Justin Bieber’s Bored Ape NFT which was worth $1.3 Million at the time of purchase, has dropped to the point where it is now worth a mere $70,000, a significant drop in value. The reason for this drastic drop is primarily attributed to the crash of the Crypto firm FTX which filed for Chapter 11 bankruptcy last week. Still, it should be noted that cryptocurrency prices and supply/demand factors are affecting the current NFT market.
Analysis of the NFTs
NFTs, or non-fungible tokens, continue to be a massive craze sweeping the digital world. Celebrities and everyday people alike are invested in these unique digital assets, but not everyone is seeing success.
Justin Bieber is one of the biggest celebrities that jumped on the NFT bandwagon, but unfortunately for him, his investment didn’t pay off. The singer reportedly spent $1.3 million on Bored Ape Yacht Club #3001, one of the less popular Apes in the famed collection. Since he bought it in January, the NFT is now only worth $70,000, which means it lost 95% of its value – ouch!
While some people have been able to profit from buying and selling NFTs, it’s important to remember that there is always a risk involved. So, if you’re considering investing in an NFT, do your research first!
It was rumored that Bieber overpaid on the initial investment and that it was worth as little as $200,000 at the time of purchase.
Assumptions and Why He Got Involved in Bored Apes
So, what exactly are NFTs? And why did Justin Bieber get involved in this project?
NFTs are digital assets that are stored on a blockchain. Unlike other digital assets, NFTs cannot be reproduced or exchanged for other assets. This makes them unique and allows them to be bought and sold like traditional collectibles.
Bieber got involved in Bored Apes because he was intrigued by the idea of NFTs and the exclusivity and status it brought with celebrities like Snoop Dogg, Madonna and Timbaland all owning Apes.
It could be said that his motivation wasn’t purely financial as an investment and that he wouldn’t be bothered by the decrease in value as the BAYC remains a pillar of the NFT community.
Buying NFT’s
If you are looking to buy NFTs as investments, you must ask yourself a few basic questions.
Who are the project creators?
What is their mission and vision for the community?
Am I buying at a reasonable price?
What future benefits are there from owning this NFT?
NFT Today Magazine recently published an article about how the NFT trading landscape is changing with companies creating market structures – this will go some way to ensure that buyers know what the current and probable future value of NFTs are.
Rocco Strydom is the Founder of SGM Holdings – finance, energy and media and is the host of the
SGM podcast based in South Africa
