In early 2022, when the crypto market seemed to be at a high level, and digital collectibles were the ultimate status symbol, pop star Justin Bieber made headlines when he purchased an astronomical 500 Ethereum ($1.3 million value at that time) in order to become a member of the “Bored Ape Yacht Club” (BAYC).
Now it is four years later (February 2026), and the value of that same digital asset (Bored Ape Multi-Bay # 3001) has shrunk to approximately $12,000. It is a financial implosion that would make even the most hardened day trader wince, representing a decline of over 99% from the purchase price.
The “Floor” Ape That Cost a Fortune
Bieber’s entry into the NFT space was controversial from the start, not just because of the price tag, but because of what he actually bought. In the world of non-fungible tokens, rarity often dictates value. Collectors hunt for unique traits—laser eyes, gold fur, or trippy backgrounds—that separate a “grail” from the rest of the pack.
Bieber, however, purchased what is known in the community as a “floor” ape. His NFT, depicting a teary-eyed ape in a plain black t-shirt, possessed no remarkably rare attributes. At the time of the sale in January 2022, the floor price for a Bored Ape was hovering around 100 ETH. Bieber paid five times that market rate.
Shortly after the news broke, Farokh Sarmad, a prominent Web3 entrepreneur, questioned who was advising Justin Bieber’s NFT purchases.
Many others felt similarly about this purchase, seeing it more as evidence of the arrival of “dumb money” into the cryptocurrency space where celebrities just jump onto the bandwagon and do not take valuation metrics into account.
A Market-Wide Freeze
The substantial loss that Bieber has incurred is due to the initial overzealousness with which he purchased an NFT, but he is just one of many investors to have been adversely affected by this continuing cold effect for NFTs, also called the NFT “winter.” In addition, the digital collectible market as a whole has been experiencing a major downturn since its peak in 2021 and early 2022.
Rival collections have not been spared. CryptoPunks, arguably the most historically significant NFT project, once saw individual pieces trading regularly above $400,000. Today, entry-level Punks trade closer to $60,000. Pudgy Penguins, which were once trading for more than $100,000, are now trading for roughly $8,850. Investors are pulling money out of speculative assets as a result of the decline in value of Pudgy Penguins. The decline in value correlates with declines in liquidity in the speculative areas of the crypto market as a result of high interest rates and the transition to risk-off investments. A once growing asset class, like fine art, is now being re-evaluated by a market place that requires some form of utility rather than hype.
Yuga Labs Pivots to Reality
Yuga Labs, a $4B company that is the foundation of the Bored Ape Yacht Club, is certainly not inactive following a decline in their valuation. They acknowledged the end of speculative flipping; therefore they have turned their focus towards creating real utility for their community.
In 2025, Yuga Labs also took another significant step when they acquired the Unreal Creator Platform from Improbable, a tech company. This acquisition was designed to bring the development of “Otherside,” their ambitious metaverse gaming project, entirely in-house. The goal is to create a massive, interoperable digital world where NFT holders can use their avatars as playable characters.
Furthermore, the company is bridging the digital and physical divide. In October, Yuga announced plans to open a brick-and-mortar Bored Ape clubhouse in Miami, Florida. This physical venue aims to serve as a networking hub for holders, attempting to reinforce the “country club” membership aspect of the brand that drove its initial popularity.
The Outlook for 2026
Is a recovery on the horizon? Prediction markets remain skeptical. On Myriad, a decentralized forecasting platform, traders currently give the “Blue Chip” NFT trio—Apes, Punks, and Penguins—just a 16% chance of reclaiming their former floor price glory by July of this year.
For Justin Bieber, the $1.3 million loss is likely a drop in the bucket of his overall net worth. On the other hand, the lesson learned by the typical investor that came into the market through celebrity endorsements has been much more expensive. It looks as though the “moons” have landed and we are in a much more realistic world now, where digital assets will need to show they are worth something before all of the hype can exist.
