NFTs bought by Neymar for BRL 6 million in January are now worth around BRL 1 million

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Soccer player Neymar Junior entered the world of NFTs at the beginning of the year, when he bought three virtual arts from one of the most valuable collections in the world, Bored Ape Yacht Club, for R$6.48 million. He shared the matter, at the time, through his Instagram and Twitter accounts.

However, with the devaluation of ethereum — the cryptocurrency used to trade the tokens — the value of the athlete’s crypto assets has dropped just over 77%, to BRL 1.45 million, since then.

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He owns NFTs #5269, #6633 and #10953.

Ethereum, like other cryptocurrencies, has lost value since January 2022 amid the cycle of high interest rates by central banks in major economies, which are struggling to contain inflation, says Valter Rebelo, cryptocurrency expert at Empiricus.

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The Federal Reserve, the central bank of the United States, for example, started a cycle of interest rate hikes in March 2022. So far, three interest rate hikes have already been carried out, totaling 1.5 percentage points, with the most recent, of 0.75 percentage point, the highest in more than 20 years.

The expert also pointed out that there are factors that contribute to inflation and are beyond the control of financial institutions, such as geopolitical tensions, wars, rising energy prices, “creating a risk aversion movement”.

Crypto assets are considered risky assets due to high volatility.

Caio Villa, CIO of Uniera, said that there was a pullback (movement contrary to a trend) of cryptocurrency, i.e. leading to a correction in digital assets. “Ethereum grew from March 2020 to December 2021 almost 40 times its value, so it is normal for it to have a drop [neste ano]”.

other artists

Some NFTs from the collection were also purchased by other celebrities, such as NBA player Stephen Cury and American presenter Jimmy Fallon. The tokens of both have lost value.

The basketball player’s crypto asset, #7990, has lost 47.41% of its price since its purchase in August 2021. The US presenter’s, #599, has dropped approximately 59.59% since November 2021.

Bored Ape Yacht Club founders told the CNN Brasil Business in April who were shocked when celebrities started buying their digital art. “It’s really cool to see something that started out so small become something that people are excited about.”

“There are many artists who value being on the cusp of new cultural waves, and so it’s not surprising [que tenham comprado os NFTs]”.

Until the publication of this article, they had no new digital art for sale, but it was possible to buy NFTs from other owners, with prices ranging from R$531,000 to R$110.28 million.

Source: CNN Brasil

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