Earlier this month, the Washington Nationals’ official Twitter account tweeted a series of highlights along with a “Crypto 101” of facts around cryptocurrency. The post had the caption “You have questions. We’ve got answers.” and was sponsored by Terra, a blockchain platform. Usually, I don’t spend a lot of time looking at tweets from rival teams (Go Braves), but this one caught my eye.
The reason the tweet was garnering so much attention wasn’t because of Juan Soto’s homerun swing, but rather that one of the sponsor’s coin’s prices was plummeting, despite being a stablecoin (not intended to have large fluctuations in value and aimed at keeping its price around $1). Full disclosure, I don’t pretend to understand everything that goes on in the unregulated crypto space, but I do consider myself a healthy skeptic and long-term investor. For these reasons, I am always hesitant to put too much faith in provocative ads from investment companies, including extremely vague commercials featuring Matt Damon walking through a magical room in space. Instead, I choose to focus on what drives returns in markets, keeping costs low, controlling my emotions, and how I can give myself the best chance of success in reaching my goals.
One of the facts from the post states that "cryptocurrency is: for purchases, and can be saved and invested." If you invested $1,000 in the sponsor's coin at 1PM on May 10th, 4 minutes before the Nationals tweet, you would have $25.60 left as of end-of-day May 30th. Ouch! The nationals are in last place in the NL East at 21-35, which is bad, but still better than their tweet on Crypto.
Sources: Twitter, CoinMarketCap
Nothing in this material should not be construed as investment advice or a recommendation related to any cryptocurrency or digital asset. The opinions voiced in this material are informational only.