The Truth Behind the Sensationalized Fall of Logan Paul’s NFT Collection in 2022

Many internet celebrities tried to ride the crypto and NFT trend. When an NFT marketplace rolled out, it was the opportunity for many Youtubers, social media influencers, and digital celebrities to cash in and cash in big. But it isn’t just exclusive to digital influencers - traditional celebrities like Paris Hilton, Lindsay Lohan, and Bella Hadid, have also jumped on the bandwagon. Millions of dollars have been made through digital assets such as NFTs, and Logan Paul’s buy-in in 2021 should have increased his net worth, but it all backfired. His Azuki collection, acquired for $623,000, is only valued at $10 today. 

Logan Paul’s losses aren’t as great as they seem

Media has a way of sensationalizing news because content is king, especially in the current digital age. Logan Paul is an avid investor and wouldn’t have sat idly by when his assets began depreciating. His diverse portfolio protects him from the worst of it, but his own creativity and initiative stopped his investment from disintegrating into nothing. During the downward trend in value over his Azuki collection, Logan Paul announced that he created a whole new set of NFTs called Originals 99 which was used to offset his losses. So while Logan really did lose out on his initial investment, the big picture showed that he didn’t lose much money thanks to his own initiatives to salvage and make the most out of his predicament. 

Is the cryptocurrency bubble bursting?

The fall of the cryptocurrency market has led to many crashes. It is worth noting that when Logan Paul bought the items, the NFT transactions were at their peak, with over $500 million worth of transactions per day. At the time of writing, transactions have dipped considerably, with daily transactions struggling to exceed $10 million. 

NFTs weren’t the only thing that Logan Paul invested in. His portfolio was bursting with bitcoin and alternative coins. Having hit their peak last year at 2021, Logan Paul isn’t the only one reeling from his losses. 

But that doesn’t mean that the downward spiral will not pick up in the future. If we take a look at cryptocurrency trends, there are moments where it goes up and down, much like any other asset. However, it is also true that crypto and digital assets are much more volatile and while stocks on the market may dip or rise in increments, NFTs and crypto may go from a value of $10,000 to $10 in just a matter of days. 

Keeping this in mind, there is no bubble to burst. In order for a bubble to exist, its price movements have to be “unrelated to its underlying value,” according to Coindesk, an authority on the topic of cryptocurrency and digital assets. 

Are NFTs and crypto here to stay? 

Digital assets might seem like a novelty, but they’re being taken seriously by many corporations and industries, which calls one to ponder: Are they really here to stay? 

There will always be naysayers and cynics, but those that do not take risks will never see great returns. That’s the fundamental basis of investing and those that will get on the digital asset bandwagon are people who might ultimately turn a profit on it. As long as there are investors willing to take risks on NFTs and crypto, it could continue to flourish. 

NFTs have a huge untapped potential in business utility. According to CoinTelegraph, “There is pervasive fraud in supply chains with countless incidents of double financing, where malicious actors use copies of the same paperwork to illegally obtain money from multiple sources. With blockchain, this will disappear overnight as each and every shipment can be represented by only one single NFT that documents everything delivered — and, indeed, tracks it every step of the way.”

This makes NFTs more than just digital fine art collections, a definition which has been adopted by the masses. It can indeed also be a viable investment opportunity especially since it represents a higher level of security. Due to their nature, NFTs make forgery much harder. 

Blockchain has spearheaded the path for revolutionary systems in the medical, financial, and education sectors. Creating secure databases is no small feat and bitcoin was able to supplement the technology needed. Even if cryptocurrency were to disappear over the next few years (though it is highly unlikely), blockchain would probably continue to be in use. 

What will be Logan Paul’s next move?

While there’s no predicting what Logan Paul might do next, it wouldn’t be too farfetched to imagine a new NFT collection on the horizon. We should expect to see more daring acquisitions in the near future because it has all paid off one way or another, especially in the hands of an entrepreneurial spirit like Logan Paul, who has survived setbacks in the past and continued making comebacks following his mistakes.