In December 2017, ESPN Sports Business Reporter Darren Rovell tweeted, "It's insane the amount of athletes talking crypto currency in the last two weeks." The insanity has not stopped. Whether it be in locker rooms or publicly, athletes continue to discuss the opportunities and pitfalls involved with investing in cryptocurrencies with some even putting their money where their mouths are.
One such athlete is 4-time Pro Bowler and Super Bowl XLVIII champion Richard Sherman. When he's not shutting down wide receivers, Sherman is often thinking about how he can make money off the field. He is also now the spokesperson for COBINHOOD, a cryptocurrency service that provides a wallet to store Bitcoin, Ethereum and over 40 alternative coins.
I recently spoke with Sherman about his investment strategy, why he is particularly interested in cryptocurrencies and what opportunities he sees in the space.
How long ago did you first start investing and what did you begin investing in?
Sherman: Municipal bonds were probably my first investment. I'm a low risk taker when it comes to my money. I didn't have the biggest contract my rookie year [a 4-year deal worth $2.22 million]. I also had a few mutual funds. Now, I have a couple Wingstops that I franchise and number of real estate investments. I also have equity in a number of companies and am invested in Berkshire Hathaway's fund.
What brought your attention to cryptocurrencies and is there a particular cryptocurrency that interests you most?
Sherman: Bitcoin was the first thing I invested in, and it was 2 years ago. The first time I heard about it was 6 years ago, when we started accepting digital currency on my website at the advice of one of the managers of the website. The fans wanted to use it and pay with Bitcoin. In hindsight, we probably should've held on to it.
I personally like Ethereum. Obviously Bitcoin's the flashiest and most expensive, but I see people branching more off the Ethereum blockchain than any others.
How much of your overall portfolio would you say is invested in cryptocurrencies and do you see yourself either pulling back or adding more to your position?
Sherman: Probably like 5%, if that, is invested in crypto. I probably have less than that in stocks, but more in bonds.
What do you think will be the next big news event in the world of cryptocurrency?
Sherman: I think bigger companies that have IPO's and have been in that world forever will start to move to crypto coins. I think more people will start to use cryptocurrency to pay for common items like groceries and clothes.
Some of the things you run into are trading fees just like when you trade stocks. That's what makes COBINHOOD a great platform, because it eliminates those fees and allows you to make more profits than other platforms would.