Jake isn’t the only social media star to lose money in crypto. Logan Paul admitted on his podcast in May that he lost over $500,000 investing in the ill-fated Luna token, while fellow YouTube star KSI lost around $3 million in the same investment.
Jake has also come under scrutiny in 2022 for shilling a number of non-fungible token draws (NFTs) and crypto mats, where projects make big promises to potential investors, take their money, and then fail. to deliver. Perhaps this is a sign that, with his crypto investments so far underwater, Jake is feeling the pinch and looking for other sources of income.
Pseudo-anonymous crypto sleuth Coffeezilla could have connected Paul to crypto promotions and projects totaling $2.2 million.
Jake Paul’s Crypto Investment Outlook
While Paul has earned substantial sums promoting often doomed crypto projects, chances are he invested some of his fortune in these schemes, unaware of the scam at handy. In that sense, his losses could be ugly.
But Jake is known to be a lifelong fan of what has so far proven to be the safest bet in crypto, Bitcoin. In the past, he has claimed that he invested all of his earnings from his first Vine brand deal in the world’s largest cryptocurrency by market capitalization when he was sixteen years old and that he s was trading around $100 per token.
Although, on Sunday, BTC/USD is trading almost 60% below its November 2021 highs at $69,000, Paul would still be up around 280x on this investment.
Bitcoin’s short-term struggles appear to be over, as global economic conditions deteriorate and persistently high inflation forces major central banks like the US Federal Reserve to continue with monetary tightening regardless.
But the long-term outlook for bitcoin looks very promising, with global adoption of cryptocurrency payments/investments still appearing to be in its early stages, and stories that bitcoin is a long-term store of value akin to cryptocurrency. he gold and a nascent form of ‘freedom money’ are gaining popularity.
If Jake Paul invests a substantial portion of his $40 million in 2021 earnings in Bitcoin, he will likely be sitting in a net profit by the end of this decade, with many predicting the cryptocurrency to move into the hundreds of thousands per token, otherwise reaches the million.
Paul has also in the past praised Dogecoin as “Bitcoin’s younger brother”. The outlook for the crypto community’s favorite meme-coin is much less certain than with the tried and true crypto-safe haven bitcoin. Indeed, DOGE/USD is currently around 90% below its 2021 highs.
But as Elon Musk continues to tout Dogecoin as a workable currency, you never know. If Paul has invested a significant portion of his 2021 earnings in the dog-inspired piece and Musk is making it an official tender for any future SpaceX colony on Mars, you never know!