The Bored Ape Yacht Club (BAYC) is one of the most prestigious NFT collections in the world. It is a collection of 10,000 Bored Ape NFTs, which are one-of-a-kind digital collectibles that live on the Ethereum blockchain. They are kind of like Pokemon cards; they take a template and generate hundreds or thousands of variations, each of which is ranked in terms of rarity. Each of the 10,000 apes in the BAYC has unique properties such as fur types, facial expressions, clothing, accessories, and more.
The Bored Ape Yacht Club, like everything else related to NFTs, is contagious, and it seems to have hit the jackpot by piquing the interest of celebrities like Eminem, Jimmy Fallon, Steph Curry and Snoop Dogg.
The Bored Ape Yacht Club was launched in April 2021 by a team of four developers who go by the pseudonyms Gargamel, Gordon Goner, Emperor Tomato Ketchup, and No Sass. It took 12 hours for all 10,000 NFTs to sell out at a price of 0.08 Ether, or around $190. Today, the minimum cost of entry is 71 Ether, which is about $267,000.
Fun Fact: Someone accidentally sold their Bored Ape NFT for $3,066. (Well, not fun for this guy.)
What Makes Bored Ape Yacht Club Valuable?
Before we begin to understand what makes the BAYC valuable, it may help to understand how the value of any NFT is determined. But this is a tricky question because in the first place the definition of an NFT is still a bit hazy, as basically anything can be classified as an NFT. For instance, the world’s first tweet was sold as an NFT by Jack Dorsey, the creator of Twitter, for $2.9 million. And if an NFT can be anything and everything, then the question of what determines its value is complicated.
Like any other art form, the valuation of this digital art form is highly subjective. For example, while the Beeple NFTs were sold at Christie’s for a price as high as $69 million, the average price of an NFT is only $120. Despite this, there are some key areas that can determine the value of NFTs:
Some NFTs are valued beyond a simple resale. The majority of NFT projects claim to provide some sort of utility – whether it’s access to play-to-earn games or the ability to stake an NFT in exchange for a cryptocurrency. The utility of an NFT plays a significant part in its value.
The value of an NFT is determined by the identity of the original issuer or previous owners, which is obvious. When celebrities own an NFT, it inspires others to want one; at the same time, the resale value of that particular NFT also increases in value. For example, the NFT previously owned by Eminem (if he decides to sell) will have more value compared to other NFTs of the same class.
There are innumerable NFTs that exist on the market. So in order for an NFT to stand out, it must be unique or rare. And some NFTS are more unique than others. How? Let’s bring back the first tweet example again: Jack Dorsey’s first tweet NFT will always be rare. It is the first tweet on the Twitter platform, so NFT or not, the tweet in itself is rare. Turning it into an NFT is a smart move because there will never be another first tweet.
Community is a very important factor in the entire cryptocurrency ecosystem. So one of the driving factors that determine the value of an NFT is the community that’s built around a collection. To keep their community engaged and invested, the Bored Ape Yacht Club have had meetups in New York and California, as well as in Hong Kong and the United Kingdom. A weekend of festivities for owners was recently held in New York, and it included an actual yacht party and a concert.
Celebrities Who Own Bored Ape NFTs
The Bored Ape Yacht Club is one of the most popular NFT collections. They have contributed a lot to NFTs becoming mainstream in 2021. Perhaps, one of the reasons the BAYC could contribute to the NFT market to the extent it did was the legion of celebrities that “aped” into the club. Big names in sports, entertainment, and beyond have invested in the exclusive world of Bored Ape NFTs. Some popular celebrities who have “aped” into the Bored Ape Yacht Club are:
Jimmy Fallon, The Tonight Show host, announced his entry into the Bored Ape Yacht Club in November 2021. His purchase garnered a lot of press attention and piqued the interest of consumers in the NFT space.
Post Malone, singer and songwriter, paid over $700,000 for two Bored Ape Yacht Club NFTs. His purchase even featured in his song “One Right Now” featuring The Weeknd. Post Malone is currently using his Bored Ape purchase as his profile picture on Twitter.
Rapper Snoop Dogg can be called an NFT collector. He owns a complete set of BAYC, MAYC (M1 and M2), and a Bored Ape Kennel Club. He also owns CryptoPunks, Artblocks, XCOPY, and a slew of other high-value NFTs.
Golden State Warriors’s Steph Curry purchased the BAYC #7990 for 55 Ether, which is about $180,000. Curry, like many other NFT holders, has his Bored Ape as his Twitter profile picture.
Eminem, aka Marshall Mathers, bought BAYC #9055 from Twitter user @Gee_Gazza, who had once expressed publicly that Eminem would own it one day. The latter’s dream came true at the start of 2022 when Eminem bought the aforementioned NFT from him for 123.45 Ether, which was worth over $400,000 at the time.
Why Celebrities Are After Bored Ape Yacht Club NFTs
We know that NFTs became mainstream in 2021, but what was the catalyst for such rapid expansion? Was it the massive hype surrounding NFTs that enticed celebrities to purchase them, or was it the high-profile membership in the Bored Ape Yacht Club that fueled the hype?
We don’t know for sure, but we do know that BAYC was a key player in the 2021 NFT evolution.
We have just discussed the BAYC NFT purchases of five celebrities. Brazilian footballer Neymar is the lastest to be “aped” into the BAYC NFT. In fact, every other day a new celebrity joins the BAYC club, which indicates that celebrity adoption of these NFTs is only increasing.
What’s the selling point of the BAYC NFTs?
People pay millions of dollars for Bored Apes for a variety of reasons. The value of the BAYC collection comes from NFTs, which are digital ownership proofs stored on a public blockchain. At the same time, the majority of NFT projects use the Ethereum blockchain, which is priced in the native token Ether (ETH).
BAYC NFT owners gain admission to an exclusive membership club, which insists on the use of tokens for currency, in addition to owning a unique avatar. This gives them access to an inner circle of elites, further elevating their status and providing them with more lucrative opportunities. Owners of Bored Ape collectibles can also access private Discord messaging boards and gain privileged access to other NFTs.
Then there’s the resale value of these NFTs, as evidenced by the rising “floor price”, which refers to the lowest bid that can be placed on the collectibles.
So these are reasons people, and particularly celebrities, choose to be “aped” on to the Bored Ape club. Besides, celebrities love to splurge. After all, some celebrities have been known to spend their money on far more frivolous items, such as Donald Trump’s gold-plated private jet.
The History and Future of Bored Ape NFTs
In 2021, the global NFT market had a trading volume of over $23 billion. According to crypto data analysis platform DappRadar, this is a 230X increase from the $100 million figure of 2020. Meanwhile, the Bored Ape Yacht Club has generated more than $1 billion in total sales, which is not surprising considering the fact that the minimum price of a BAYC NFT starts at 52 Ether, approximately $210,000.
Given this trend, can we anticipate what’s next?
The Bored Ape Yacht Club is moving outside the NFT box and venturing into other areas like gaming and fashion. They recently announced that they are collaborating with developer Animoca on a play-to-earn game. They are also part of Adidas’s first NFT project, which was launched in collaboration with several NFT brands. In addition, Adidas also purchased a Bored Ape Yacht Club NFT, which is now on display on the company’s Twitter page.
With NFTs just getting started, the Bored Ape Yacht Club seems to have a very promising future despite some downers. It’s too early to say how they’ll fare in the future but don’t expect the Bored Apes to disappear any time soon.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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