Unraveling the Fate of Justin Bieber’s Bored Ape NFT Investment

13 views 9:29 am 0 Comments July 5, 2023

Here’s a quick rundown:

  • Pop star Justin Bieber invested in two Bored Ape Yacht Club (BAYC) NFTs, shelling out more than $1.7 million in January 2022.
  • Presently, these NFTs are valued at under $120,000 combined, denoting a massive 93% depreciation.
  • BAYC, an NFT collection, witnessed its prime in April 2022 but has since experienced a steep decline in its value and liquidity.
  • Bieber and other celebrities invested in MoonPay, a crypto firm that might have used BAYC for promotional purposes.

Internationally acclaimed singer Justin Bieber encountered a significant financial hit after participating in the NFT mania, specifically involving the Bored Ape Yacht Club (BAYC) last year.

Non-fungible tokens (NFTs), exclusive digital collectibles supported by blockchain technology, soared in popularity during 2021. These assets became a novel method for enthusiasts and creators to engage and speculate in the crypto realm.

Bieber procured two BAYC NFTs in January 2022, expending 500 ETH (equivalent to $1.3 million) on Ape #3001 and 166 ETH (amounting to $470,000) on Ape #3850. At present, OpenSea, a leading NFT marketplace, values these NFTs at just 29.95 WETH ($58,610) and 30.06 WETH ($58,898.56), respectively. This marks a shocking 93% devaluation.

BAYC, a distinctive collection of 10,000 NFTs, features animated apes with varied traits and accessories. This assortment peaked in April 2022, commanding a total market cap exceeding 1.4 million ETH and a minimum price of 153 ETH, as per OpenSea and CoinGecko statistics. Since then, the value and liquidity of this collection have plummeted, currently standing at just 322,930 ETH and 31.4 ETH, respectively.

Bieber wasn’t the sole celebrity drawn to BAYC. Other eminent figures like Snoop Dawg, Drake, and Eminem also purchased and promoted these NFTs. Additionally, they contributed to an $87 million financing round for MoonPay, a crypto enterprise facilitating the purchase of NFTs using traditional currency.

Allegations have emerged on Twitter, accusing MoonPay of manipulating celebrities to inflate BAYC’s value as part of a promotional scheme. One tweet from Autism Capital suggested, “Justin Bieber was gifted that NFT by the company MoonPay as a promotional tactic so they could use his clout to pump the value of their scam.”

This month, BAYC investors have grappled with more losses, with the base price of the collection shrinking by 16% in just a few days. The NFT market also experienced a significant decrease in trading volume, which fell by 50% in June.

The fast-paced world of NFTs can be both exciting and unpredictable. This story highlights the volatility of such investments and the importance of understanding the risks involved. As digital assets like NFTs become more mainstream, stories like Bieber’s serve as a reminder of the potential for both great gains and substantial losses. So, approach with caution and arm yourself with information.