Bored Ape NFT, which Justin Bieber purchased for USD $1.3 million (AUD $1.9 million or £1.09 million), is currently valued about USD $67,000 (AUD $99,910 or £56,310).
The Yacht is Sinking
This year, NFTs were all the rage, and the wealthiest people in the world bought them everywhere. They are simply a digital piece of material that the owner can hold and stand for non-fungible tokens.
But today, according to the OpenSea marketplace, Bieber’s Bored Ape Yacht Club NFT is currently valued at roughly USD $67,340.
And it appears like the yacht—I mean, ship—is still going down.
The once-popular NFTs have decreased by 33% since the beginning of November, according to Decrypt.
After the collapse of the largest cryptocurrency exchange, FTX, owing to a liquidity problem, which decreased crypto prices and, in turn, caused Bored Ape Yacht Club to decline, the values of NFTs are now falling.
Business Insider reports that in April, the value of Bored Ape Yacht Club NFTs was approximately USD $429,999 (AUD $642,989 or £362,521) before the cryptocurrency market crashed quickly.
In other words, it appears that before the year is over, Bieber will need to release another collection of holiday music.
But according to Forbes, Bored Ape Yacht Club isn’t the only NFT that’s losing ground; DeGods prices have dropped by 68%, CryptoPunks’ by 37%, and DeGods’ by 66%.
But why is cryptocurrency falling apart so swiftly in front of our very eyes?
The absence of a regulatory framework that safeguards investors, according to Stephen Diehl, co-founder of the Center for Emerging Technology Policy and co-author of the recently released book Popping the Crypto Bubble.
He stated to MSNBC that cryptocurrency exchanges trade uncontrolled financial assets, such as crypto tokens, rather than regulated financial goods like stocks or bonds.
And unlike the majority of other items on the market, these tokens are not as heavily regulated.
“The absence of regulation of these products is to blame for many of the issues that resulted from the recent crisis.”
“This was one of the most respectable businesses in the entire crypto ecosystem,” he added of the FTX crash. In 48 hours, it blew up. Even though I frequently check at this stuff, I’ve never seen a week like this in the markets.