American Youtuber/influencer/boxer/WWE wrestler Logan Paul’s foray into the NFT market has cost him a cool $600,000 on just one single piece.
Big Fees for nfts
Paul has never been a stranger to controversy, so the world of NFTs and crypto seemed like the perfect space to make bank. In the Spring of 2021, the crypto market was peaking hard, and every content creator was looking to find an angle to create content and make money. Each cycle has its own “next big thing” that people go crazy for. In 2017 it was CryptoKitties, and in 2021 it was NFTs or Non-Fungible Tokens. For the uninitiated, an NFT is a unique cryptographic token that exists on a blockchain and cannot be replicated. These NFTs often represent items in the real world, such as artwork–particularly digital artwork.
It was digital artwork that caught Logan’s eye during this bull run, and the social media star spent over $2.5 million amassing a collection. While he’s estimated to have bought over 450 pieces during his spending spree, his shining star was “Bumblebee,” an artwork that belongs to the Azuki collection. Logan spent $623,000 for this piece on Aug. 24, 2021, hoping it would be worth a great deal more in a couple of years.
Unfortunately for Paul, things haven’t worked out. In a recent Snapchat story, Logan revealed that the piece is now only worth $10. Perhaps he could use the money to buy a Starbucks and make himself feel better about his investment decisions.
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
Never Rains, But It Pours
One thing that has worked against Logan is that he accumulated his collection right at the height of the fervour around crypto, particularly NFTs. While some NFTs can be considered a solid-yet-risky long-term investment, the prices of many pieces were massively inflated due to mass hysteria. It seems as though Bumblebee was one of those pieces. Despite the massive NFT crash, many believe that once the next bull run starts, prices will return to “normal.”
Logan didn’t put all his eggs in one crypto basket; he diversified his portfolio by accumulating large amounts of Bitcoin and other alt-coins. But, again, due to coming in at the height of the last bull market, he’s also down on those investments. In a recent YouTube video, he revealed that he’s down over half a million dollars in those investments.
A problem shared…
One thing that might make Logan feel better is that he’s not alone. Misery loves company, right? Another prominent YouTuber, British rapper JJ Olatunji (also known as KSI), lost over $2.8 million after the LUNA crash, wiping out a significant chunk of his net worth. Nevertheless, Logan and JJ are big believers in the crypto space. Despite their recent losses, they firmly believe it will be worth it in the long run.
JJ summed it up well when he said, “I feel like a lot of people are not really seeing that: they’re trying to look for quick money like, ‘Oh, I want to get in and out.’ This is a long-haul thing, and I’m here for the journey.” In the end, that’s what investment is. You can’t expect things to always go right, and you’ve only lost money when you’ve sold.”
As far as we know, Logan hasn’t liquidated his crypto position, so there’s every chance he’ll make a net profit when the next bull run comes along. Are you in a position to say the same?
