Pop singer Justin Bieber, who has not hesitated from exploring the digital assets sector, has reportedly been exposed to the financial risks that crypto sceptics keep warning others about. An NFT purchased by Bieber last year for an outlandish price of $1.3 Million (roughly Rs.10 crore) has now crashed to a price less than half of its original value. This drastic change in the values of digital collectibles can be blamed on the ongoing market volatility affecting the overall sector.
Bieber’s NFT belongs to the famous Bored Ape Yacht Club (BAYC) collection. Created by digital art platform Yuga Labs, NFTs from BAYC show bored looking apes in various avatars.
The BAYC NFT #3001, that cost the “Peaches” singer over a million dollars, now reportedly stands at the price point of $59,090 (roughly Rs. 48 lakh).
The development has been talked about heavily on Twitter as a warning to potential NFT investors.
Justin Bieber purchased this Bored Ape NFT in January 2022 for $1.31 million.
Today, it’s worth $59,090. pic.twitter.com/SEtUy4TasA
— SAY CHEESE! :lips::cheese_wedge: (@SaycheeseDGTL) July 3, 2023
The price of BAYC NFTs began to wobble around April when the overall crypto market was also beginning to slow down amid post-COVID-19 inflation in the US.
Owing to back-to-back interest rate hikes in the US as well as regularity uncertainty shadowing the global Web3 sector, investors exited in plenty, negatively impacting the digital assets sector.
As per NFT and Web3 analysers like OpenSea and CoinGecko, the floor price of the BAYC NFT collection has sunk significantly in the last few months, a new one recorded after October 2021.
The floor price (lowest price of an NFT from a collection) of BAYC NFTs stands lower than ETH 30 (roughly Rs. 48 lakh).
Bieber’s BAYC NFT #3001, that shows a teary, brown-coloured ape standing in a “new punk blue” background in a simple, black-coloured t-shirt, was purchased by the singer at a higher than listed price.
The original price of this piece was around $270,908 (roughly Rs. 2 crore) at the time of sale, but the Canadian singer bought it for a price 300 percent higher, according to Bitcoin.com, inviting trollers to attack him at the time.
Now that its price has fallen, it remains unclear if Bieber would retain the NFT or re-sell it for profits.
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