Dallas Mavericks fans are getting burned by the bankruptcy of ill-fated crypto brokerage Voyager Digital — and so they’re lashing out on the NBA team’s owner Mark Cuban for luring them to speculate in the corporate.
Voyager declared Chapter 11 late Tuesday, citing chaos within the crypto markets. The foremost crypto player had paid high rates of interest on crypto deposits and got crunched because it sought to lend out tokens at even higher rates. Most account holders will likely be hard-pressed to get back their money, in keeping with reports.
“Shame on Mark for partnering with them,” one Mavericks fan posted on Reddit, referring to the team’s billionaire owner and longtime “Shark Tank” investor.
“Thanks Mr. Cuban. Getting your fans to trust unstable exchanges. Good,” one other user fumed sarcastically.
“One other Cuban special,” a 3rd wrote.
Mark Cuban’s Mavericks on Oct. 28 of last 12 months announced a five-year partnership with Voyager and its CEO Steve Ehrlich, above.Dallas Mavericks
Voyager declared Chapter 11 late Tuesday, citing chaos within the crypto markets.Dallas Mavericks
Cuban didn’t immediately reply to questions from The Post on Wednesday, including whether the Mavs are actually a Voyager creditor with claims in bankruptcy court.
The Mavericks on Oct. 28 of last 12 months announced a five-year partnership with Voyager giving fans a $100 reward to trade crypto on Voyager for a limited time in the event that they deposited $100 and traded just $10. On the time, Cuban said the Voyager partnership would make cryptocurrency more accessible.
“We’re going to provide you with recent ways to introduce Mavs fans to cryptocurrency and help them understand it,” Cuban said on the time. “You recognize, there’s plenty of hype, there’s plenty of discussion, but most individuals don’t understand the basics behind it.”
Cuban had even staged a press conference that day with Voyager CEO Steve Ehrlich, where newly signed Recent York Knick Jalen Brunson, then a Maverick, asked, “If that is my first time moving into crypto, what are some key things I want to know?”
“Shame on Mark for partnering with them,” one Mavericks fan posted on Reddit.Dallas Mavericks
“Yeah, you’re spending your money, so at all times watch out,” Cuban responded on the time. “But the opposite thing, look, there’s investments, things like Shiba Inu and Dogecoin, those aren’t investments. But Voyager … that is a great technique to learn and it’s something you possibly can do in your smart phone. You may start moving into this and saving your money and that’s just a singular opportunity.”
Voyager’s stock rose 9.5 percent on Oct. 28 to around $17 per share. On Wednesday, it was trading at 26 cents.
Large crypto exchanges binged on sponsorship deals in 2021 in an effort to woo sports fans, lots of whom were flush with money in a decent labor market, fresh on the heels of generous government stimulus from the pandemic. Now, as The Post reported exclusively, crypto firms are ditching sports deals.
Most Voyager account holders will likely be hard-pressed to get back their money.Dallas Mavericks
“These struggles with crypto sponsors will lead all clubs to re-examine their sponsors risk-profiles, particularly for brand new industry categories,” Rick Allen, CEO of sports streaming consultant firm ViewLift told The Post.
“I’d expect teams and leagues to recheck their deals, especially for sponsors in crypto currencies, gambling, NFTs and other recent categories where the shortage of actual loss data made risk underwriting more speculative,” Allen added.
In a Fortune article just last month, Cuban said there will likely be winners and losers in crypto.
“In stocks and crypto, you will notice corporations that were sustained by low cost, easy money — but didn’t have valid business prospects — will disappear,” Cuban said. “Like [Warren] Buffett says, ‘When the tide goes out, you get to see who’s swimming naked.’”