Justin Bieber And Michael Jordan Among Celebrities Impacted By NFT Slump Amid FTX Collapse

The FTX collapse has despatched shockwaves to the non-fungible tokens (NFTs) world, too, as celeb traders like Michael Jordon and Justin Bieber have begun to undergo important losses within the worth of their signature digital collectibles and holdings.

Key Takeaways

  • The NFT market is dropping in worth amid the market stoop introduced on by the collapse of the FTX cryptocurrency alternate.
  • A number of celeb NFT traders and endorsers have been affected, together with skilled athletes, performers, and supermodels similar to Michael Jordan, Justin Bieber, and Tom Brady.
  • The ground costs of all main NFT collections have dropped by important quantities from their all-time highs earlier in 2022.

Michael Jordan Loses Over 90%

Former NBA star Michael Jordan is the most recent sufferer, because the basketball legend’s “6 Rings” NFT assortment had misplaced greater than half of its worth by mid-November. He launched his personal NFT assortment in March 2022, with 5,000 non-fungible tokens that can be purchased. The gathering was launched on Solana-based platforms HEIR and MagicEden.

The Solana community, backed by Alameda Analysis, a crypto buying and selling agency affiliated with FTX that’s being wound down, additionally crashed after the FTX collapse. The native token of the community, SOL, dropped 25% previously week. This improvement subsequently hammered the worth of Jordan’s NFT assortment. In March, every NFT was offered at a median of 16.99 SOL, however the value of Solana dropped dramatically, leading to a web lack of over 92%.

See also  What Are CryptoPunks?

Bieber’s $1.3 million NFT is Now Value $69,000

Widespread singer Justin Bieber is one other sufferer of the NFT stoop. In January, he paid 500 ETH or $1.3 million for his Bored Ape Yacht Membership (BAYC) NFT, which has dropped to $69,000 as of Nov. 17 amid the crypto and NFT markets’ turmoil. The BAYC assortment’s ground value—the value of the most cost effective NFT within the assortment—is 58.1 ETH (Ethereum’s native token), or about $75,000.

Tom Brady Faces Lawsuit

The collapse of the FTX crypto alternate hit NFL star Tom Brady, who misplaced massive after taking an fairness stake within the alternate. Tom Brady and his then-wife, Brazilian mannequin Gisele Bündchen, made a big stake funding in FTX in 2021, after already saying a partnership with FTX CEO Sam Bankman-Fried in 2020. Now Brady is amongst celebrities who’re going through a class-action lawsuit that was lately filed towards FTX founder.

Coachella NFT Caught on FTX

The celebrity-studded Coachella Music Competition could also be going through a good greater drawback. Its NFTs offered for $1.5 million, however they’re now “disabled” on FTX amid the alternate’s chapter submitting. Customers couldn’t withdraw Coachella NFTs and different property from the platform as of Nov. 17. Coachella’s group has said that they’re actively engaged on options, however the freeze is a blow for his or her tokens.

The Backside Line

The FTX meltdown has decreased the value of well-known collections similar to Bored Ape Yacht Membership (BAYC) and CryptoPunks. Two weeks in the past, the BAYC assortment’s ground value was $101, 834 which has fallen to $60, 873. One other blue-chip NFT assortment, CryptoPunks, had its ground value at $103, 041 two weeks in the past, which has dropped to $79, 769 as of Nov. 17. It is unclear how lengthy the onslaught will proceed, however NFT traders seem like among the many worst hit.

See also  How Does a Roth IRA Grow Over Time?