Famous Youtuber Logan Paul had bought the Azuki Bumblebee NFT, whose price dropped sharply since he first acquired it in 2021.
Many internet celebrities tried to jump on the cryptocurrency and NFT craze. When an NFT marketplace was launched, it was the opportunity for many Youtubers, social media influencers and digital celebrities to cash in and cash out big time.
But it’s not just digital influencers, celebrities like Paris Hilton, Lindsay Lohan and Bella Hadid have also jumped on the bandwagon, all of whom have made millions of dollars through digital assets like NFTs, and Logan Paul’s 2021 purchase should have boosted his net worth but didn’t.
His Azuki collection, purchased for $623,000, is only valued at $10 today.
Logan Paul paid $623,000 for this NFT that's now worth $10 ……
Draw your own conclusions … pic.twitter.com/VCbLVRwpt0
— Wall Street Silver (@WallStreetSilv) September 28, 2022
The Azuki collection
The Azuki collection consists of 10,000 avatars with hand-drawn profile pictures that secure the buyer inclusion in an exclusive Web3 community, airdrops and a Discord community.
Logan Paul initially confirmed that the price of the Azuki Bumblebee NFT had dropped on July 13, 2022, offering a replica of the digital art in a new collection called 99 Originals, a series of Logan Paul NFTs.
At press time, the value of Logan’s collection on OpenSea, which includes NFTs from CryptoPunks, World of Women and Azuki, had dropped considerably.
So much so that the minimum price of the collection was 9 ETH, Logan Uzuki’s NFT had a minimum price of 2 ETH, according to nftpricefloor.
Logan Paul plunged into the world of NFTs in 2021
At the height of the NFT boom in 2021 in which popular collections such as Bored Ape Yacht Club emerged, Logan Paul conducted an NFT sale in February 2021 using Forj, a company that aimed for mass adoption of Web3 and NFT technology. Each of the 3,000 NFT offered was priced at 1 ETH.
After that, the influencer made NFTs from unboxings of his Pokemon card collection, which quickly sold out.
In December 2021, Logan Paul revealed that he had spent $2.645 million on NFTs in 2021, with the Azuki NFT being the most expensive, thanks to declining NFT prices, the value of NFTs from Logan Paul’s Bumblebee collection is likely to be well below his investment amount. According to OpenSea, he currently owns 4500 NFTs.
A difficult year for falling NFT prices
NFT trading volume has fallen 97% from $17 billion in January 2022 to $466 million in September 2022 as broader cryptocurrency markets tanked this year and investors sought to dump speculative assets such as NFTs.
Despite a negative macro outlook, Ethereum’s NFT sales saw a brief surge following the completion of the Ethereum merger in mid-September 2022.
Sales volume of the popular Bored Ape Yacht Club collection soared 187% 24 hours after the merger. Bored Apes is owned by Deepak Thapliyal, CEO of Chain, and actor Seth Green, among others.
CryptoPunks, another popular collection, saw a 56% increase in sales volume, despite sales falling below $100 million for the seventh consecutive month.
OpenSea’s trading volume hit a long-term low in August 2022.
Are NFTs and cryptocurrencies here to stay?
Digital assets may seem like a novelty, but they are being taken seriously by many businesses and industries, which begs the question: are they really here to stay?
There will always be naysayers and cynics, but those who don’t take risks will never see great returns. That’s the fundamental basis of investing, and those who will jump on the bandwagon of digital assets are people who could ultimately profit from them.
As long as there are investors willing to take risks in NFTs and cryptocurrencies, they could continue to flourish.
NFTs have huge untapped potential in terms of commercial utility. According to CoinTelegraph:
“there’s considerable fraud in deliver chains with countless incidents of double investment, in which malicious actors use copies of the identical office work to illegally attain cash from multiple sources. With blockchain, this will disappear overnight, as each and every shipment can be represented by a single NFT that documents everything delivered and, in fact, tracks it every step of the way.”
This makes NFTs more than just digital collections of art, a definition that has been embraced by the masses. In fact, it can also be a viable investment opportunity, especially since it represents a higher level of security.
Due to their nature, NFTs make counterfeiting much more difficult.
Blockchain has paved the way for revolutionary systems in the medical, financial and educational sectors. Creating secure databases is no small feat and bitcoin has been able to complement the necessary technology.
Even if cryptocurrency were to disappear in the next few years (although it is highly unlikely), blockchain would probably still be in use.
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