The ongoing crypto winter has caused million-dollar losses to the well-known YouTuber Logan Paul.
The American YouTuber, actor, and social media personality – Logan Paul – sits on a $623,000 unrealized loss due to his investment in a non-fungible token (NFT), part of the Azuki collection.
His interaction with cryptocurrencies is not successful, too. Due to the market crash, the valuation of his holdings has shrunk by over $500,000.
Logan Paul’s Crucial Paper Losses
Similar to many other individuals, the popular YouTuber hopped on the crypto bandwagon last spring when the prices of most assets were skyrocketing. Several months later, he joined the NFT craze, too, spending over $2.5 million on such art. The pearl of his purchases was an item part of the Azuki collection, which he acquired for $623,000.
The shaking condition of the cryptocurrency industry and the NFT niche, though, have caused severe financial losses to the YouTube star, at least on paper. As Paul recently revealed himself, the Azuki NFT currently trades at $10 – a severe plunge that caused controversy among the crypto community.
Many Twitter users mocked the celebrity for his decision to interact with non-fungible tokens at a time when there was evident hype in the space. Others claimed that digital collectibles are scams and that people should stay away from them. However, some believe the price collapse is due to the ongoing bear market and that its valuation will head north once the next bull run steps in.
It is worth noting that when he bought the items, the NFT transactions were at their peak. At one point last summer, OpenSea’s trading volume surged to over $500 million for a single day, while in the past few months, it has struggled to exceed $10 million.
Apart from NFTs, Paul has diversified his portfolio with bitcoin and alternative coins. Not long ago, he admitted being down around $500,000 on those investments since he entered the ecosystem at its all-time high levels last year.
Unfortunately for many who have done the same, the cryptocurrency market has taken a major hit this year, and its total capitalization stands at less than $1 billion (compared to $3 billion 12 months back).
KSI is Down Millions
Another YouTuber who took a major punch by the crypto market descent is the British rapper JJ Olatunji, a.k.a KSI.
In May, Terra’s native token – LUNA – started crashing, and he used the opportunity to speculate that the price will eventually reclaim its previous heights. KSI allocated $2.8 million of his wealth in the asset when it was trading at around $25.
Contrary to his expectations, the token continued its downtrend and collapsed to virtually zero, wiping out the rapper’s multi-million investment.
KSI is a huge proponent of the cryptocurrency sector, particularly bitcoin. Last year, he argued that BTC will play a key role in the future monetary system. The rapper went further, saying that if he were the Prime Minister of the UK, he would have given each resident £100 worth of bitcoin.
KSI sees BTC as the right investment tool for the long run. In his view, those who have some exposure to the asset will “be laughing” in 10 years:
“I feel like a lot of people are not really seeing that: they’re trying to look for quick money like, ‘Oh, I want to get in and out.’ This is a long-haul thing, and I’m here for the journey.”