Frothy NFT market doesn’t pay out as expected
The speculative investments of non-fungible tokens (NFTs) and cryptocurrencies have been causing celebrities some major financial losses over the past year. One example, Logan Paul, a YouTuber, reportedly purchased an NFT for over half a million dollars that is currently valued at around $10. Enthusiasts in NFTs and blockchains believe that they will bring some revolution to the financial world. Die-hard NFT supporters, however, would concede that the frothy NFT market of 2021 required a correction, particularly as the collections of these images were sold for millions of pounds. Four celebrities lost significant amounts of money due to the decrease in the NFT market. Interest in NFTs, however, continues to grow.
Major Celebrities invested in NFTs lost significant funds
KSI, Neymar Jr., Steve Aoki, and Logan Paul are among the celebrities who have lost significant amounts due to the decline in the NFT market. In May, the rapper, KSI, invested $2.8 million in the LUNA crypto token just as it began to crash. Football star Neymar also joined the NFT craze earlier this year with two NFTs from the Bored Apes Yacht Club with a value of £1m, which have lost around £700,000 since. Steve Aoki, an electronic music DJ and producer, and owner of eight Bored Ape NFTs, saw the value of the assets collapse significantly. The four will regret not getting a return with Iron Mike in the ring.
NFT is a tricky market even for major investors
Many people who have invested in NFTs have learned the hard way over the past year that their value is subjective and speculative. NFT investments are considered long-term investments that would have significant gains over time. Nonetheless, there have been several instances where huge sums of money have been lost. In the case of Logan Paul, his NFT collection is now worth just under $1m, a 60% decrease from its peak value. The growing interest in NFTs may mean that the market will recover, but only time will tell if the investments of these celebrities, along with others, were wisely invested. The unsteady market of NFTs may have made some winners, but it also created notable losers.
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