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NFTs Supported By Celebrities May Damage Investors Financially

Frank Hamilton

In 2021, the NFT wave revolutionized digital art, and in 2022, numerous NFT collections popular with celebrities like the CryptoPunks and the Bored Ape Yacht Club have achieved new all-time highs in their respective markets. Celebrity NFT purchasers have been said to have spent hundreds of thousands, if not millions, of dollars for a non-fungible token.

Celebrity NFT investors, if they haven't already sold, will still be holding on to their investments in mid-2022, when the excitement over NFTs is expected to wane down. The opportunity to invest in an obscure NFT project arose when Floyd Mayweather began promoting it on Twitter this year. Tyler leaped at the chance. Tyler's "greatest motivation" in martial arts training had previously been boxing superstar Floyd Mayweather.

In the meanwhile, Tyler was seeking investment prospects, and he decided to pay attention to "Money May" Floyd Mayweather, who often refers to himself as such. Everyone, please go grab a Bored Bunny NFT right now, Floyd Mayweather told the crowd in a Louis Vuitton vest with a diamond bracelet, a gold watch, and a Louis Vuitton necklace.

Celebrities Follow Trends, Or Maybe They Know Something?..

Timbaland, better known by his stage name Timothy Zachery Mosley, is a record producer, songwriter, and rapper. Timbaland has a deep interest in music and has contributed to the albums of several well-known performers. Among the musicians he has worked with are Jay-Z, Snoop Dogg, Ginuwine, and Ludacris, to name a few. There are 10,000 Bored Ape NFTs, and Timbaland purchased #590 to join the highly rare Bored Ape Yacht Club, which is one of the most costly NFT collections in existence.

Bidding wars have only broken out for particular NFT artworks by artists like Beeple and Pak. In addition to his golden cardigan, dark brown eyeglasses, and gold chain, Number 590 is a five-trait ape dressed to the nines. It cost him 74.69 Ethereum to get his monkey. But this isn't the most important development. Ape-Via Productions, Timbaland's new company, was introduced in a tweet. Music and animation for metaverse apps will be developed on this platform in conjunction with Yuga Labs.

Marshmello is among the most known celebrities who own NFTs. He is a famous electronic music DJ who is globally known for his music style and performance. He has a number of the most celebrity NFTs.

Since he first gained prominence in 2015, Christopher Comstock has gone on to have some top hits, several of which have amassed over a billion views on YouTube. Before changing his Twitter profile image to a CryptoPunk, Marshmello was an unknown NFT whale. A KaijuKing NFT was added to the artist's collection in October 2021, which is believed to be worth more than $1 million. In all, he possesses 3,333 NFTs, of which his KaijiKing #1680 is one. It cost him 5.88 ETH, which is around $17,000 in today's money. Marshmello, another well-known Bored Ape NFT owner, also owns a CrypToadz, Wicked Craniums, and other CryptoPunks, in addition to KaijuKing. According to rumors, CryptoPunk #8274, his most expensive NFT, sold for a whopping $427,000.

As a result of its vintage pixelated visual style, NFT owners have a cult-like following in the NFT community. They were initially produced by Larva Labs and then bought by Yuga Labs. Justin Bieber, perhaps the most recognizable name on this list, is also a well-known investor in the NFT sector. Immediately after he purchased a Bored Ape NFT, Justin shook up the NFT market by purchasing an Alien Frens NFT.

It cost him 2 ETH to buy Alien Frens NFT, but that price immediately soared to 3 ETH once word of his celebrity NFT purchases spread. Aliens Fren #8591 was added to Bieber's ever-expanding collection of celebrity NFTs, which currently includes BAYC, Clone-X, MAYC, Doodles, and World of Women. There were several negative reactions to Bieber's acquisition of his Bored Ape on the internet. It was pointed out to him by many admirers and NFT investors that he acquired an NFT with "no unusual qualities" and at a five-fold increase in value. Bieber is indeed one of the most popular NFT collectors among celebrities, although some of the criticism is valid.

Celebrity NFTs That Weren’t Successful

When it comes to investing money in NFTs it should be mentioned that there are many celebrities whose projects are failing. Logan Paul, a controversial YouTube "content producer" with over 23 million followers, is unknown to many crypto aficionados. Young people were the bulk of his target audience, and he was happy to sell them everything he could. The "CryptoZoo" project of Paul's NFTs began in September of last year with the hatching of animals from NFT eggs. Adobe has made these photographs easy to find with a simple image search. CryptoZoo is described on the NFT OpenSea marketplace as "an addictive game with actual value," according to Paul, who said that he invested more than $1 million in its creation.

On the NFT market in 2021 Logan's younger brother, Jake Paul, also made a name for himself with his efforts. The NFT initiative "StickDix," which began in November and features artwork depicting hand-drawn stick figures with larger penises, credits Paul as one of its creators. An influencer marketing budget of $ 300,000 will be used to bring new products to market, such as the apparel chain "Stick Dix," according to the project plan.

Daniel Hernandez, also known as Tekashi 6ix9ine, has reportedly stepped down from an NFT project. Last month, several investors labeled it a "huge fraud." One of the project's Discord moderators allegedly hacked the network and spammed a bogus NFT minting link, prompting the user to cheat, as reported by Rolling Stone on December 17th. The "Trollz Collection" team has opted to halt production and restrict the project to 4,797 NFTs in reaction to the assault. Tekashi 6ix9ine also altered his NFT profile photo and erased his social media tweets on the project. Tekashi 6ix9ine's connection to the project and its plan, which promised the development of blockchain games and governance rights and charity contributions, prompted an investor called Jacob to put up $40,000 in the initiative.

Why Do NFTs Fail?

If the founders of NFT initiatives and brands aren't able to effectively execute their roadmap to establish a long-term and sustainable company, they'll all fail. Many NFT initiatives are little more than a means to an end, with no regard for the digital asset's intrinsic worth or usefulness.

The majority of NFTs and other digital assets will drop dramatically, similar to the internet mania crash of 2000. And not just for a short period, but for good. In the NFT market, the supply now surpasses demand, as does the absence of genuine value and usefulness underpinning most NFTs.

People will begin to see the difference between a useful NFT and all the useless NFTs that are now flooding the market when huge businesses, brands, and innovators begin to investigate and implement NFTs for their purposes. A common misunderstanding among modern-day NFT producers and investors is that NFTs are a technology platform that can be utilized to either develop a brand from the bottom up or to enhance the value, trust, and transparency of already existing ones. When it comes to creating NFTs, many of the developers have instead generated nothing more than an image that has no true worth or purpose. They aren't doing anything for their customers other than selling the NFT.

You'll also notice a lot of news articles about individuals earning a lot of money by trading NFTs in the media. There is a common misunderstanding that NFTs are a fraud or that they can earn you a million dollars overnight, both of which are incorrect to some extent.

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