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Justin Bieber’s BAYC Investment Declines with Paper Losses Reaching $1.24 Million Over 18 Months
Justin Bieber may be a legendary performer, but his approach to investing in NFTs has not proven successful. The well-known Canadian pop artist invested $1.3 million in a Bored Ape NFT last year, which has since plummeted in value to approximately $59,000.
Diving into the much-publicized NFT market during the digital asset bull run appeared to be a promising and thrilling enhancement to the investment portfolios of numerous celebrities. Nevertheless, many who endorsed these non-fungible tokens have struggled to avoid the challenges that ensued.
Justin Bieber’s NFT Losses
Bieber’s involvement with NFTs began in January 2022, a time when the sector was thriving with celebrity endorsements. The global pop icon invested 500 ETH, equating to $1.3 million, in BAYC. Eighteen months later, his unrealized loss amounts to $1.24 million.
BAYC consists of 10,000 Bored Ape NFTs—distinct digital collectibles residing on the Ethereum blockchain. The once-leading collection has experienced a significant drop in its floor price, which has fallen below 30 ETH, marking a multi-year low not observed since October 2021. The current condition of BAYC reflects a broader downturn in the NFT market. Other notable collections, including MoonBirds, MAYC, Azuki, and Doodles, have also seen declines in value recently.
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Bieber is not the only celebrity to incur financial losses from NFT investments due to the volatile market conditions. Last year, the unrealized losses for soccer player Neymar Jr. and renowned rapper Eminem were reported at $700,000 and $300,000, respectively.
American singer and “Queen of Pop,” Madonna, also faced significant unrealized losses with her NFTs after acquiring an evil eye ape and subsequently witnessing a decrease in its value.
Legal Troubles
In addition to falling prices, legal issues have also emerged for these celebrities. In December, NFT investors filed a lawsuit against the creator of the popular BAYC NFT collection and its promoters, including high-profile figures like Madonna, Paris Hilton, and Justin Bieber, for allegedly utilizing these celebrities without disclosing payments made to them to artificially inflate sales and mislead buyers into purchasing the collectibles.
The proposed class-action lawsuit, lodged in a federal court in Los Angeles, accused Yuga Labs, Hollywood agent Guy Oseary, and MoonPay USA of leveraging their connections with prominent musicians, athletes, and celebrities to deceptively promote and sell Yuga financial products.
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