Kevin Hart, the American actor and comedian, has recently sold a Bored Ape Yacht Club (BAYC) NFT at a significant loss of 83% from its original purchase price. The BAYC collection is a popular NFT collection consisting of 10,000 cartoonish apes with different characteristics. It was created by Yuga Labs, a blockchain tech startup, and is based on the Ethereum blockchain using the ERC-721 token standard. BAYC has been the leading Ethereum-based collection for quite some time.
Hart originally bought the Bored Ape NFT, specifically ape #9258, for 79.5 ETH in early 2022. The NFT features an angry ape with dark brown fur, a spinner hat, and a traditional Cuban shirt. Hart made the purchase during a period when the BAYC collection was gaining a passionate following from numerous individuals. The transaction was facilitated by the crypto payment platform MoonPay, which also assisted other celebrities in buying digital assets.
However, in December 2022, Yuga Labs faced a 100-page class action lawsuit in the United States. The lawsuit alleged that the startup had colluded with celebrities such as Justin Bieber, Snoop Dogg, Madonna, and Paris Hilton to promote the BAYC collection, violating state and federal laws. Additionally, the U.S. Securities and Exchange Commission launched an investigation into Yuga Labs a couple of months prior, accusing the platform of facilitating the unregistered offering of the BAYC collection.
Now, Kevin Hart’s investment in the expensive BAYC NFT has resulted in a significant loss. Based on the price of ETH at the time of purchase, the Bored Ape was originally sold for over $246,400. However, the recent sale made by Hart values the asset at approximately $44,800, considering the current value of ether.
This latest sale, combined with other factors, has brought up the recurring question of whether NFTs are dead. Many people have started to wonder about the future of NFTs due to the decline in engagement within the NFT ecosystem. The prices of certain NFTs have dropped significantly, leading to speculation that NFTs may be losing their appeal. However, the vitality of NFTs depends on their utility. For instance, NFT collections like Pudgy Penguins have gained popularity and are among the top four NFT projects on the Ethereum network due to their unique features and uses.
In conclusion, Kevin Hart’s sale of the Bored Ape NFT at a substantial loss has sparked discussions about the state of NFTs. While some NFTs may be experiencing a decline, there are still thriving projects that demonstrate the continued relevance and potential of NFTs in the digital world.
