
Pop superstar Justin Bieber has apparently been exposed to the financial perils that cryptocurrency sceptics are always warning people about. Bieber hasn’t shied away from researching the digital asset business. An NFT that Bieber bought last year for the absurd sum of $1.3 Million (approximately Rs. 10 crore) has now fallen to a price that is less than half of what it once cost. The continued market instability that is negatively affecting the whole sector is to responsible for this sharp decline in the value of digital collectibles.
The renowned Bored Ape Yacht Club (BAYC) collection is where Justin Bieber’s NFT is kept. NFTs from BAYC, a digital art site, feature bored-looking apes in a variety of avatars. It has been widely discussed on Twitter as a caution to future NFT investors regarding the development.
Around April, when the general crypto market started to slow down due to post-COVID-19 inflation in the US, the price of BAYC NFTs started to sway. Investors withdrew in large numbers as a result of consecutive increases in interest rates in the US and the persistent uncertainty that hung over the global Web3 industry, which had a negative effect on the market for digital assets.
OpenSea and CoinGecko, two NFT and Web3 analysts, report that the floor price of the BAYC NFT collection has dropped considerably over the past few months and is now the lowest value ever recorded after October 2021. For BAYC NFTs, the floor price is less than ETH 30 (approximately Rs. 48 lakh), which is the lowest price for an NFT in a collection.
The singer paid more than the quoted amount for Bieber’s BAYC NFT #3001, which depicts a tearful, brown ape wearing a black t-shirt standing in front of a “new punk blue” background.
According to Bitcoin.com, the Canadian musician purchased this item for a price that was 300 percent more than its original value at the time of sale, which prompted trolls to criticise him at the time. The piece originally cost about $270,908 (roughly Rs. 2 crore) at the time of sale. It is still unknown if Bieber will keep the NFT or sell it for more money now that its price has dropped.