Justin Bieber's BAYC NFT, Real Value 'Negative' ..."Disposal Gas Fee Burden is Greater"

▲ BAYC (Source: Yuga Labs)

It has been pointed out that the real value of pop star Justin Bieber's Bored Ape Yacht Club (BAYC) non-fungible token (NFT), which he purchased for $1.3 million, has gone beyond $0 and reached negative. Adam Back, CEO of blockchain company Blockstream, estimated that the cost of disposing of the collectible exceeds its asset value, considering Ethereum transfer gas fees.

According to BeInCrypto, a virtual asset media outlet, on September 28 (local time), Back, the founder of Hashcash and CEO of Blockstream, who was cited in the Bitcoin (BTC) whitepaper, debated the value of Bored Ape Yacht Club (BAYC) #3001 token held by Bieber on X (formerly Twitter). When a virtual asset influencer estimated the asset's value at approximately $16,300, Back countered, "Its value is $0." When another user argued for a negative value, citing Ethereum gas fee expenses incurred upon disposal, CEO Back agreed, saying, "Technically, that's correct. You have to pay money to dispose of it."

Bieber purchased the token in January 2022 for 500 Ethereum (ETH). At the time, this amounted to a significant sum of $1.3 million based on market prices. However, criticism arose from the early stages of the purchase, arguing that an excessive premium was paid for a common item that did not include rare characteristics. Currently, the BAYC floor price has fallen to around 6.25 ETH, approximately $16,600. This represents a 99% drop compared to the all-time high floor price of 153.7 ETH recorded in May 2022.

The downturn in the overall digital collectibles market is also accelerating. In June, coupled with the Ethereum price adjustment, the total market capitalization of the NFT sector plummeted to near historic lows, and global corporations like Nike have also withdrawn from related digital studio businesses. With a sharp decline in trading volume across the collectibles market, analysts suggest that the bubble of investment fervor driven by famous celebrities has completely burst.

Back drew a clear line, stating that this depreciation in value is unrelated to Bitcoin. When asked if Bitcoin was also heading to $0, Back dismissed it, saying, "That applies to Bored Apes and other silly NFTs, not Bitcoin." Back recently invested 7.6 million euros in Capital B, a Paris-listed company that incorporates Bitcoin into its balance sheet, supporting Bitcoin's unique store-of-value function.

Despite some views that a celebrity premium might still exist, the lack of real buying demand is hindering a price rebound. Celebrity NFTs, once symbols of speculative frenzy, have now become white elephants that can barely cover their transfer fees, demonstrating the harsh reality of the digital collectibles market.

[Article Key Summary]

-Adam Back assessed that Justin Bieber's $1.3 million BAYC NFT has a negative value when considering gas fees.

-Compared to Bieber's purchase price, the current floor price is approximately $16,600, a 99% drop from its peak.

-Back drew a line, stating that this harsh criticism is limited to NFT collectibles and is unrelated to Bitcoin's intrinsic value.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*