The true story of celebrity NFT investments: from dreams of getting rich to warnings of NFT bankruptcy

The NFT market experienced a dramatic transformation in 2024. Once the shining star of digital assets, it has now become a source of pain for many investors. By observing the high-profile celebrity investment cases, we may gain a clearer view of the true state of this market.

Celebrity Investment Tragedies: Digital Testimonies

The story of Gary V and CryptoPunk #2140

In July 2021, tech investor Gary V purchased CryptoPunk #2140 for an astronomical price of 1,600 ETH (approximately $3,953,216). This investment was hailed as a milestone in digital art. However, by 2024, the NFT’s market value had fallen to around $2,083,456, representing a loss of over 40%.

The experience of Bored Ape Yacht Club (BAYC) holders

Celebrity and billionaire investors rushed to buy BAYC series NFTs. Justin Bieber spent $1,301,550 to buy BAYC #3001，如今價值僅剩約$651,080，縮水超過50%。另一位名人麥當娜購買的BAYC #4988 in January 2022, dropping from $466,461 to $234,388. Neymar even bought two Bored Apes at once, with a total investment of $1,050,000, now worth only $247,007.

The most shocking crash case

Logan Paul bought K4M-1 #03 from the 0N1 Force Collection in February 2021 for 188 ETH ($624,669). In just a few years, this NFT’s value plummeted to $10,516, a loss of 98%. From millions of dollars to just a few thousand, this gap is astonishing.

The Logic Behind NFT Bankruptcies

Inevitable burst of the speculative bubble

From 2021 to early 2022, the NFT market was engulfed in frenzy. Investors weren’t buying art or practical digital assets but were gambling on the next buyer. When the novelty wore off and new buyers stopped appearing, prices naturally plummeted. Such a market driven by speculation cannot rise forever.

Project proliferation leading to value dilution

The NFT market once experienced explosive growth with thousands of new projects flooding in. Most lacked real application scenarios or cultural significance. Oversupply and insufficient demand inevitably caused prices to fall. Only a few projects with genuine cultural status (like CryptoPunk and BAYC) could maintain relative value, while many mediocre projects became worthless.

Regulatory and environmental pressures

Governments are increasingly scrutinizing blockchain activities, with environmental concerns taking center stage. Debates over the energy consumption of proof-of-work mechanisms and questions about financial transparency have shaken market confidence. Investors are re-evaluating the legality and sustainability of NFTs.

Macroeconomic environment cooling

Global economic uncertainty has intensified, interest rates are rising, and the overall crypto market is weakening. In this context, high-risk, speculative assets like NFTs are among the first to be sold off. Capital flows from high-risk assets to safer ones, representing a self-correcting market process.

Is NFT Really Dead? Not Necessarily

Market adjustments do not mean death. In fact, many industry experts believe that the current NFT bankruptcies are a sign of market maturity. After the bubble bursts, truly valuable applications will emerge.

Practical applications in gaming and the metaverse

NFT use in gaming has evolved from mere collectibles to functional assets. Players can truly own in-game items and transfer them across platforms. Virtual real estate and equipment in the metaverse also have tangible economic ecosystems.

Segmentation of the collectibles market

Blue-chip NFTs (CryptoPunk, BAYC, etc.) still retain value due to their cultural and historical significance. They are gradually evolving into pure collectibles, similar to traditional art markets. Meanwhile, the exit of many bubble projects actually improves the overall market’s signal-to-noise ratio.

Emerging enterprise-level applications

Asset tokenization, membership verification, supply chain management, and other commercial applications are being explored. When NFTs shift from speculative tools to practical utilities, they can find their true value anchors.

Conclusion

The journey of the NFT market from frenzy to correction and rational exploration is a process all emerging technologies go through. While investors who suffered from NFT bankruptcies may feel regret, the market is undergoing self-purification. Future NFTs will no longer be playgrounds for speculators but stages for projects with real application scenarios and cultural value. In this transition, rational investors may ultimately be the biggest winners.