World renowned pop icon Justin Bieber waded into the shifting currents of the non-fungible token (NFT) market, a domain both oozing with speculative promise but equally fraught with risk. After his foray into the NFT universe in 2021, marked by his high-profile admittance into the infamous Bored Ape Yacht Club (BAYC), Bieber’s investments have taken a steep plunge. Ape #3001, acquired in a hefty sum of 500 ETH ($1.3 million) in January 2022, is currently valued at a mere 29.95 WETH ($58,610), witnessing a sharp drawdown of 95%.
NFTs, unique digital assets proving a hit in the crypto landscape last year, gave Bieber a chance to bolster his connect with fans. However, none of his acquired NFTs were exceptionally rare, earning the singer some flak from crypto pundits for his extravagant “floor apes” purchase. Derived from NFT terminology, a “floor price” denotes the minimal bidding price within a specific collection.
At its zenith in April 2022, the BAYC collection, comprising 10,000 pieces, clocked a staggering overall market cap of 1,448,475 ETH, and an impressive floor price of 153 ETH, according to data from OpenSea and CoinGecko. But following a gradual ebbing of enthusiasm for NFTs, these statistics made a precipitous tumble to 322,930 ETH and 31.4 ETH, correspondingly.
Interestingly, April 2022 was when another star-studded event unfurled – MoonPay declared a fundraising round of $87 million. Big shots from the entertainment world flocked to extend their support, with celebrities like Bieber, Snoop Dawg, and Drake storming onto the scene. The timing of these investments has led to some conjecture on potential links between them and MoonPay’s financier pool, with social media users arguing that celebrities were being exploited to inflate the value of the NFT market.
The recent month has been distressing for ardent BAYC fanatics, marked by a sinking floor price and shriveling trading volume. The sobering statistics and question marks hovering over the role of celebrity influence serve as salient reminders of the unpredictable and volatile nature that casts a long shadow within the NFT market, even as they offer tantalizing hopes for the future.
Source: Cryptonews
