Steve Aoki Invested $1.6M In NFTs, His Stake Is Now Worth $33K

Steve Aoki Invested $1.6M In NFTs, His Stake Is Now Worth $33K – What Went Wrong?

Updated: 24 July 2023

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The recent general crypto bear market continues impacting various businesses, institutions, and investors who previously invested in the non-fungible token sector. The NFT market downturn began last month, leaving many NFT investors in massive losses.

DJ Steve Aoki Loses Over $1.5M In NFTs

Steven Hiroyuki Aoki, an American DJ, music producer, and crypto investor, is a perfect example of an NFT investor who has recently experienced a substantial decline in the value of several blue-chip non-fungible tokens he previously purchased.

According to Liam Herbst’s calculations, an on-chain data researcher and NFT influencer, Steve Aoki, once acquired some NFTs for a total of $1.6 million. Based on their highest current bid, these NFTs are now worth just only around $33,000.

How Steve Aoki turned $1.6M into $33K trading NFTs ↓ pic.twitter.com/qnuWNgv2vM

— Liam Herbst (@liamherbst_) July 22, 2023

In 2021, Steve Aoki added some non-fungible tokens to his portfolio. Among the notable NFTs that have taken a significant flip in value is the Doodle #2238, which Aoki purchased for an astounding $862,000. At the time of publishing, the highest bid for this NFT stands at just $12,000, leaving Aoki in massive losses if he wants to redeem it in cash.

1. Doodle #2238

Steve splurged $862k on this NFT.

He was so ecstatic that he stopped a set to show it off. pic.twitter.com/g0U7o0Bwy4

— Liam Herbst (@liamherbst_) July 22, 2023

The Cool Cat #8665 is another NFT collection Aoki bought for roughly $123,000 in late 2021. Again, the NFT collection has suffered a substantial devaluation amid the recent market downturn. The NFT collection now has the highest bid of $4700.

Adding to the list, Aoki bought three Moonbirds, an NFT collection digital artist Kevin Rose, featuring a limited edition of 10,000 NFTs, for $297,000 in late 2021. Amid the recent bear market, these NFTs have experienced an astonishing 97% decrease in value.

In addition, the digital artist bought Cryptomories #1026 NFTs collection for $483,000.The NFT collection recently sold for just $15,000, leaving Aoki with a staggering loss of $468,000 on this particular investment. Aoki now holds more than 13,000 NFTs worth around $1.05 million.

Herbst calculations confirm that Steve Aoki’s investments are now worth $33,000, attracting more than a $1.5 million loss from his $1.6 million investment in NFTs. Moreover, Aoki’s 13,000 NFTs were valued at an impressive $8.8 million in June, highlighting the substantial depreciation in their worth.

What Went Wrong?

Non-fungible tokens came into the spotlight sometime in 2021. NFTs, which are unique digital assets that represent ownership of artwork, music, or images, have gained considerable popularity since their inception. But, in recent weeks, NFTs have suffered a brutal comedown, exposing investors to potential risk, as seen in Aoki’s incident. What went wrong?

Some reasons for the recent NFT crash include the broader crypto market volatility and NFT wash trading. By description, wash trading is a form of market manipulation in which an entity or collector simultaneously sells and buys the same NFTs, creating a false impression of market activity without incurring market risk or changing the entity’s market position.

The market volatility underscores the importance of careful consideration and research when investing in NFTs and the crypto art market as a whole. As the market continues to mature, investors must remain vigilant to make informed decisions in this dynamic and ever-changing industry.