Today NFTs or non-fungible tokens are one of the interesting assets for investors. Digital collectibles can be sold for a high price. Specially because most artist sell their NFTs in auctions. Where people bid and rase the price until there is no other competitor. Naturally the artist or the auctioneer creates a hype before the auction. They plan the launching event for a long time and engage with the NFT community to attract as many investors and fans as they can.
Among this well designed hype people can be excited or ambitious, and that can make them one of the biggest NFT losers. Even some of the well known celebrities had failed investments in NFT market. These celebrities are among the biggest NFT losers, because they lost millions of dollars in the market. Many NFTs experienced significant drop in NFT market after the hype around them vanished. Its most likely that they can be sold for a high price only once. The high price that the first investor pays for that NFT is not its actual value, but the result of successful marketing.
For avoiding such losses which happen because of the excitement investors should logically evaluate the NFT by themselves. In this article we address some important factors that can affect NFTs value. Logical evaluation saves you from being one of the biggest NFT losers. When the hype turns off the NFT can have a significant drop, but its not the only problem. Another important point is that the biggest NFT losers had zero market experience. Investing on NFTs requires a certain amount of knowledge and experience. Only professional marketing teams and investors can resell an NFT for a higher price. Unprofessional investors can turn the most valuable NFTs to a failed investment.
Factors that can contribute to losing money in NFTs
One of the common mistakes among the biggest NFT losers is over-paying for NFTs based on the hype. The manifestation of expensive NFTs made people to dream about becoming rich (or richer) by investing on NFTs. In the recent years many NFTs were sold for unimaginable prices. That created a wrong idea for some people. They thought NFTs are supposed to be some assets that everyone can buy and sell.
They overlooked the fact that the most successful NFT artist often have a broad community and a good marketing plan. So one major mistake that the biggest NFT losers make is buying expensive NFTs before becoming familiar with the nature of NFT market.
The significant drop in NFT market that many projects experience can be the result of market volatility. Unfortunately NFT market isn’t stable, various groups, individuals and trends can shift or manipulate the market. NFT market is driven by investors attention and macroeconomic fundamentals. Some NFTs may rise above in the market changes while the others fall. Even the famous NFTs experienced significant drop in NFT market because of its unpredictability. The celebrities who invested on the fame of famous NFTs are some of the biggest NFT losers.
There is an important fact about NFTs that the biggest NFT losers overlook. NFTs have no inherent value. The value of a NFT is determined by the person who holds it. Its in fact a personal matter, someone may look at an artwork and say that’s the most exquisite piece of art, another person may despise the same artwork. The price of a NFT is related to the interest of the buyer. Its about how much the investor is willing to pay.
Another mistake that the biggest NFT losers make is investing on unproven artists. New artists can have great improvement in NFT market but investing on them isn’t without risk. Investing on famous artists is wiser. When you buy a NFT, the potential customers of that NFT are the fans of that artist. When the artist is famous and have created a great community around his art, the number of potential customers increase.
The biggest NFT losers
Justin Bieber
Justin Bieber is one of the biggest NFT losers. He bought this bored ape yacht club #3001 for 500 ETH which was near $1.7 million. It was a failed investment and experienced significant drop. Some say the reason for his loss was paying too much for a over-priced NFT. Now this NFT’s value is less than $100,000.
Neymar JR
Bored ape #6633
Neymar bought this bored ape in 2022 for 159.99 ETH which is over half a million dollar. It was a failed investment and he couldn’t resell this bored ape for the right price.
Bored ape #5269
This NFT was sold to Neymar for 189.69 ETH which is about $650,000.
Neymar JR paid more than a million dollar to acquire 2 pieces of the Bored ape yacht club collections. This digital collectibles lost nearly 70% of their value and their significant drop in NFT market made Neymar one of the biggest NFT losers.
Madonna
The queen of pop music likes to collect NFTs. She has various NFTs in her collection but there is a bored ape among them which made her one of the biggest NFT losers. She bought Bored ape #4988 for $737,000. The recent offers for this NFT are about $35,000.
Logan Paul
Logan Paul the famous youtuber bought K4M-1 #03 for 180 ETH, which is nearly $635,000. This NFT made him one the biggest NFT losers, because no one offers to buy it for a reasonable price.
Snoop Dogg
Snoop Dogg bought the “Right-click and save as guy” from the famous NFT artist XCopy. He paid $7.09 million for this NFT which doesn’t have any value anymore. Snoop Dogg admires XCopy and has acquired a number of his NFTs, but this one had a significant drop in NFT and made him one of the biggest NFT losers.
Steve Aoki
Steve Aoki is a famous American DJ and music producer. He became interested in NFTs. He is creating his own NFTs now but before that he was one of the biggest NFT losers. He bought 8 bored apes for $310,000. Those 8 apes worth nearly nothing now.
Post Malone
Post Malone bought 2 bored apes for $735,000. He bought Bored ape #961 and Bored ape #9039. He entered the NFT market when everyone was excited and Bored ape NFTs were popular among celebrities. After the hype turned off he became one of the biggest NFT losers with two apes that nobody wanted.
Jimmy Fallon
The host of “The Tonight show” is another victim of BAYC. The purchased ape #599 for $225,000 and now it doesn’t worth more than $35,000.
DJ Marshmello
DJ Marshmello is one of the biggest NFT losers. He bought the KaijuKing #1680 for $1.4 million. The average offer for this failed investment is only $1000.
Eminem
Eminem has a collection of more than 100 NFTs but one of them had a significant drop in NFT market and made him one of the biggest NFT losers. He bought Bored ape #9055 for $453,776. The average offer for this NFT is around $36,000 now.
The main reasons for celebrities losses
Unfortunately many of them lost their money for investing on bored apes. BAYC is a famous collection and it became popular among celebrities. The hype that was created by other celebrities and the excitement of finding a good place for investment caused them to make wrong decisions. Many of them bought apes for a price which was higher than it’s value. This was the first time that they invested on NFTs and they didn’t know anything about the rules of this market. Many people think celebrities as the biggest NFT losers. When they hear “the biggest NFT losers” they unconsciously imagine one of the celebrities in their mind.
Overhyped projects who lost their value
Bored Ape Yacht Club
It was a collection of 10000 unique bored apes. This collection is one of the most famous NFT collections specially in social media. Unfortunately it made some of the biggest NFT losers. Although it was at the peak of fame and many celebrities invested on apes, but the value dropped significantly from an average of $350,000 a piece to $42,000. BAYC became a failed investment for many people and made them some of the biggest NFT losers.
Mutant Ape Yacht Club
Another project from the same team that created BAYC. It was a collection 20000 unique mutant apes. At the golden area of the project every mutant ape valued around $100,000. After experiencing a significant drop in NFT market mutant apes now sell for only $8000. The investors of this project are among the biggest NFT losers.
Crypto punks
Crypto punks are some of the early superstars of the NFT market. At least 8 of them are among the most expensive NFTs ever sold with a price near or higher than a million dollar. Imagine such digital collectibles turn into nothing in one year. The collectors of this project are at the top of the list of the biggest NFT losers.
Other blue chip projects
These projectswhere 3 main NFT projects that failed. But there are many other NFT collections which experienced a significant drop in NFT market. Azuki, Nouns, CloneX, Moon birds and Cool cats are some of these projects.
Why else?
There are some other types of projects that didn’t fail just because the hype turned off. They also made some of the biggest NFT losers but with different reasons.
Meme Based projects
Meme based NFTs didn’t have any artistic value or any worth on their own. These NFTs where dependent on the popularity of the Meme and when it waned the NFT experienced a significant drop in NFT market. collectors who bought Meme NFTs are among the biggest NFT losers.
Projects with poor marketing or community engagement
Some artists aren’t successful in marketing or creating a community. The investors who buy their NFTs only fall for the artists style and aesthetics. They become one of the biggest NFT losers when the artist fail to gain attention and no body buys the NFT because the artist isn’t famous.
Projects associated with scams
There are different types of scams that can happen in NFT market. some projects like “The honey pot” and “Evolved apes” created a community of investors with false promises and escaped as soon as they gain profit. The is also phishing websites and emails or social media posts who mimic legitimate NFT market places like OpenSea. There are also projects with misleading advertisement, and pump and dump projects like “The Squid Game” token which dumped the investors. These scamming programs can be actual robberies or digital collectibles that pump by raising hype and then experience significant drop in NFT market. These projects turn their investors to some of the biggest NFT losers.
Conclusion
As a wise investor you should research about the artist and his background. Evaluate the NFT and its art quality. NFTs with no artistic merit often experience significant drop in NFT market. If you want to avoid becoming one of the biggest NFT losers, you should be a good judge and see the true value of a NFT. Collectors should be able to understand the utility and long-term potential of a NFT. Is it going to be forgotten? Is it able to create more hype in future? Does it follow the trends or is it going to be out dated? These are the questions that the biggest NFT losers don’t ask themselves before purchasing their failed investments. The reason why celebrities where among the biggest NFT losers was that they didn’t have any budget limitation. They became the victim of their own FOMO (fear of missing out). A wise investor shouldn’t be affected by social excitements. You should be accountable fore your own investments. Choosing a digital collectible because of its fame is a mistake. Investing on expensive NFTs needs professional evaluation and planning. After you buy a expensive NFT you should be able to create a hype just like the person who sold it to you. Poor marketing leads to significant drop in NFT market. The biggest NFT markets are the people who underestimate this market of get carried away by getting their hopes up. This kind of investors are easy pray for scammers and overhyped projects.
FAQ
There are many factors involved in this matter like rarity, utility, artistic value, the fame of the artist, market trends and …. But the most important factor in any market is market demand. If it has customers its worthy.
Many NFTs lost their value overtime but the market is still thriving. NFT market has its own risks and anyone who hopes to make money by investing in this market must be a professional in many fields. Despite of these difficulties professionals expect exponential market growth in future.
there is no such thing as safe investment, even great projects can experience significant drop in NFT market and create biggest NFT losers. Focusing on project with strong teams, real-world utility, clear purpose, active community and artistic value can increase your chance for success.
