Huge NFT Investment Turned Into Massive Losses
Former music chart-topper Justin Bieber was one of many celebrities who decided to invest in non-fungible tokens (NFTs) during the 2021 crypto boom. The singer purchased a digital ape from the Bored Ape Yacht Club collection for a whopping $1.3 million.
However, the value of NFTs from this popular collection has since plummeted by more than 90%. According to Decrypt, the minimum price for a Bored Ape is now just $12,000 - meaning Bieber's investment has lost over $1.2 million in value.
Such a sharp decline in NFT prices should not come as a surprise. Despite the hype around this market in 2021, most projects turned out to be little more than speculative bubbles that burst with the onset of the crypto market crisis. Many investors, including celebrities, have suffered significant losses.
Bieber's example clearly demonstrates that investing in NFTs carries high risks. Before investing, it is necessary to carefully study the project, its prospects, and assess the possible risks.