The controversial social media personality/pro wrestler/ noted NFT fanboy, Logan Paul, has confirmed that he has lost a lot of money on his NFT investments, and the 27-year-old breaks down the price of one of his favorite NFTs has fallen to “nothing at all”.
The NFT in question is K4M-1 #03 from the 0N1 Force series, a series of anime-inspired avatars. Paul reportedly purchased the NFT in August 2021 for an impressive $623,000 – but currently it is just worth about $10 (though some are offering Paul about $2,900 for it).
However, this is only the tip of the iceberg when it comes to Paul’s losses. In December 2021, Paul confirmed that he has spent nearly $2.7 million on his NFT series, but according to Yahoo Finance, Paul’s whole NFT portfolio is currently worth about $889,000 — a loss of about $1.8 million.
Apart from this, Paul continues his hard-core enhance of NFTs, even using the loss he suffered on this 0N1 Force number as the inspiration for yet another NFT in his own NFT series, named 99 Originals (that itself has seen its value tank in the last few months). Very meta… and if I keep having to type “NFT”, I am going to do my head in.
Logan has made his love of alternative asset classes a big part of his public persona. Notably, he made headlines previously this year after he secured the Guinness World Record for the most expensive Pokémon trading card sold at a private sale after, after purchasing a 1/1 PSA 10 Pikachu Illustrator card for US$5,275,000.
Ironically, Paul in fact auctioned off that Pokemon card earlier in the current month, selling it for “just” $480,000 (which involves the $80,000 buyer’s premium) — representing a loss of over 92% for Paul. Guess it is not just his NFTs that are being tanked.
Why are NFTs crashing?
As Curzio Research clarifies, “prices for all risky assets are under pressure as the Federal Reserve raises interest rates.”
“Higher interest rates make safe investments (such as short-term bonds) more appealing to investors. Thus, money is being pulled out of riskier things (such as stocks, cryptocurrencies and NFTs).”