Non-fungible tokens (NFTs) are all the rage right now among celebrities and the wealthy. Gwyneth Paltrow is the new celebrity to join the BAYC with her latest NFT purchase.
Gwyneth Paltrow Joins BAYC
You’d think celebrities would stay away from the crypto debate for a while after Paris Hilton and Jimmy Fallon’s attempt to promote NFTs on Monday night’s broadcast of The Tonight Show. Gwyneth Paltrow is jumping right in on the NFT boat. On Thursday, the Goop founder and former MCU actress joined in on the Bored Ape club by showing the NFTs on her Twitter account.
— Gwyneth Paltrow (@GwynethPaltrow) January 26, 2022
Since the announcement, it seems that many aren’t a fan of Paltrow’s new acquisition. Many have attacked her, saying her new Bored ape soils her good name.
It's really incredible that Gwyneth Paltrow would soil her good name by getting involved in an ugly scam designed to fleece total imbeciles. Who could have predicted it pic.twitter.com/Dz8fqeKD7n
— MKupperman (@MKupperman) January 27, 2022
Another user tweeted:
“Cannot express how on brand it is for Gwyneth Paltrow to be into pyramid schemes.”
Related article | Why The IRS Sees “Mountains Of Fraud” In Crypto And NFTs
Why Are Celebrities Buying NFTs?
Because they can afford them.Celebrities are drawn to scarcity, speculation, and hype. The buyer’s (or artist’s) profile might act as a feedback loop, making the NFT more desirable. The price increases that ensue can be significant. Rinse, rinse, rinse, rinse, rinse, rinse, rinse, rinse, rinse
NFTs that are thought to be valuable have become a status symbol, much like any other touted product. According to The Verge, a Beeple NFT sold for $69 million at Christie’s, putting the artist “among the top three most valuable living artists.” Mike Winkelmann, a.k.a. Beeple, has a few reasons to be popular. But his sale of his compilation of 5,000 days artworks seems to offer the buyer of his work a right to flex.
BTC/USD trades at $36k. Source: TradingView
Some NFT collectors believe that, like precious tangible pieces of art, these objects will appreciate in value. So far, they’ve proven correct for a handful of NFTs. This dynamic cube was originally advertised for $500 but sold for $17,000 recently.
In an episode of Folding Ideas, Dan Olson noted that in order to make money, you need someone to be the “bigger fool” in the chain of customers, someone prepared to spend increasingly large sums. Some have made persuasive arguments that NFTs are nothing more than a pyramid scheme for the elite. If you’re shopping as a “collector,” the item’s value as a status symbol or a “flex” is influenced by the price tag.
Featured image from Getty Images, chart from TradingView.com