As you are probably aware (hopefully from reading news headlines and not because of your own investment decisions), digital currency markets are in the toilet. Several exchanges and crypto hedge funds are bankrupt or exploring bankruptcy options. The price of Bitcoin has dropped 70% since October. Companies like Coinbase are preparing for massive layoffs.
A lot of people have lost A LOT of money in the last few months. And apparently, at least according to his own brother, one of those people who have lost A LOT of money is YouTuber-turned boxer, Jake Paul.
JC Olivera/Getty Images
On a recent podcast, Logan Paul claimed that Jake is now "poor" after investing his money in various cryptocurrencies.
The revelation came amid a discussion of Jake's finances in general, like the $40 million he's reported to have made as a boxer so far, and the almost $5 million he's saying he's still owed from his 2021 match with Floyd Mayweather. But according to Logan, that's all a moot point:
"It doesn't matter, he put it all in crypto! He's poor!"
The crypto crash has brought Bitcoin and other cryptocurrencies down to historic lows of late, so if Jake did indeed invest all of his money, or a big chunk of money, he's likely feeling a lot of pain right now.
To be fair, we don't know to what extent Logan was exaggerating his brother's situation for entertainment value. On the other hand, Jake has been a vocal crypto supporter in the past, so it's a safe bet that a not insignificant portion of his assets are tied up in those types of investments.
If so, he wouldn't be the only YouTube star to lose a bundle on the crypto roller coaster. Just last month, YouTuber Olajide Olayinka Williams Olatunji, also known as KSI, admitted to having flushed $3 million down the toilet in about 24 hours after a horribly timed bet on the crypto Luna.
Reacting to his own revelation, KSI tweeted:
"I just put 2.8 million in that Luna buy and it's worth less than 50k. But that's ok because I'm not dead. I've got my family, my friends and my vigorous work ethic haha."
If Jake Paul did indeed lose a large portion of his wealth due to the crypto downturn, something tells me we're going to see him fighting in the ring a bunch this year and next year.