It seems Justin Bieber’s journey into the risky realm of non-fungible tokens (NFT) appears to be having difficulty. The singer apparently lost over 95% of his investment in the Bored Ape Yacht Club (BAYC) NFT—a $1.2 million harm.
Celebrity endorsements and investments have increased with the introduction of NFTs. These blockchain-based, one-of-a-kind digital assets have given celebrities new ways to interact with their fan bases, monetize their brands, and enter the lucrative world of cryptocurrency.
However, it seems not always their investments come out profitable, at least that’s what happened to pop singer Justin Bieber who lost over $1 million on NFTs.
Early in 2022, The Bored Ape Yacht Club (BAYC) was popular, and stars like Paris Hilton and Jimmy Fallon were clamoring to join the NFT craze. Justin spent 500 Ethereum ($1.3 million) for his, but the value has declined.
Page Six said that Bieber spent 300% more than the non-fungible token’s market value at the time, which would have made it worth around $433,000 at the end of 2022. In the subsequent year and a half, the value continued to decline and is now only valued at 27.1821 Ethereum on OpenSea , or approximately 4% of what Bieber paid.
The effective loss might, however, may be zero. Despite Justin Bieber having lost close to $1.2 million on the NFT capital, there have been rumors that he might have gotten the NFT for nothing in return for supporting BAYC on social media.
According to several Twitter users, a wallet connected to MoonPay and Yuga Labs sent 400 ETH (about equivalent to $1.2 million at the time) to Justin Bieber’s wallet.
Despite the fact that the NFT company that manufactured the well-known collection made headlines in the past for sending NFTs to celebrities, the parties didn’t release a statement confirming this.
By December of last year, a complaint had been filed against both companies, accusing them of leveraging celebrity endorsements in deceptive advertisements.
Justin Bieber was one of the first well-known stars to support what was hailed as a revolutionary change in how digital assets were owned.
According to some, having a piece of the Bored Ape series was like owning a Warhol-esque front-runner in digital art. The value, however, has significantly decreased and is still declining.
Similar to the cryptocurrency industry, NFTs have seen their fate decline. Even while Justin Bieber’s Bored Ape token wasn’t very rare (its rarity rank was 9,810), the decline in value appears to be related to a sector that had a boom followed by a bust in a matter of months.
Bieber was among the first celeb NFT owners, along with Cara Delevingne, Snoop Dogg, Eminem, Emily Ratajkowski, Kate Moss, Shawn Mendes, Tony Hawk, Lindsay Lohan, and Paris Hilton. Other A-list celebrities who participated in the NFT craze (though less heavily) include Lindsay Lohan and Paris Hilton.
Although “Bored Ape #3001” maybe was Justin Bieber’s worst financial decision to date, the artist invested $2 million in total over six NFTs.
Here is the list :
Michael Jordan, a former NBA legend, is the most recent casualty; by mid-November, the value of his “6 Rings” NFT collection had decreased by more than half. In March 2022, he published his own NFT collection, offering 5,000 non-fungible tokens for sale. The collection debuted on the Solana-based HEIR and MagicEden platforms.
Paul purchased an NFT from 0N1 Force, a project that started as the market reached new highs, for $623,000 in August 2021. After a year, the buzz has subsided, and 0N1 Force NFTs are now available for approximately $460 in ETH.
The famously famous Coachella Music Festival might be in even more trouble. Its NFTs were sold for $1.5 million, but as a result of the exchange’s bankruptcy filing, they are currently “disabled” on FTX. As of November 17, users were unable to remove Coachella NFTs and other assets from the platform. The freeze hurts Coachella’s tokens even though their staff has said they are working on alternatives.
Absent the circumstances surrounding Bieber’s BAYC buy, this NFT’s value has significantly decreased and is currently valued at roughly $50,000.
The volume of ETH in the Bored Ape Yacht Club collection over the last week was 27,775 ETH, according to NFT Floor Price. With a 300,000 ETH market valuation, it came in second.
The current Bored Ape Yacht Club price floor is 30.3 ETH. 3,500 ETH worth of the collection has been sold in 118 transactions during the past day.
However, it is still among some of the most valuable NFT collections.
The decrease in Justin Bieber’s NFT investment is not a one-off occurrence. While the cryptocurrency market is slowly recovering, the floor prices of several of the best NFT collections have decreased.
NFT collections have been notably impacted in the Azuki ecosystem. Azuki, Alemental, and Azuki, Elemental Beanz collections decreased by 20% during the weekend.
An NFT lending and borrowing site called SnowGenesis also announced a record-breaking liquidation of more than 1,200 NFTs over the course of the previous three days. Colin Wu, a writer covering cryptocurrency, claims that it was the largest-ever liquidation of NFTs. Notably, this comprised about 3% of all Beanz NFTs.
Blue-chip NFTs may soon stabilize as the NFT market undergoes a downturn. CryptoPunks and Mutant Ape Yacht Club have seen rises on the daily charts.