The dunk from Logan Paul’s NFT
It celebrated YouTuber Logan Paul has seen its $623,000 investment in a non-fungible bee-shaped bumblebee token from the Azuki collection called K4M-1 #03 drop to just $10.
Azuki: successful NFT collection
Azuki’s NFT collection is considered one of the most “valuable” NFTs in the market. The reasons for this are attributed to its creativity and labor-intensive production. However, the value of Logan’s NFT has dropped dramatically due to the crash in the cryptocurrency market.
Logan Paul has invested over 2 million dollars in NFTs the past year or so, with the Azuki NFT being his most expensive purchase to date.
Azuki NFT is not Paul’s only loss. In August 2021, the 27-year-old was found to have also purchased Genesis Rocks No. 65 and No. 68 for $1.55 million. The former has a value of just $25.
A year ago I spent $623,000 on an NFT. Today it is worth practically nothing.
I have immortalized this mistake in 99 originals with an exact copy of the helmet and outfit pic.twitter.com/srD2h4SgO7
— Logan Paul (@LoganPaul) 13 July 2022
Paul certainly lost a lot of money, but not as much as it seemed.
Logan Paul: An apparently failed NFT investment
According to DappRadar, Paul’s NFT is worth approximately $7,272 or $5.51 Ether (ETH) . The valuation underscores the nature of NFT pricing, even in the current bearish market.
DappRadar’s NFT estimates can be controversial. Twitter has exploded over the valuation of Three Arrows Capital’s Starry Night portfolio. But there’s really no universal way to value NFTs, and in the end DappRadar’s valuation turned out to be higher than Nansen’s shown here:
7/ Their current estimated portfolio value* is 625 ETH, with 89% of NFTs having low liquidity (less than 35 sales in the last 7 days)
*24H median price, or 7D where no sales last 24H
Source: pic.twitter.com/aZykqEOSqS
— Nansen 🧭 (@nansen_ai) 4 October 2022
DappRadar says the tool uses an automated calculation algorithm to determine appropriate prices based on market conditions.
“Our algorithm calculates what the price of an NFT is, which is consistent with historical sales data. It’s not about predicting accurately, but finding a price that makes sense for current market conditions. This methodology allows the investor to assess how good the trade-in price is, while at the same time assessing the importance of the sale in the fundraising market.”
a DappRadar spokesperson told CoinDesk in an email.
In total, DappRadar puts Paul’s NFT collection at just under $1 million.
In December 2021, Paul tweeted that he spent $2.645 million to assemble his NFT collection.
started collecting NFTs this year…
– bought 139 in total
– spent $2.645 million
– first collection: @worldofwomennft 😌 pic.twitter.com/ci7p9TXoRe— Logan Paul (@LoganPaul) 25 December 2021
Now it’s worth about 37 percent of what he paid for it. While most NFTs in the collection have suffered double-digit losses, there are also some double-digit gains:
Non-fungible tokens record ownership of digital and physical assets through a blockchain or cryptocurrency network.
Today, many have envisioned it as a profitable way to sell digital art.
Unfortunately, NFT trading volume has fallen by 97%, with BTC holding steady in the $19,000 to $19,500 range until four days ago, but financiers are waiting for convincing evidence that the recovery can happen.
The biggest driver is clearly the ongoing global economic recession: prices continue to rise at an alarming rate around the world.
