Plenty of celebrities have been joining in on the NFT hype to make money from minting their digital art. Many of their fans are joining in, if only to support their favorite star. But here’s why celebrity NFTs may not be worth all the hype.

Seeing the first few celebrities who cashed in on NFTs make millions of dollars, a number of others joined in to make their own blockchain-tied art. While the hype around these remained high, things aren’t looking too good for buyers.

Celebrity NFT owner Justin beeber

Resale Value celebrity NFT

The prices of these pieces have shot down tremendously since they were first released. The most likely reason for this is that the NFT itself was less about the art and more about showing loyalty to the celebs in question, as celebrity culture dictates. The resale market for a lot of celebrity NFTs is small, outside of the fans, and long-time investors in the NFT market have been shunning celeb NFTs as a simple money grab and staying away from making any investments.

Downward Trend

Celebrities were the reason that NFTs became popular to begin with, with their tweets and merchandise promoting these tokens to their thousands and millions of fans, who are already buying their merchandise anyway. This is why NFTs nowadays managed to expand outside of the tech-junkie circle and became so mainstream.

That said, most celeb-backed NFTs around now show a downward trend. Most collections made by celebs are highly illiquid, which can result in either losing value, or getting frozen. Either way, the collection dies. 

Experimentation

Some NFT collectors even believe that celebrity NFTs were more experiments than actual valuable collections that were meant to go a long way. As mentioned earlier, these were considered money grabs. 

In fact, looking deeper, while these collections and deals look different on the surface, the arrangement is mostly similar. The platform the art is being sold on takes a percentage of the total amount it brings in, while the celebrity themselves take the remaining, splitting it down based on agreements with brokers, designers and other involved parties. Some celebrities also get cuts on secondary sales.

The consistent pattern followed by most celebrity NFTs suggests that it is indeed less about the art and more about the money. As such, most NFT collectors and investors don’t want to have anything to do with them. 

For a serious investor who is looking into long term wealth generation and value, celebrity NFTs are not at all worth the effort, and most of the hype around them comes from the celebrity’s existing popularity outside of their NFT ventures.

Some celeb-backed NFTs are done well, for example, Paris Hilton, or Beeple, but for most others, it becomes something of an attempt to stay on trend with what’s happening on the internet, rather than an actual interest in art – which is what NFTs is all about to begin with.

Conclusion 

At the end of it, celebrity NFTs will likely still get hyped by virtue of being a celebrity NFT, but its actual value in the market remains debatable.