Crypto winter causes million-dollar nft losses to logan paul

The American YouTuber, actor, and social media personality sits on a $623,000 unrealized loss due to his investment in a non-fungible token (NFT), part of the Azuki collection

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.

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, has 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).