During the 2021 bull run, a new kind of digital asset underpinned by blockchain technology took the world by storm. Non-fungible tokens (NFTs), as they are called, are unique digital tokens stored on a decentralized ledger, or blockchain, that serve as the proof of ownership or authenticity for a digital or physical item.
These cryptographic tokens, representing digital collectibles, artwork, music, virtual real estate, or other real-world assets, could be traded or transferred on the blockchain. While the asset class was first introduced in 2014, its popularity peaked between 2021 and 2022, which led to celebrities jumping on the bandwagon to promote or create their own NFT projects.
Paris Hilton, Eminem, Justin Bieber, Snoop Dogg, Steve Aoki, Neymar, and Jake Paul became notable figures in the NFT space, owning highly valuable collections like CryptoPunks and Bored Apes or creating their own digital collectibles and making millions off of them, with some reportedly earning more than from their traditional sources of income.
However, the joy didn’t last long as the crypto market experienced a significant crash in 2022, tanking the NFT market along with it. Sales, trading volumes, and inherent value of the digital tokens plunged. The “Crypto Winter”, as it was known, began in the latter half of that year, following the collapse of the FTX crypto exchange, which contributed massively to the broader market downturn. Subsequent collapses of projects like TerraUSD and LUNA, and macroeconomic conditions, led to further decline, causing significant financial losses to NFT owners.
Despite the crash, some NFT projects and marketplaces continued to show resilience. Yuga Labs, the creators of Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), and owners of the CryptoPunk collection, contributed to 30% of all NFT trading volume on the Ethereum network in a single month in 2022. Meanwhile, Blur, an NFT marketplace that was launched in late 2023, reported a 120% increase in monthly trading volume. However, the overall market volatility didn’t help matters, as many high-profile NFTs lost most of their value.
One study found that 95% of all NFT collections that have ever existed now have a cumulative market cap of ZERO dollars, suggesting that most of them are essentially worthless. No group of people has faced the brunt of the NFT crash as much as celebrities.
In this blog, we will take a look at some famous figures from entertainment and sports who bet huge on NFTs, only to lose everything to the wind.
Celebrities Who Lost Millions To NFTs
1. Justin Bieber
In January 2022, pop star Justin Bieber reportedly spent 500 ETH on the Bored Ape #3001 NFT, which was valued at approximately $1.3 million at the time due to its rarity traits, cultural significance, and public sentiment.
However, the value of this particular collectible dropped significantly over time. By January 2023, it was worth around $59,000, representing a whopping 95% drop from its original price. It should also be noted that Bieber invested over $2 million into his NFT collection, which is now valued at less than $500,000.
2. Logan Paul
The YouTube celebrity entered the NFT market at its peak in 2021, spending over $2.5 million on various coveted collections. However, his eagerness cost him a fortune over time. One NFT that Logan Paul had bought for $623,000 at the time is now worth just $10, dropping over 80% from its peak value.
His NFT portfolio also suffered a significant drop, with reports indicating that the items are now worth around $889,000, a far cry from the $2.7 million he initially invested. However, not all of his NFTs were a total loss, with some, like the “99 Originals collection”, are still priced between $133,000 to $443,000, while his Polaroid NFTs that were sold via an auction fetched between $40,000 and $136,000 each. The Bumblebee ‘0n1Force’, a collection Paul released in 2023, is making a recovery and is currently valued at around $10,000.
3. Snoop Dogg
The American rapper holds the record for the most expensive celebrity NFT purchase, spending $7.09 million on the “Right-click and Save As Guy” collection, which was bought in December 2021. Snoop Dogg also purchased a CryptoPunk for $1.1 million.
However, by September 2023, the Right-click NFT had zero demand and was deemed worthless, while his CryptoPunk is now estimated to be worth $688,251. Snoop had launched a bespoke 10,000-piece collection called “The Doggies” in February 2023, which granted owners access to virtual events and concerts on The Sandbox metaverse. He was also involved with other NFT collections, like the “Stash Box”, which was linked to his album B.O.D.R.
4. Neymar Jr.
The Brazilian soccer superstar spent over $1 million on BAYC #6633 and BAYC #5269 in 2023, which were labeled as one of the most coveted collectibles at the time. However, Neymar paid a high price for his possessions, which have plunged since.
According to DappRadar, his two apes, purchased for approximately $480,000 and $570,000, are now worth $88,742 and $121,992, respectively. He faces potential losses of over $800,000 on his initial investment. Neymar also owns NFTs from the ACESnikers fashion collection, CryptoPunks, and Doodles, all of which have lost a significant chunk of their peak value.
5. Steve Aoki
Electronic music artist Steve Aoki established himself as a key figure in the crypto community by becoming a NFT collector and creator. His personal collection includes BAYC, Mutant Ape Yacht Club (MAYC), CryptoPunks, Doodles, and others that were acquired for a total of $1.6 million. His “Dream Catcher” collection sold for $4.25 million in 2020, and he once flipped a “Hairy” NFT for $888,888.88.
However, the DJ’s investment failed to yield the same level of success as his music. One of the Doodles NFTs he purchased for $862,000 in 2021 is now valued at just $12,000, while another one bought for $346,000 is now worth under $10,000.
