Global pop superstar Justin Bieber's foray into the volatile world of non-fungible tokens (NFTs) seems to have hit a rocky road. His investment in a Bored Ape Yacht Club (BAYC) NFT has reportedly depreciated by more than 95%, resulting in a staggering loss of around $1.2 million.
The advent of NFTs has seen a surge of celebrity endorsements and investments. These digital assets, unique by nature and based on blockchain technology, have become a new avenue for stars to engage with their fanbase, monetize their brand and delve into the fascinating realm of cryptocurrencies.
Justin Bieber spent over $1.3 million on this NFT last year— Dexerto (@Dexerto) July 3, 2023
It is currently worth $59,000 pic.twitter.com/LwdNkLyRZU
However, the NFT market is notoriously volatile and unpredictable, often resulting in dramatic swings in value. Unfortunately for Bieber, his BAYC NFT fell victim to this volatility. While a steep drop in value is undoubtedly a significant financial setback, it is essential to consider the wider context.
Many celebrities have embraced the NFT culture, but not all have found success. For some, these investments have not been about seeking returns, but rather, they are a part of a larger marketing strategy. By buying NFTs, celebrities align themselves with the forward-thinking digital movement, gaining publicity and fan engagement in the process.
However, not all NFT ventures end in losses. Some stars have made lucrative deals selling NFTs for exorbitant prices. It is a game of high risk and potentially high reward.
For Justin Bieber, whose net worth was estimated to be $285 million as of September 2021, the $1.2 million loss from his NFT investment, while substantial, is likely absorbable. The "Peaches" singer has diversified his income across music, merchandise, endorsements, and now, NFTs, cushioning the blow of the NFT's depreciation.