Logan Paul’s failed NFT investment

American YouTuber, actor and social media personality – Logan Paul – is sitting on an unrealized loss of $623,000 due to his investment in a non-fungible token (NFT), part of the Azuki collection.

His interaction with cryptocurrencies is also not successful. Due to the market crash, the valuation of his holdings has shrunk by over $500,000.

Logan Paul’s decisive paper loss

Like many other individuals, the popular YouTuber jumped on the crypto wave last spring when the prices of most assets skyrocketed. Several months later, he also joined the NFT craze, spending over $2.5 million on such art. The gem of his purchases was part of the Azuki collection, which he bought for $623,000.

However, the shaky state of the cryptocurrency industry and the NFT niche has caused serious financial losses for the YouTube star, at least on paper. Like Paul recently revealed itself, Azuki NFT is currently trading at $10 – a severe drop that caused controversy among the crypto community.

Many Twitter users mocked the celebrity for his decision to interact with non-fungible tokens at a time when there was clear hype in the space. Others argued that digital collectibles are scams and that people should stay away from them. Some believe, however, that the price collapse is due to the ongoing bear market, and that valuations will head north when the next bull run kicks in.

It is worth noting that when he bought the items, NFT transactions were at their peak. At one point last summer, OpenSea’s trading volume soared to over $500 million for a single day, while in recent months it has struggled to exceed $10 million.

Apart from NFTs, Paul has diversified his portfolio with bitcoin and altcoins. Not long ago, he admitted that he was down about $500,000 on these investments since entering the ecosystem at the highest level last year.

Unfortunately for many who have done the same, the cryptocurrency market has taken a big hit this year, with total capitalization below $1 billion (compared to $3 billion 12 months ago).

KSI is down to millions

Another YouTuber who took a big hit after the descent in the crypto market is British rapper JJ Olatunji, also known as KSI.

In May, Terra’s original token – LUNA – began to crash, and he took the opportunity to speculate that the price will eventually regain its previous highs. KSI allocated $2.8 million of his fortune in the asset when it was trading at around $25.

Contrary to his expectations, the token continued its downward trend and collapsed to practically zero, wiping out the rapper’s multimillion investment.

KSI is a big proponent of the cryptocurrency sector, particularly bitcoin. Last year he argued that BTC will play a key role in the future monetary system. The rapper went further and said that if he was the Prime Minister of the UK, he would give every citizen £100 worth of bitcoin.

KSI sees BTC as the right investment tool for the long term. In his view, those with some exposure to the asset will be “laughing” in 10 years:

“I feel like a lot of people don’t really see that: they’re trying to look for quick money like, ‘Oh, I want to get in and out.’ This is a long-haul thing, and I’m here for the ride.”