As most NFT enthusiasts will tell you, we are currently in the middle of a crypto winter. This has meant that many assets have seen their value decline significantly and this doesn’t only apply to cryptocurrencies. NFTs from blue-chip collections have also taken a hit, though some more than others.
In one of the most notable so far, an Azuki asset which was valued at $623,000 last year has seen its price drop to just $10. This is notable not just because it was a rare Azuki ‘Bumblebee’ NFT but also because it had been bought by YouTuber and media personality Logan Paul.
Azuki Takes a Dip
One of the things that have boosted NFTs’ public profile over the years has been the way celebrities have embraced them. From Madonna spending hundreds of thousands on Bored Ape to Snoop Dogg practically becoming an NFT evangelist, these assets have become status symbols.
But, at the end of the day, they are also investments and not all investments do well. This is a lesson Paul seems to have learned as he touched on his Azuki’s remarkable value loss on Twitter.
“A year ago, I spent $623,000 on an NFT. Today, it’s worth essentially nothing. I’ve immortalized this mistake in 99 Originals with an exact replica helmet & outfit,” he said in a tweet from earlier this year.
The Originals he was referring to are an NFT replica he made of the Azuki asset. Paul also has his Originals 99 NFT collection which features pictures taken by him that was launched in 2021. Now, his replica piece has been added to the collection and advertised to fans, perhaps as a way of recouping his loss. Sadly, this is not the entirety of Paul’s NFT-related woes.
Back in 2021, he paid $60,000 and $95,000, respectively for two assets from the Genesis Rocks collection, Rock #65 and Rock #68 NFTs. Now, these assets are listed at barely $100 online. These incidents have fuelled many NFT critics who have taken them as evidence of the industry finally being dead.
Trouble in NFT Paradise?
But what has caused such a huge dip in the value of these assets? Obviously, there is the crypto winter which has affected the entire blockchain sector and not just NFTs. As such, even a top collection like Azuki is not immune to the current market condition.
Then there is the state of the resale market as a whole. You might remember that the person who bought Twitter founder Jack Dorsey’s first tweet for millions of dollars struggled to get even a few thousand dollars when he tried to resell it. It seems that for some collections, the value of the assets is in the novelty and once that wears off, so does their value.
This is also a timely development given that there is more of a push within the market towards NFTs that offer utility such as perks and potential income generation.