Pop singer Justin Bieber, who has not hesitated to explore the digital asset sector, has reportedly been exposed to the financial risks that crypto skeptics continue to warn others about. An NFT bought by Bieber last year for a bizarre price of $1.3 million (approximately Rs.10 crore) has now crashed to a price less than half its original value. This drastic change in the value of digital collectibles can be attributed to the ongoing market volatility affecting the entire industry.
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 monkeys in a variety of avatars.
The BAYC NFT #3001, which cost the singer of “Peaches” more than a million dollars, is now reportedly at the price point of $59,090 (approximately Rs. 48 lakh).
The development has been much talked about on Twitter as a warning to potential NFT investors.
Justin Bieber bought this Bored Ape NFT in January 2022 for $1.31 million.
Today it is worth $59,090. pic.twitter.com/SEtUy4TasA
– SAY CHEESE! :lips::cheese_wedge: (@SaycheeseDGTL) July 3, 2023
The price of BAYC NFTs started fluctuating around April, when the overall crypto market also started to slow amid post-COVID-19 inflation in the US.
Due to sequential rate hikes in the US and uncertainty about regularity overshadowing the global Web3 sector, investors flocked out, negatively impacting the digital asset sector.
According to NFT and Web3 analyzers such as OpenSea and CoinGecko, the bottom price of the BAYC NFT collection has fallen significantly in recent months, a new one recorded after October 2021.
The floor price (lowest price of an NFT from a collection) of BAYC NFTs is below ETH 30 (approximately Rs. 48 lakh).
Bieber’s BAYC NFT #3001, which features a tearful tan-colored monkey standing on a “new punk blue” background in a plain black-colored T-shirt, was purchased by the singer for a price higher than listed.
The original price of this piece was around $270,908 (approximately 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 trolls to pay him at the time to attack.
With the price falling, it remains unclear whether Bieber would keep the NFT or resell it for a profit.
