"In January 2022, when the world was still in the throes of the COVID-19 pandemic and coping with rolling lockdowns, non-fungible tokens were all the rage. The blockchain-based assets, which more often than not took the form of cartoon pictures of silly-looking avatars like "CryptoPunks" to "Pudgy Penguins," were selling like hot cakes. Even big shot celebrities were lining up to secure NFTs belonging to once-popular collections, like Yuga Labs' Bored Ape Yacht Club."
"In the midst of the craze, pop sensation Justin Bieber shelled out a hefty $1.3 million for a Bored Ape, an enormous sum of money for the rights to an image of a particularly glum-looking ape that appears to be on the verge of tears for some unknown reason. Unsurprisingly, the questionable splurge turned out to be a hilariously bad investment."
"The controversial crypto market has been going through an " NFT winter" following a brutal and extended crash. Collectors have gotten a hefty reality check. Who could've seen that coming? Yuga Labs, the creator of the Bored Ape Yacht Club collection, has been holding on to dear life. The company has gone through several rounds of layoffs since the trend's heyday, with Yuga Labs cofounder Greg Solano admitting in April 2024 that the company had " lost its way.""
In January 2022 NFTs surged in popularity amid the COVID-19 pandemic and lockdowns. Blockchain-based collections of cartoon avatar images sold rapidly, attracting celebrities and heavy purchases, including Justin Bieber's $1.3 million Bored Ape. The ape's value later collapsed to about $12,000, a loss of over 99%. The broader crypto market entered an "NFT winter" marked by a brutal crash and collector losses. Yuga Labs faced several rounds of layoffs and cofounder Greg Solano said the company had "lost its way." Events included a Hong Kong incident caused by excessive UV lighting and legal and regulatory scrutiny from a class action suit and an SEC investigation.
Read at Futurism
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