Bored Ape owners sent broke after NFT price collapse
The cartoon apes that became a status symbol during the NFT boom of 2021 have become a financial albatross for some of their once proud owners, who have plunged into debt.
The colourful owners of Bored Ape NFTs have had a rough couple of weeks. They’ve discovered that borrowing against a very illiquid asset – in this case, an uncomfortably ugly monkey picture – comes unstuck very, very fast when that asset plummets in value.
Last week, a “yacht club’s” worth of Bored Ape owners were effectively margin called, when the loans they’d taken out against their monkey pictures were called in because the value of their monkey pictures had fallen to record lows. It also didn’t help that they’d used those loans to buy more monkey pictures.
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Jessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics. Connect with Jessica on Twitter. Email Jessica at jessica.sier@afr.com
