The Bored Ape Yacht Club, more commonly known as BAYC, is a compilation of 10,000 non-fungible tokens (NFTs) on the Ethereum blockchain. These NFTs are graphic depictions of cartoon apes that vary in their metadata, which could include their backgrounds, accessories, apparel, fur, and eyes. Metadata for NFTs is extra information and descriptions of a token that its creator supplies.
In 2021, the Bored Ape Yacht Club was established, similar to physical artwork that is sold. Nonetheless, the pieces are exclusively digital and unique since they are preserved on the blockchain, granting their ownership.
BAYC: Background
This yacht club has been around for a long time, having first been established many years ago. It has a rich history, and over the years it has grown and developed into what it is today.
The Bored Ape Yacht Club NFT (BAYC) was released during the 2021 cryptocurrency bull market surge. It has become highly successful among other recognized NFTs, such as CryptoKitties and CryptoPunks.
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At launch, BAYC had a cost of 0.08 Ether (ETH), the native cryptocurrency of Ethereum, which was at the time equivalent to $220. This offering sold out in a mere 12 hours; by the middle of October 2022, it had reached a “floor price” of 76 ETH, equating to around $100,418.31.
A floor price is the lowest price an NFT can have within a collection. The dollar value of BAYC is associated with the cost of Ether – if ETH increases, the value of the NFTs in this collection will too. As reported by OpenSea, BAYC’s trading volume on October 14th, 2022, was 673,000 ETH.
On a remarkable day in September 2021, Sotheby’s, a leader in the global auctioning industry, concluded an online sale of 101 Bored Ape Yacht Club NFTs, with a total worth of $24.4 million.
Bored Ape Yacht Club has been of particular note to many celebrities, who have bought the NFTs at higher prices. Notable stars such as Jimmy Fallon, host of the Tonight Show, who purchased #599; NBA champions Stephen Curry and Shaquille O’Neal, musicians Snoop Dogg, Eminem, Justin Bieber, and soccer player Neymar Jr. have all displayed their interest in the BAYC.
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Bored Ape, an initiative of Yuga Labs, and the People Behind It
Yuga Labs created the Bored Ape Yacht Club, with Gordon Goner and Gargamel as co-founders, and No Sass and Emperor Tomato Ketchup handling the technical side of BAYC. The use of pseudonyms by the four core members was kept secret until February 2022, when BuzzFeed published an article revealing their true identities. This prompted the other two core members to post pictures of themselves on Twitter, thus abandoning their anonymous status.
In March 2022, Yuga Labs procured the intellectual property for their competitors CryptoPunks and Meebits, which allowed them to own both the brand and logo of the NFT collections. CryptoPunks was among the first NFT projects and had a considerable trading volume of 1 million ETH on OpenSea, prior to it being taken down in February 2022 because of a copyright infringement.
In March 2022, news broke that the Yuga Labs team had secured $450 million in a venture capital-led fundraising round, valuing the firm at $4 billion. The funds are to be used to fuel Yuga Labs’ operations and bolster their brand. Subsequently, in October 2022, two NFT collections that originated from Yuga Labs, the Mutant Ape Yacht Club (MAYC) and Bored Ape Kennel Club, were trading on OpenSea at volumes of 457,000 ETH and 110,000 ETH, respectively.
Why is Bored Ape Yacht Club (BAYC) valuable?
The worth of the Bored Ape collection has been a matter of contention, with some people asserting that the high cost is just based on conjecture. Nevertheless, it is rarity, endorsements from celebrities, and additional privileges and benefits that have boosted its worth.
Unusualness
Rarity is often understood to mean something that is uncommon, and that is true in many cases; however, the term can also refer to the quality of being special or unique. Unusualness is a term that accurately describes this concept.
The worth of BAYC is determined by its unique characteristics and add-ons. The concept of “rarity” is used to identify how uncommon an NFT is when compared to others in the collection and is assigned a numerical value. BAYC boasts more than 160 features, with any one ape featuring between four and seven categories such as background, clothing, earrings, eyes, fur, hats and mouths.
In October 2021, Sotheby’s Metaverse, an online platform for rare and extraordinary NFTs, saw the most costly Bored Ape, BAYC #8817, offered for $3.4 million. This #8817 token was distinguished by its Solid Gold Fur trait, Silver Hoop Earrings and Wool Turtleneck, making it a relatively scarce edition of the NFT.
Prominent Figures Promoting Products
Celebrities often lend their name, image, and reputation to back up and endorse products, using their clout to attract attention and validation to the product. This is known as celebrity endorsement.
BAYC has attracted a number of well-known names and corporations to own components of its NFT collection. Adidas is one of the entities that have joined in on the buzz surrounding the series. The sportswear giant launched its “Into the Metaverse” virtual collectible in collaboration with Bored Ape Yacht Club, Gmoney, and PUNKS Comic. Following the partnership, BAYC uploaded a photo of a Bored Ape wearing an Adidas jacket on Twitter; Gmoney tweeted a silhouette with an Adidas sweatshirt; and PUNKS Comic shared a picture of a character with the Adidas logo printed on their shirt.
In addition to the previously mentioned celebrities, billionaire Mark Cuban, Twitter titan Steve Aoki, singers Post Malone and Mike Shinoda, and producer/songwriter Timbaland have all acquired BAYC.
Having Utilities and Perks
The Bored Ape NFT has many utilities that set it apart from other collections. Possessors of Bored Apes are given special entry to a private Discord group, where they can converse, network, and bond with other Bored Ape owners, including popular figures who own one. Furthermore, holders of Apes are also granted access to “The Bathroom,” allowing them to draw on a virtual board every 15 minutes, which acts as a public gathering space.
The one-of-a-kind advantages that come with being a member of Bored Ape Yacht Club greatly increase its value in comparison to other NFTs.
The Bored Ape ecosystem has been enhanced by certain utilities, such as ApeCoin, ApeCoin DAO, and upcoming metaverse games and events. ApeCoin is accepted as payment for BAYC merchandise, tickets, and more. ApeCoin DAO is a decentralized autonomous organization, where every ApeCoin holder can vote on proposals to govern the DAO’s treasury and decide on future projects.
It has become a symbol of wealth to possess a Bored Ape for many people, which has caused its market value to steadily increase since its introduction.
BAYC Offers More Than Just an NFT Collection
In 2022, BAYC released ApeCoin and made it the principal currency for their ecosystem. The coin was distributed to BAYC NFT holders soon after its launching. This allowed them to take part in the governance process and be involved in the Bored Ape environment. The ApeCoin DAO members will be in charge of the team’s roadmap, which includes creating blockchain games, organizing virtual events in the metaverse, and introducing physical products.
In December 2021, the Bored Ape Yacht Club teamed up with Animoca, a blockchain gaming organization valued at more than $5 billion, to create a play-to-earn game that uses the BAYC NFT. Animoca is well-known for developing some of the most popular play-to-earn games, such as The Sandbox.
Adidas has entered into a collaboration as well. The sportswear manufacturer plans to feature a 3D Bored Ape character in its upcoming virtual reality title. The idea is to encourage 3D communication among online users through collectibles.
Is the entertainment value of Bored Apes diminishing?
The worth of Bored Apes, like many other NFTs, is contingent on the status of the crypto market. At present, when the bear market is in full-swing and values of crypto assets are dropping, the value of Bored Apes is anticipated to follow suit. However, when the market sentiment is bullish, then it’s likely that the worth of Bored Apes may exceed the present floor price.
Conclusion
The Bored Ape collection, developed by Yuga Labs, has advanced beyond the usual profile-picture NFTs and is setting a new precedent for all NFTs through the utilities it has incorporated, and will continue to incorporate, into its collection. Additionally, this collection has also created blockchain-based and physical products for users.
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