Blog Misc Bored Ape Yacht Club: “Supreme” in NFT Industry?

Bored Ape Yacht Club: “Supreme” in NFT Industry?

date May 9, 2022 time 6 min read 167 views

The NFT Bored Ape Yacht Club may be one of the world’s most influential NFT projects. The cost of BAYC NFTs had soared at the start of 2022, and the fees have also increased. Why is the Bored Ape Yacht Club so expensive? Find the answer in our article.

The price of BAYC NFTs has hit an all-time high as its native token continues to outpace other cryptocurrencies in the market. (Source: Pixabay)
The price of BAYC NFTs has hit an all-time high as its native token continues to outpace other cryptocurrencies in the market. (Source: Pixabay)

For nearly a year, NFT Bored Ape Yacht Club remained second to CryptoPunks in the race for the world’s most successful collection. However, the price of BAYC NFTs has soared since 2022. If you took all the NFTs in the collection and sold them, you could make billions of dollars. So what is NFT Bored Ape Yacht Club and why do its NFTs cost too much? Let’s read our article.

What is NFT Bored Ape Yacht Club?

The NFT Bored Ape Yacht Club (BAYC) is a collection of tens thousands unique NFTs based on the Ethereum blockchain. One of the best-known collections of NFTs is BAYC’s series of algorithmically generated cartoon ape profile pictures.

The parent company of NFT Bored Ape Yacht Club is Yuga Labs which aims to build a media empire entirely centered around NFTs. On April 23, 2021, the BAYC NFTs project began with a live pre-sale, which was one of the first steps toward realizing this goal.

Currently, the team behind the project is taking on Mark Zuckerberg’s Meta. By volume, the NFT Bored Ape Yacht Club is the most popular NFT collection, followed by the Mutant Apes and the CryptoPunks.

Two types of NFTs

There are generally two kinds of NFTs. The first kind is standalone pieces of art called “1/1.” They are a little like paintings in real life in that only one exists. Beeples “Everydays” is an example.

There are “editions” that can contain any number of NFTs that are more like collectible trading cards, such as the Bored Apes. With these editions, creators typically turn to generative art  to make large editions. 

While CryptoPunks is considered the genesis of the profile picture concept applied to collectible digital assets in the form of NFTs, NFT Bored Ape Yacht Club represents the refinement of this concept through a series of innovations. 

The Bored Ape Yacht Club NFTs are presented as a digital collectible following the canon made by CryptoPunks with a supply capped at 10,000 units. Each Ape represents a membership token to an exclusive digital hangout called the swamp club.

If the CryptoPunks implemented a much more restrictive IP regime allowing a level of exploitation by NFT holders to be capped and restricted to certain uses, NFT Bored Ape Yacht Club was launched under a much more generous licensing system for its intellectual property that the owners of NFTs can exploit commercially. 

Why are Bored Ape Yacht Club NFTs so expensive?

Bored Apes are a little like trading cards, and exclusive trading cards are very expensive. Of course, not everyone is willing to pay money for them. Many argue why NFT Bored Ape Yacht Club costs too much. Here are some reasons:

Utility

The NFT Bored Ape Yacht Club’s art is valuable not only because it serves as a digital identity but also due to the accompanying commercial usage rights. In addition to reselling the NFT for a profit, owners of Bored Ape Yacht Club NFTs can sell spinoff products based on the art.

An owner creates a Twitter account for his ape, spinning an entire backstory where the ape is Jenkins – a valet at the Yacht Club. Jenkins is personable, crypto-savvy, and tells amazing stories, which is considered the perfect combo for a successful Twitter account.

Jenkins was signed to a real-life agency in September 2021 to explore publishing potential in films, books, television, podcasts, and more. In addition, he will have his own biography, which will include contributions from New York Times bestselling author Neil Strauss.

Scarcity

When it comes to Bored Ape Yacht Club NFTs, some basic economics here: the supply of the NFT art is pretty limited since there are only 10,000 Bored Apes. With the massive interest in the brand,  a high-demand and low-supply dynamic will drive prices up.

Within the same collection, some Bored Ape avatars are rarer than others. Each Ape is a unique, randomly generated combination of 170 traits like background color, earrings, expression, etc, which also contributes to the high prices of some Bored Apes.

Exclusive content

NFT Bored Ape Yacht Club also offers exclusive content benefits to Bored Ape owners. Some are spelled out in the detailed roadmap on its website which is a sort of to-do list for the founders to check off when hitting their target sales percentages.

Celebrity Backing

One of the key reasons why Bored Ape Yacht Club NFTs are too expensive is due to Celebrity Bored Ape Owners like Eminem, Serena Williams, Stephen Curry, Shaquille O’Neal, and Justin Bieber. They own at least one of the Bored Ape Yacht Club’s non-fungible tokens, which is one of the causes of the increment in the interest and prices of Bored Ape Yacht Club NFTs.

Due to the significant celebrity involvement, Bored Apes have become a status symbol. The more expensive Bored Ape Yacht Club NFTs are, the more people want to have one. In other ways, an NFT Bored Ape Yacht Club gives you status, and people like that specific recognition, especially if you are in the upper-class circle.

With massive hype around NFTs, many celebrities have “aped” into the Bored Ape Yacht Club.
With massive hype around NFTs, many celebrities have “aped” into the Bored Ape Yacht Club. (Source: Pixabay)

The NFT Bored Ape Yacht Club is “a digital club with benefits and members-only access.” Owing Bored Ape Yacht Club NFTs gets you access to a whole NFT world and crypto-assets. Here are some benefits:

  • Exclusive Discord server
  • Access to the ApeCoin cryptocurrency
  • Use of THE BATHROOM – a collaborative graffiti board that is only accessible to MetaMask wallets holding Bored Apes.
  • Access to additional NFTs

Each NFT will have its own NFT pros and cons, and Bored Ape Yacht Club is no exception. Please consider carefully before starting to invest in it

The future of Bored Ape Yacht Club NFTs

Before the planned introduction of digital land for Yuga Labs’ upcoming Otherside metaverse game, Bored Ape Yacht Club NFTs have achieved a new record “floor” price. At the end of April 2022, the cheapest Bored Ape Yacht Club NFTs for sale are listed at a record 152 ETH, or nearly $429,000.

In addition, in order to develop its own gamified, decentralized Metaverse project dubbed Otherside,  the NFT Bored Ape Yacht Club has recently raised $450 million in funding. If their Metaverse project succeeds, the utility BAYC offers will blow up at scale.

Besides, the company has planned to expand into more merchandise, events, and more, which proves they are on the fast track to reaching their ambition of making a media empire centered around NFTs. Furthermore, we can truly hope they live up to the initial community-focused precedents that they set when both Meebits and CyrptoPunks are now owned by Yuga Labs. 

"BAYC is cool, and everyone wants the cool thing.", says Yehudah Petscher, a strategist at NFT data aggregator CryptoSlam.
“BAYC is cool, and everyone wants the cool thing.”, says Yehudah Petscher, a strategist at NFT data aggregator CryptoSlam. (Source: Pixabay)

The NFT Bored Ape Yacht Club is not the asset itself, it is a kind of certificate of ownership instead. Should you be new to NFT purchases, find out what you actually own when purchasing an NFT. If you want to find where to earn interest when owning cryptos, let’s consider MyConstant’s P2P lending.

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