Snoop Dog, Gwyneth Paltrow, Eminem, and even Justin Bieber. Many famous personalities and celebrities have bought the Bored Ape NFT. Even well-known brands such as Adidas acquired their own Ape.
Known for their cartoonish apes with unique expressions and accessories, the Bored Ape NFTs are one of the sought-after non-fungible tokens nowadays. They are also one of the most expensive. One ape was sold for a staggering 3.4 million USD.
In this article, we discuss everything about Bored Ape NFT. From what they look like and who created them, to why they are so pricey.
What is Bored Ape NFT?
Bored Ape NFT, also known as Bored Ape Yacht Club or BAYC, is an Ethereum-based Non-Fungible Token (NFT) launched by Yuga Labs in 2021.
There are 10,000 Bored Ape NFTs in the series, which are all digital illustrations of apes. Each ape has a unique background, hair color, facial features, outfits, accessories, and expressions. All ape attributes in the collection are algorithmically generated.
Bored Ape NFT holders become members of an exclusive club. Every member will receive various perks such as exclusive merchandise, membership to dedicated online spaces, access to an emerging portfolio of NFT collections, and an invitation to the annual gathering called “ApeFest”.
The first BAYC was minted on April 30, 2021. It was priced at 0.08 ETH (about $190). When a prominent NFT collector named Pransky acquired some of the apes and promoted them, all 10,000 apes were eventually sold in 12 hours. Since 2022, Bored Ape NFT has become the second leading NFT on the planet, next to CryptoPunks.
Currently, many prominent personalities hold Bored Ape NFTs such as Stephen Curry, Snoop Dogg, Eminem, and Jimmy Fallon.
Who Made Bored Ape NFT?
Yuga Labs, which consists of four core members, developed the Bored Ape NFT. These developers are under the following pseudonyms: Gargemel, No Sass, Emperor Tomato Ketchup, and Gordon Goner. The real identities of the developers were eventually revealed around 2022.
BAYC’s main character is said to be inspired by the designs of Seneca, an Asian American artist.
Why Is Bored Ape NFT So Expensive?
In October 2021, one of the BAYC NFTs, Bored Ape #8817, was auctioned for $3.4 million USD. Meanwhile, Bored Ape NFT reached its all-time floor price at around 128 ETH or $360,000. Recently, its floor price settled at around 13.58 ETH ($24,700), and it has a market cap of 135.77K ETH or $246.94 Million.
It is apparent that Bored Ape NFT is high-priced. While many suspect that its price tends to be overvalued or too speculative, there are obvious factors that drive its sky-high price, such as:
1. Uniqueness and Rarity
NFTs operate in the realm of basic economics. Those with low supply but high demand are priced higher.
Since the number of apes in the collection is fixed to 10,000, there is always a scarcity in its market. Unless there are changes in the developer’s policies, no fresh ape will be available in the future. This fact and coupled with its massive popularity in mainstream culture, drives up Bored Ape NFTs’ price.
Meanwhile, some apes in the collection are rarer than the others, which makes them more expensive. Consider BAYC #8817, which was auctioned for $3.4 million on Sotheby’s Metaverse marketplace. It features an exclusive Gold Fur trait that makes it substantially costlier than the other apes.
2. Access To Exclusive Benefits
The perks of becoming a Bored Ape NFT holder also contribute to its high price tag. A holder becomes sort of a “VIP” that joins an exclusive network of high-end personalities, celebrities, athletes, and wealthy individuals.
For instance, holders gain access to an exclusive Discord server as well as to a graffiti board called “The Bathroom,” where members can draw whatever they want every 15 minutes. And apparently, members will get a chance to chat or even meet popular icons like Justin Bieber or Eminem.
Every holder also takes part in the Decentralized Autonomous Organization (DAO) of ApeCoin, the official cryptocurrency of the Bored Ape NFT ecosystem. This means that the holders can vote for the future trajectory of DAO’s treasury and its future endeavors.
3. Influence of Well-Known Personalities
Compared to most NFTs, Bored Ape NFT was able to attract many celebrities and famous individuals. This generated a massive hype that drove the NFT’s demand and increased its price over time. Many consider this as the most significant factor in Bored Ape NFTs’ staggering cost.
Aside from the personalities already mentioned, some well-known individuals who hold Bored Ape NFTs include musicians Madonna and Post Malone, actor Kevin Hart, and former basketball player Shaquille O’Neal.
4. Continuous Ecosystem Expansion
The BAYC universe innovates to keep its relevance to the population and engage its current holders. NFT innovations are often in the form of expansive metaverse crypto projects.
One of its first innovations is the release of ApeCoin in March 2022. Until today, the ApeCoin DAO actively votes for the funding of future projects in the Bored Ape NFT ecosystem.
Another major innovation is the launch of Mutant Ape Yacht Club (MAYC), an extension of the BAYC collection. It comprises 20,000 mutant ape digital illustrations sold either via auctions or created through a special procedure where existing BAYC NFTs are “exposed” to a vial of “Mutant Serum”. MAYC NFTs generated via exposure to the “serum” share identical traits to the original BAYC NFT but with mutated features.
MAYC is a revolutionary step not only in the BAYC ecosystem but also in the entire NFT world. It is one of the first collections that reward NFT holders with free and new sets of NFTs.
Final Thoughts: Should You Acquire Bored Ape NFTs?
With its astounding perks, fascinating designs, and unmatched mainstream relevance, Bored Ape NFTs are one of the must-have NFTs for investors seeking an NFT whose value is backed by popularity and reputation. It is also a promising asset given the community’s grit to innovate and aspiration to become one of the leading entities in Web3 technology.
However, it is also important to always keep track of the latest trends in the NFT market to ensure that your purchase of Bored Ape NFTs will generate your desired ROI.
