Benzinga - Known for his music, Justin Bieber has become one of the wealthiest people in the world. He has used this wealth in a variety of ways, ranging from philanthropic efforts to venture capital investments. However, a less-discussed way in which the singer has used his fortune is with cryptocurrency. Bieber began investing in cryptocurrency and NFTs in 2021, and the investments have lost quite a bit of value since they were acquired. Let's take a look:
Bieber first began purchasing NFTs in 2021, towards the tail end of the NFT hype wave that stormed the crypto community. In early 2022, Bieber purchased Bored Ape #3001 for 500 ETH, or around $1.3 million at the time.
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Additionally, around the same time, Bieber bought Mutant Ape #922. For this NFT, he paid 28.8 ETH, or just over $70,000.
These NFTs allowed Bieber to access the ApeCoin airdrop. ApeCoin is a governance token that powers the ApeCoin DAO. However, most investors simply see it as a proxy for investing in the Bored Ape NFT projects without having to shell out tens of thousands.
The airdrop occurred in March 2022, and gave out 15% of the total supply to holders of Bored Apes. Specifically, owners of a Bored Ape got 10,000 tokens and owners of a Mutant Ape got 2,000 tokens.
At the time, the airdrop was extremely profitable and delivered huge amounts of value to holders of the NFTs. One month after the airdrop, the price of the token hit a high of $27.60. This means that Bored Ape holders would have received $276,000 from the airdrop, and Mutant Ape holders would have received $55,200.
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Bieber held both of the NFTs, so at one point, his position was worth over $331,000. While this is a long way from the nearly $1.4 million he shelled out to purchase the NFTs, it is a huge amount to essentially receive for free, as Bieber did not directly pay for any of the ApeCoins.
However, Bieber likely regrets not selling the position when it was worth over $331,000. Since hitting those highs, the price of ApeCoin has continually fallen, likely from Bored Ape holders selling their tokens to realize their profits.
ApeCoin has been trading between $1 and $2 for nearly a year, and Bieber's position is worth just $14,000.
This marks an unrealized loss of nearly 96%, since the position was worth as much as $331,000, and is currently worth $14,000.
Bieber has also seen huge losses on the NFTs themselves, which have resulted in a loss of nearly 97%.
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