The NFT business has been expanding in popularity among celebrities in recent times. However, NFTs are incredibly speculative investments, and their value is subjective. As a result, it is difficult to choose NFTs whose value will definitely increase.
Investors’ excitement around this industry fueled the NFT market’s growth and led celebrities to overpay for NFTs compared to their actual value. Celebrities on the A-list, like Snoop Dog, Madonna, and Justin Bieber, have been among the most outspoken supporters of NFT digital art. However, they suffered significant losses after investing in risky assets. Let’s look at all the details.
- Justin Bieber
The Canadian pop artist, Justin Bieber, suffered one of the most significant losses. He paid $1.3 million for a Bored Ape Yacht Club NFT in January 2022. The NFT is now worth $93,951.
After Bieber revealed his acquisition on Twitter, people made fun of him for spending so much on a rather standard NFT. The average cost of a Bored Ape at the time of Justin Bieber’s procurement was $270,908; therefore, Bieber paid approximately four times that amount. He hasn’t given up the NFT yet.
In January 2022, Neymar came into the NFT realm. The star spent roughly $1 million to purchase two NFTs from the BYAC collection. He proudly set an ape as his Twitter profile photo at the time. Neymar’s two apes are now worth even less than $350,000.
- Logan Paul
The notorious YouTuber Logan Paul jumped on the NFT bandwagon last year. It now seems that his enthusiasm cost him a substantial sum of money. Logan said an NFT he paid $623,000 for is now only worth $10. However, NFTs make up only a small portion of the enormous collection he gathered over the past year while paying over $2.5 million. This collection’s current estimated value is just under $1 million, which is still a respectable sum, but it’s down 60% from its peak.
In March, Madonna spent $466,461 for a BAYC NFT. The price of the picture, which featured a monkey with a leather helmet and chain, has fallen to approximately $131,984.
In addition to producing her line of NFTs with digital artist Beeple, Madonna also owns several NFTs. For example, her naked computer-generated images of herself having given birth to a tree are displayed in her NFTs with the moniker Mother of Creation.
- Snoop Dogg
Snoop Dogg spent $7.09 million on an NFT dubbed Right-click and Save as Guy, which holds the record for the most costly celeb NFT purchase. However, the rapper also owns another NFT called Crypto Punk, which was purchased for $1.1 million and is currently valued at $688,251.
- Steve Aoki
Steve Aoki, a DJ known for his boisterous EDM bangers, has also established a reputation in the cryptocurrency world as a reputable NFT collector and developer. Regrettably, these investments have not yielded the same level of achievement as his music.
Aoki has observed a sharp fall in the value of the assets he owns, including eight Bored Ape NFTs and almost a hundred more NFTs altogether. Although diversification allowed him to limit his losses, one of the Doodles NFTs he purchased in January for about $346,000 is now only worth $42,000.
All the instances mentioned above clearly depict the NFT world may sometimes be unstable and volatile, and a great deal of caution must be exercised while indulging in this purchase.