over 40 people and companies as defendants, also including Tennis professional Serena Williams, actress Gwyneth Paltrow and comedians Jimmy Fallon and Kevin Hart.

Who got away with it

Interestingly, not all celebrity endorsements of crypto firms have been viewed in a negative light, nor have they attracted the scrutiny of class-action lawyers.

On Jun. 30, 2022, Binance announced it had snapped up the popular TikTok personality, Khaby Lame, as an ambassador.

The deal was seen as positive for the crypto sector, as Lame’s ambassador deal is part of Binance’s mission to increase Web3 awareness and adoption around the world.

Musician DJ Steve Aoki jumped into the NFT world with fantasy sports and sports betting operator DraftKings announcing the hitmaker as the brand ambassador for its NFT market.

Related: Tom Brady and other celebrities named in class-action lawsuit against FTX

American rapper Eminem performed alongside Snoop Dogg during the VMA’s to perform their NFT track "From The D 2 The LCD" featuring Otherside and Bored Ape NFTs.

In the sporting world, David Beckham became the global ambassador for blockchain company DigitalBits, launching his own range of NFTs in the process.

He appears to have avoided any accusations of wrongdoing despite the founders of DigitalBits being accused in an investor lawsuit for “diverting money needed for development” to expensive sports deals and luxury travel, according to a January 2022 report from The New York Times.

Meanwhile, legendary soccer player Lionel Messi has done deals with Singapore-based Bitget, fantasy sports platform Sorare and digital fan token company Socios.com.

Cristiano Ronaldo's foray into crypto sponsorship also appears to have gone down well in the community, working with Binance for the launch of an exclusive NFT collection allowing collectors the chance to receive perks including a personal message from Ronaldo and signed merchandise.

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Celebs who got burned endorsing crypto and those that got away with it Home Cryptocurrency Celebs who got burned endorsing crypto and those that got away with it Screen actors and sports stars copped most of the backlash for 2022’s crypto endorsements, while soccer legends appear to have gotten away with it. Celebrities had a shaky year promoting crypto firms and pro...