Spending $623,000 on a piece of cartoon art may sound absurd to most but to Logan Paul, it was simply a good investment at the time.
NFTs, or Non-Fungible Tokens, recently took the world of eCommerce by storm when digital memes and JPEGs began selling for millions of dollars. While many were doubtful of this new form of cryptocurrency, some individuals decided to hop on the bandwagon early. Many of these early adopters went on to make millions in this new frontier of digital currency, while others lost thousands of dollars on investments that went sour too quickly to escape.
Paul was one such investor, and he wound up losing more money on a piece of digital cartoon art than most Americans have saved up for retirement. With his initial buy-in at $623,000 in 2021, he has seen his asset drop down to a staggering $10.
The YouTuber gone boxer shared a Snapchat post on Sept. 27 talking about his loss, but since then the NFT has swung slightly in the other direction, currently peaking around $1,900 at the time of publication. This goes to show the sheer volatility of the NFT market and is the main reason why so many powerful investors are still trepidatious about the business.
The Ohio native is not the only one suffering major losses right now. The entire crypto market has taken a plunge in recent months and NFTs have gone down with it, from a trading volume of $6.2 billion in January to a measly $114 million today. This 98% drop has lost billions of dollars for everyone in the business of exchanging digital art, including Paul.
That said, the “Prime” founder’s investments haven't always been so damaging.
The 27-year-old is known to be quite interested in Pokémon cards and recently invested millions of dollars in one that will likely grow in value – check out Logan Paul’s five-million-dollar Pokéman Card necklace here.