Like cryptocurrencies, stocks and non-fungible tokens are highly speculative investments whose value is frequently arbitrary. As many people have learned the hard way over the past year, it is difficult to choose those whose value will increase. However, the world of finance will be revolutionized by NFTs and the blockchain technology on which they are based.
Everyone was shocked in 2021 when collections of these images occasionally sold for millions of pounds. However, even ardent NFT supporters would concede that the frothy NFT market needed a correction. The purchase of NFTs was not even stopped by celebrities. However, only a tiny minority of investors saw a return on their investment. On their NFT investment, many of them suffered millions of losses. The famous people who lost money in NFT will be discussed in this article.
Also Read: Top 5 NFT trading Strategies For Investors 2023
Top 5 Celebrities Who Lost Millions In NFTs
At the height of multi-million pound NFT sales last year, the notorious YouTuber jumped on the bandwagon. It now appears this eagerness has cost him a small fortune.
An NFT Paul bought for $623,000 (£558,000) is now only worth $10 (£9), which is barely enough to pay for a pint of beer in a busy London pub. But that NFT is only a small portion of the vast collection he gathered over the previous year, during which he spent over $2.5 million (£2.24 million). This NFT’s decline over time has been 60% from its peak.
Steve Aoki is a producer and DJ of electronic music known for his boisterous EDM bangers. Additionally, he had established himself in the cryptocurrency community as a reputable non-fungible token creator and collector.
However, these investments have not yielded the same level of success as his music. Aoki has observed a sharp decline in the value of the assets he owns, including eight Bored Ape NFTs and more than one hundred NFTs altogether. Even though diversification allowed him to limit his losses, one of the “Doodles” NFTs he purchased in January for about $346,000 is now only worth $42,000, per DappRadar’s estimates.
The American rapper, who spent US$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 token called Crypto Punk, which was purchased for US$1.1 million and is currently estimated to be worth $688,251.
The Brazilian football sensation, like many other sports figures, reportedly spent over $1 million (£900,000) on two NFTs from the Bored Apes Yacht Club, which is regarded as one of the most coveted non-fungible token collections, earlier this year.
Sadly, Neymar has paid a high price for belonging to this exclusive club. According to DappRadar, a website that tracks NFT values, his two apes, which he purchased in January for approximately $480,000 and $570,000, are now worth $153,000 and $171,000, respectively. The football player now faces potential paper losses of over $700,00.
In October 2021, DJ Marshmellow, a well-known DJ around the world, joined the NFT Trend. For an estimated $1.4 million AUD, he purchased KajuKing #1680. His non-fungible token is listed on OpenSea for a pitiful $AUD 2137 just over a year later. Between the two, there is a startling $AUD 1.4 million difference.
Nearly 60% of NFT Trading Volumes in 2022 Was Wash Trading
According to a recent report, wash trades accounted for nearly 60% of the non-fungible token trading volumes this year. Wash trading is a type of market manipulation in which a trader buys and sells a security to simulate increased trading volume and activity in the market.
Wash trades, according to Dune, gained traction in the crypto industry in 2019. However, it became relevant to the NFT space in 2022. Dune revealed that wash trades account for approximately 45% of all non-fungible token trading volume on Ethereum. Although, it accounts for $30 billion of the volume. OpenSea accounts for only 2.4% of wash trading volume and less than 1% of all trades.
Also Read: Impact Of NFTs In Sports Industry And How Are NFTs Being Used In Sports?