Top 5 Celebrities Who Lost Millions In NFTs
Like cryptocurrencies, non-fungible shares and tokens are highly speculative investments whose value is often arbitrary. As many people have learned the hard way over the past year, it’s hard to pick and choose which ones will increase in value. However, the financial world will be revolutionized by NFTs and the blockchain technology they rely on.
Everyone was shocked in 2021 when collections of these images were occasionally sold for millions. However, even ardent NFT advocates would admit that the NFT market needed a correction. However, only a small minority of investors saw a return on their investment. Many have suffered losses of millions on their NFT investments. The famous people who lost money in NFTs will be discussed in this article.
Top 5 Celebrities Who Lost Millions In NFTs
Logan Paul
At the height of NFT’s multi-million euro sale last year, the famous YouTuber jumped on the bandwagon. Now it seems this binge has cost him a small fortune.
An NFT that Paul bought for $623,000 is now worth just $10. But this NFT represents only a small part of the huge collection he amassed during the previous year, during which he spent more than 2.5 million dollars. The decline in this NFT over time has been 60% from the peak.
Steve Aoki
Steve Aoki is an electronic music producer and DJ known for his EDM bangers. In addition, he has established himself in the cryptocurrency community as a well-known creator and collector of non-fungible tokens.
However, these investments have not yielded the same level of success as his music. Aoki saw a sharp decline in the value of the assets he owned, including eight Bored Ape NFTs and over a hundred NFTs in total. While diversification has helped him limit his losses, one of the NFTs is “Doodles” which he bought in January for about $346,000 is now worth just $42,000, according to DappRadar estimates.
Snoop Dog
The American rapper, who spent $7.09 million on an NFT called Right-click and Save as Guy, holds the record for the most expensive celebrity NFT purchase.
But according to Open sea, the rapper also owns another non-fungible Crypto Punk token, which was purchased for $1.1 million and is currently valued at $688,251.
Neymar Jr.
The Brazilian soccer star, like many other sports figures, reportedly spent more than $1 million on two Bored Apes Yacht Club NFTs, considered one of the most sought-after non-fungible chip collections, earlier this year.
Unfortunately, Neymar paid a high price to belong to this exclusive club. According to DappRadar, a website that tracks the value of NFTs, his two monkeys, which he bought in January for around $480,000 and $570,000, are now worth $153,000 and $171,000 respectively. The footballer now stands to lose more than $700,000 on paper.
Marshmello
In October 2021, DJ Marshmellow, a world-renowned DJ, joined the NFT trend. For an estimated $1.4 million, he purchased KajuKing #1680. His non-fungible token is listed on OpenSea for $2,137 just over a year later. Between the two, there’s a staggering $1.4 million difference
Almost 60% of NFT trading volume in 2022 was wash trading
According to a recent report, wash trades accounted for nearly 60% of non-fungible token trade volume this year. Wash trading is a type of market manipulation where a trader buys and sells a security to simulate an increase in trading volume and activity in the market.
Wash trades, according to Dune, have gained traction in the crypto industry in 2019. However, it became relevant for the NFT space in 2022. Dune revealed that wash trades account for approximately 45% of all non-fungible token exchange volume on Ethereum. Although it accounts for $30 billion of that volume. OpenSea only accounts for 2.4% of the washing volume and less than 1% of all transactions.
