Justin Bieber And Michael Jordan Among Celebrities Impacted By NFT Slump Amid FTX Collapse
The FTX collapse has sent shockwaves to the non-fungible tokens world, too, as celebrity investors like Michael Jordon and Justin Bieber have begun to suffer significant losses in the value of their signature digital collectibles and holdings.
Michael Jordan Loses Over 90%
Former NBA star Michael Jordan is the latest victim, as the basketball legend's “6 Rings” NFT collection had lost more than half of its value by mid-November.
He released his own NFT collection in March 2022, with 5,000 non-fungible tokens available to buy. The collection was launched on Solana-based platforms HEIR and MagicEden.
The Solana network, backed by Alameda Research, a crypto trading firm affiliated with FTX that is being wound down, also crashed after the FTX collapse. The native token of the network, SOL, dropped 25% in the past week.
This development subsequently hammered the value of Jordan’s NFT collection. In March, each NFT was sold at an average of 16.99 SOL, but the price of Solana dropped dramatically, resulting in a net loss of over 92%.
Bieber's $1.3 million NFT is Now Worth $69,000
Popular singer Justin Bieber is another victim of the NFT slump. In January, he paid 500 ETH or $1.3 million for his Bored Ape Yacht Club (BAYC) NFT, which has dropped to $69,000 as of Nov. 17 amid the crypto and NFT markets' turmoil.
Tom Brady Faces Lawsuit
The collapse of the FTX crypto exchange hit NFL star Tom Brady, who lost big after taking an equity stake in the exchange. Tom Brady and his then-wife, Brazilian model Gisele Bündchen, made a large stake investment in FTX in 2021, after already announcing a partnership with FTX CEO Sam Bankman-Fried in 2020. Now Brady is among celebrities who are facing a class-action lawsuit that was recently filed against FTX founder.