Justin Bieber bought a Bored Ape NFT for $1.3 million in January. It’s probably worth $70,000 now, according to the NFT Price Floor. The 95% drop in valuation comes after Sam Bankman-Fried’s FTX collapsed, sending crypto prices plummeting. Bored Ape is not the only Ethereum-powered NFT collection affected by the crypto crash.
Pop star Justin Bieber kicked off the year by buying his first NFT Bored Ape Yacht Club for 500 Ethereum, the blockchain currency, which is equivalent to $1.3 million. But the market value or “base price” of each NFT in the Bored Ape collection fell to 58 Ethereum or $70,000 as of Thursday morning – a 95% drop in value, according to data from NFT Base Price.
The value of Bored Ape Yacht Club NFTs has decreased by 84% since April’s peak, with the current floor price being 84% below the April high. Celebrities “aped” into the costly Ethereum NFT collection at the height of the Bored Ape Yacht Club craze earlier this year. Some have even used their Apes to develop merchandise, themed restaurants, and live shows.
However, as a result of the bear market in cryptocurrencies, the price to join the exclusive club has decreased steadily over the past few weeks. And a “floor” Bored Ape, similar to the one that Justin Bieber purchased for $1.3 million worth of ETH in January, is now available for a tiny fraction of that price. As of this writing, the floor price for the Bored Ape Yacht Club, which is the price of the least available NFT listed on a marketplace, is approximately 58.2 ETH, or approximately $69,800, according to data from NFT Price Floor. On Monday, the floor price fell below $60,000 for the second time this month, but on Tuesday it began to rise again during the day.
The plunge in NFT prices follows the crash of crypto exchange giant FTX earlier this month, when the Sam Bankman-Fried scandal allegedly lowered global crypto prices and damaged Bored Ape Yacht Club's NFT ratings. This is because NFT owners are frantically selling them to prevent the price from falling further, according to a report from crypto news site Decrypt. Bored Ape, which includes more than 10,000 NFTs depicting cartoon monkeys in various outfits, is one of the most successful NFT art collections worth over $1 billion.
Prior to the crypto crash, Bored Ape's NFT price peaked at $429,999 in late April in response to the hype surrounding the use of NFT properties for its personal metaverse platform Otherside. However, as sales of NFTs have declined, prices have fallen 82% since that month, reports Decomposer. Apart from Bored Ape, some of Ethereum's top NFT collections have also faced lower levels this month. DeGod's price fell 68%; CryptoPunk Down 37%; and DeGods at 66%, according to Forbes.
Although Bieber has never explained why he bought NFTs, some critics have speculated that celebrities buy NFTs as a status symbol to showcase their wealth and exclusive purchases. Talk show host Jimmy Fallon, model Paris Hilton, and rappers Snoop Dogg and Eminem also own the Bored Ape NFT.