Web 3.0 and NFTs continue to mystify the vast majority of people, despite the various explanations that have inundated the internet since they were first introduced.
It is not helpful that the industry is filled with absurd purchases, such as the approximately $460,000 Eminem spent on a cartoon ape. This is just one example. An NFT collection known as the Bored Ape Yacht Club contains over 10,000 apes like this one.
Naturally, you must have quite a few questions at this point. The Bored Ape Yacht Club. What in the world is that? Why does a cartoon cost so much money? Is this another instance of innovation being passed off as a financial bubble? Now, we can respond. Let’s dig in.
What Is the Bored Ape Yacht Club?
The Ethereum blockchain is the foundation for collecting 10,000 distinct non-fungible tokens known as Bored Apes. The Bored Apes are a group of unkempt simian avatars, each possessing a unique set of traits, some of which are more uncommon than others.
For instance, five percent of Bored Apes have red fur, and only three percent wear motorcycle vests. The price of a Bored Ape will likely increase in proportion to the rarity of the features it possesses.
As with all NFTs, the Bored Ape is not the asset itself; rather, it is a type of ownership certificate or, in this instance, a passkey. This is the same situation that occurs with all NFTs. Find out what you own when buying an NFT if you still need to become familiar with buying these investments.
You probably guessed correctly that the Bored Apes Yacht Club is the name of the elite group that the Bored Apes are the foundation of. Your Bored Ape can also serve as your membership card to the Yacht Club, which gives you access to members-only benefits.
The first of these is THE BATHROOM, a communal drawing board on which owners of Bored Apes can create digital graffiti. In addition, purchasing Bored Ape grants gives you access to a secret Discord server, where you can socialize and carry on conversations with other owners.
At the time of introduction, the price of a single Bored Ape was 0.8 ether, equivalent to around $190. Apes were made available on a first-come, first-served basis.
However, because they were so popular and sold out quickly, they are now accessible on the secondary market OpenSea, which is comparable to eBay in terms of its focus on non-fungible tokens. As of the time this article was written, the starting price for an Ape on OpenSea is 108 ETH, equivalent to around $368,000.
Who exactly is the mastermind behind the Bored Ape Yacht Club?
In 2021, four individuals established Yuga Labs, which later became the parent firm of the Bored Ape Yacht Club. Gargamel, Gordon Goner, Emperor Tomato Ketchup, and No Sass are the cartoonish pseudonyms the company’s creators use.
At least, that’s what they thought until February 2022, when BuzzFeed broke the story and revealed who Gordon Goner and Gargamel were.
It was discovered that Gargamel is a writer and book reviewer named Greg Solano and that Gordon Goner is Wylie Aronow, who is 35 years old. Both then disclosed their genuine names on Twitter and their respective Bored Apes. After that, Emperor Tomato Ketchup and No Sass continued in the same direction and accomplished the same thing.
According to an interview published in Rolling Stone, the creators of BAYC got the inspiration for the company in recent NFT OGs such as CryptoPunks, which have become a form of cultural currency.
Just like Bored Apes, CryptoPunks is a collection of one-of-a-kind NFT avatars that number in the thousands, and just like Bored Apes, they are extremely expensive, with one going for an astounding 11.7 million dollars. Catch up on the latest news on CryptoPunks and why their prices are so high if you haven’t already.
In the case of BAYC, the goal was to merge the collectible-art aspect of NFTs with community participation. This would provide ownership of NFTs some utility beyond the scope of only serving as status symbols for members of the crypto cool kids subculture.
Why Are Bored Apes So Costly?
NFTs Are Hot and Expensive
NFTs are the most exciting and lucrative aspect of the crypto industry. Over the past two years, their prices have exploded higher in conjunction with their popularity and utility. They were started as jokes by the community members creating them, but today they are fully usable investments that are being actively bought and sold. Some of them are even traded for profit.
As of this article’s writing, CryptoPunks is a top-25 cryptocurrency, which means that its market value has ballooned into the hundreds of thousands or the millions. However, its market cap stands at a comparatively minuscule $6 million.
Utility: A NFT Can Be Used for Ownership and Exchange
At some point in the future, we will see NFTs become the standard form of ownership in the blockchain. When this happens, they will be used to represent ownership of physical assets, digital assets, and even shares of corporations. For example, imagine an investor buying a CryptoPunk Baseball card. If that investor were to sell it on OpenSea for around $1 million next year, it would be a massive profit.
Scarcity: The Rarest NFTs Will Increase in Value
The Bored Ape Yacht Club is designed to contain the most valuable tokens. If you’re a seller, you want them to be highly scarce and have a high price. As an owner, the value of your Bored Ape will increase in direct proportion to the value of the distributed rarest tokens.
Exclusive content: Bored Apes Give You Access to Yacht Club Benefits
As owners, we also have access to benefits that aren’t available to the general public. The Bathroom is a secret space where we can create unique, artistic drawings that won’t be visible to the rest of the world. This gives us something exclusive to which we can all contribute, and it’s something that we can always appreciate and look forward to as Bored Ape owners.
Even though they weren’t the first NFT collection, Bored Apes are one of the few collections that are now available. To put less stock in the originality of the idea, yet the uniqueness plays a role in the movement’s accomplishments. For example, CryptoPunks are highly desirable primarily since they were the first collection of NFTs.
The acquisition of Cryptopunks by BAYC at the beginning of March 2022 was a move that made a huge dent in the company’s competition and established the company’s position as a pioneer in the NFT community movement.
In the same way, they have done with Bored Ape owners, BAYC intends to offer intellectual property rights and marketing rights to CryptoPunks owners. This will invariably increase demand, which will cause prices to rise.
Conclusion: Bored Ape Yacht Club Is the New Most Valuable Crypto Collectible
The perfect combination of art, utility, and exclusivity makes Bored Apes so valuable. The fact that they are largely unavailable to the general public and extremely limited in quantity makes them incredibly valuable. For a token to be valuable in 2019/2022, it has to have a lot going for it: an aesthetic look, a utility use, and high values. The Bored Ape Yacht Club is the leading combination of all of these.