People Who Lost Serious Cash on NFTs

An illustration of the Ape NFT artwork in a frame surrounded by discount tags.

Illustration: Natalie Moreno

If you had to pinpoint the moment when the NFT bubble was at its most swollen, it would definitely be when Paris Hilton walked away The Tonight Show Starring Jimmy Fallon In January 2022. It was a fever dream of an interview, in which Fallon and Hilton had a stilted and puzzling conversation about their recent investment in Bored Ape Yacht Club NFT artworks. “I wanted something that reminded me of me,” Hilton said. Fallon showed a photo of a monkey wearing a hat and sunglasses and the audience applauded. Jump ahead a year, and the vast majority of NFTs are now nearly worthless, according to a report from dappGamble. An NFT of the first tweet – from former Twitter CEO Jack Dorsey, which read “Just setting up my Twitter” – which sold for £2.3 million in 2021, is now worth around £1,200. In August, it was reported that a group of collectors who invested in Bored Ape NFTs were filing a lawsuit against several celebrities (including Fallon, Hilton, Justin Bieber, and auction house Sotheby’s) who they believe That they had mismarketed the artefacts and deliberately inflated their prices. But for most investors, high profile lawsuits will not be an option. Instead, they are left to reflect on their loss and move on with their lives. So who are left to suffer the consequences of this collapse? And what will they do with their wasted investments? We interviewed five NFT investors – whose losses ranged from a few thousand quid to $5 million – about what went wrong, what they’re going to do next, and how they feel about the future of NFTs.

Kyle Heise, 32, San Francisco – down $2,050

VICE: How do you feel about the losses?
Heise:
As for the overall mindset, I feel fine. I never invested much. But I know many people whose health has become very serious. I’ve seen people investing heavily in NFTs who have gone bust, getting a job delivering pizza because they spread themselves too thin. I’ve heard of heart attacks and suicide attempts – seriously terrifying and dire situations.What’s going on in the NFT space now?
First of all, there are really negative associations with these communities. They are full of boastful and arrogant people who made a quick buck and somehow think that getting rich from some random JPEG purchase makes them better people. But I’ve also seen NFTs do some really great work: supporting struggling artists, giving people jobs, and even bringing attention to the world plastic crisis at the UN summit in Kenya. NFTs are really going to change many industries in a positive way. Secondly, the truth is that many of these NFT projects are owned and transferred between only a few people. This leads to internal strife and hysteria in these small social groups. Hype and FUD (fear, uncertainty, doubt) grow like wildfire. This creates some strange situations.

Thorne Melcher, 35, Atlanta – Under $5,000

VICE: How much money did you lose?
Melcher:
The value of my collection has dropped by about $5,000 from its peak. I’ve never been one to spend a lot on things that I thought were too expensive, like boring apps. I paid almost three grand to get two crypto coins [witch-themed NFTs] Now its price may be a few hundred rupees at most. I still like them, but that decline is a sign of how bad the NFT market has become.Do NFTs have a future?
Absolutely! Not exactly the way people were expecting a few years ago. Anti-NFT people often compare them to Beanie Babies or tulips, but both of these are still popular, well-selling items. Just need to focus more on that specific buyer who derives satisfaction from the NFT itself; Because what it opens up is the art itself or the importance of owning it. This isn’t going to control boring monkey-level prices, and that’s okay. I’m sure we’ll see more super expensive NFTs in the future, but as long as this defines the space, it will hold back their appreciation and adoption by a wider audience. It inevitably takes a certain type of person to chase gambling winnings, but most people enjoy collecting things that, in the words of Marie Kondo, “spark joy”.

Joseph Skewes, 39 – Under $50,000

VICE: How much did you lose on NFTs?
Slant:
The value of the NFTs I owned peaked around September 2021. I remember they were worth north of $50,000 at one point, based on market prices. I still have most of them – I couldn’t sell most of them even if I wanted to; I’ll be 95-99 percent below peak prices. I’ve probably been out of pocket by $2,000 over that period, but since the peak, the loss is upwards of $50,000.How did you feel about the loss?
I regretted not being able to sell at the top. I could sell, buy back my favorite artworks, and pay off more of my mortgage. I don’t think much about it today; I simply enjoy the NFT collection I have, and continue to buy more from time to time. I’m currently building a startup with several other co-founders that aims to help people showcase their favorite NFT collectibles and art.

Robin (name changed for privacy reasons), 32, Florida – as low as $300,000-$400,000

VICE: How much did you spend on NFTs?
Robin:
When NFTs caught my eye in 2020 I only had $10,000 in crypto. During the 2021-2022 bull run, I went all out and fortunately turned $10,000 into $800,000. My biggest win (90 percent of my profits) was buying Bored App before it became popular.How much money did you lose?
It was all downhill after April 2022, as both NFTs and crypto were in free fall. I luckily sold all my Bored Ape assets for $800,000. After the 2022 crash, I got back into NFTs and memecoins and have been pretty unsuccessful since then. I have lost about $300,000-400,000 trying to trade these assets.Describe how you felt about those losses then and now?
I felt invincible in earning $800,000, so I was willing to spend a lot more. But after losing 50 percent of my profits, it was troubling. So I’ve gone back to my original strategy, which is to sit on my hands and wait for the next crypto bull run. I try to resist most NFT and memecoin temptations, even though I want to keep buying.

Sergey Sergienko, 41, Sydney – $4.995 million less

VICE: How much did you spend on NFTs, and how much were they worth at the peak of their value?
Sergienko:
Personally, I have spent about $500,000 on NFTs and they have reached a peak value of at least $5 million. I “lost” at least $4.995 million, as the current value of those NFTs is close to $5,000.How did you feel?
To tell you the truth, I am used to losing money wildly. I have been into crypto for a while. You always get these ridiculous gains and then substantial losses. I’ve seen it all before, and the NFT promotion wasn’t my first rodeo. However, I can understand how upset an average person would be. The first time I lost everything, I was devastated and I found some kind of sanity in alcohol. Then I threw myself into work and new opportunities, one of which was crypto.Will you continue to participate in buying and selling NFTs?
I would definitely participate in the NFT economy in whatever form it takes. It is generally very beneficial to be ahead of everyone else – it can be said that the early bird gets the worm. NFTs are just at the beginning of their journey. I’m sure there are a lot of opportunities ahead. We are just getting started.

Source: www.vice.com

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