Bored Ape Yacht Club Review: Good For The Average Investor?

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Bored Ape Yacht Club, depending on who you ask, is either all that good or bad about non-fungible tokens. Each of the 10,000 NFT apes included in this collection serves as the token holder’s digital avatar and provides access to an exclusive online club.

Bored Ape NFTs are a success story that cannot be ignored. They were worth $190 each at the time and sold for 0.08 Ethereum (CRYPTO ETH) each when they first launched. They were selling for over 100 Ethereum (CRYPTO:ETH) a year later and rare apes were selling for millions.

What is the deal with this NFT collection exactly? This is a comprehensive look at Bored Ape Yacht Club and where it is going.

Background

Yuga Labs was started by Wylie Aronow and Greg Solano, two of their friends. Kerem and Zeshan were two software engineers who joined them to create the NFT collection. Guy Oseary, the manager, and the 4 co-founders now manage the company.

The company was valued at $4 billion when it raised $450 million from Andreessen Hoowitz. Other notable backers include FTX and MoonPay as well as Animoca Brands and many other.

What is the Bored Ape Yacht Club?

The BAYC NFT Collection features 10,000 Bored Ape NFTs. This doubles as a ticket to one of the most exclusive NFT communities. The team released 30 of the NFTs to the market for a flat 0.08ETH in April 2021. This collection was different from CryptoPunks in that it gave ownership rights and commercial usage rights. The community loved this.

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Bored Ape Yacht Club evolved from a 10k-pfp project to a dominant NFT ecosystem that includes creative NFT drops, cryptocurrency, and even their own metaverse. Their success led to many other NFT projects and a historic NFT bull market.

How Bored Ape Yacht Club works

Bored Ape Yacht Club is made up of 10,000 Bored Ape NFTs. Each ape is stored as an Ethereum token. It was built using the Ethereum blockchain. Each ape’s token ID is associated with its artwork. The Bored Ape Yacht Club website allows token holders to view the provenance records of their apes.

These NFTs act as your digital identity and allow you to access members-only areas within the Yacht Club. To gain access to these areas, token owners must sign into their Metamask NFT wallet. This is where they have stored their Bored Ape.

Why is the Bored Ape Yacht Club so expensive?

Rarity

The supply of NFT art is very limited because there are only 10,000 Bored Apes. Coupled with the massive interest in the brand, we have a high-demand/low-supply dynamic that inevitably drives prices up.

Bored Ape avatars from the same collection are more rare than others. Each Ape is unique and randomly generated with 170 traits. These include background color, earrings or expressions, clothing and headwear. Bored Apes are also expensive because of this derived scarcity.

Celebrity Association

Post Malone’s Jimmy Fallon, Paris Hilton and Stephen Curry all have their own Bored Apes. It’s well-known that celebrities can increase interest and prices.

Bored Apes are a status symbol due to their significant celeb involvement. They’re like digital Veblen goods, where the more expensive they become, the more people want one.

Bored Ape Yacht Club Exclusive Content

Bored Ape Yacht Club members receive exclusive content benefits from BAYC. The founders have created a roadmap as a kind of to-do list to ensure they reach their sales targets.

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The BAYC has been creative in their community-building strategies, keeping with their 10th goalpost: “New ways to ape our friends”.

Screenshot from the Bored Ape Yacht Club Roadmap.

In June 2021, Bored Ape holders were allowed to adopt a NFT canine companion for free. They only had to pay ‘gas’ which is the fee for processing transactions on Ethereum. This is how the Bored Ape Kennel Club was created. To raise $1 million for animal shelters, the club used secondary sales of canine companions.

These dogs were available for free to BAYC members, but the current floor price of a Bored Ape Kennel Club pet is 7.60ETH. That’s approximately $17,000 at current prices.

BAYC created 20,000 mutant Apes in August 2021. To bring in new members, they released 10,000 Apes to the public for just 3 ETH. The whole set was sold in an hour and generated $96 million.

Bored Ape owners received a free airdrop with 10,000 digital vials containing mutant serums. This allowed them to create new Bored Apes by using existing Bored Apes. They could also sell the NFT on the secondary markets for profit.

In March 2022, the BAYC created their own cryptocurrency, APE coin. They also airdropped $ape tokens to each BAYC and MAYC holder. Each BAYC NFT holder will be entitled to approximately 10,000 ApeCoins, or about $100,000.

BAYC is already seeing the benefits of APE coins. Wiz Khalifa and Snoop Dogg released an eight-track mixtape called NFT for $APE holders.

The club has also started hosting members at offline events, which will be a regular tradition. BAYC hosted its first ever Ape Fest in November 2021. It featured a gallery exhibit, a costume contest and a party aboard a yacht with a 1000-capacity crew off the coast of Manhattan. Surprise appearances by Lil Baby, Questlove and Beck, Chris Rock, Chris Rock, Chris Rock, Chris Rock, Aziz Ansari, and Questlove were all part of the grand finale “warehouse party” in Brooklyn.

Bored Ape Yacht Club Utility

Bored Ape Yacht Club NFT members have been blessed with many gifts, especially for those who have been around since the beginning. First, all 10k Bored Apes were given a Bored Ape Kennel Club canine companion (BAKC). The dogs sold for over 10 ETH once, which was a handsome reward to the adopters. The best part is that the royalties from the secondary market were donated by Wright-Way Rescue to help homeless pets.

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Each BAYC NFT Holder also received a vial Mutant Serum. A Bored Ape becomes a Mutant Ape when it is exposed to the serum. Existing holders get a completely new NFT and new members are welcomed at a lower price. The MAYC NFT Collection currently has a floor price at 19.49ETH and is among the top 3 NFT projects in terms of all-time sales volume.

Yuga Labs launched ApeCoin, their own cryptocurrency token in March. BAYC holders were entitled to free ApeCoin tokens as a reward for their loyalty to this project.

The holders of BAYC NFTs and MAYC NFTs received their Otherdeeds NFTs recently. This is part of the new Otherside metaverse. Each NFT land contains a unique set of resources that can later be used in the game. Lucky few may be able to find a Koda NFT in their land, which is basically a race of celestials from the Otherside metaverse.

In addition to these airdrops holders are invited to exclusive parties like the annual ApeFest or other in-person events. The most recent ApeFest 2022 took place at Pier 17 in New York, June 20-23 2022.

Conclusion

Bored Ape Yacht Club is not a smart investment. It’s also not a realistic option for most people. These NFTs are out of reach of the average investor due to their prohibitive price.

Even for those investors who have the money to buy a Bored Ape NFT it is not wise to invest in something just because it’s trendy or because famous people are buying it. Popularity is temporary, especially if a newer product emerges that grabs everyone’s interest. Take Dogecoin (CRYPTO :DOGE), for example.

Bored Apes are rare and expensive. You will need to find someone willing to pay more if you purchase one as an investment. This is a very risky strategy that relies on the greater fool theory.

The Bored Ape Yacht Club may have already reached its peak in popularity and value. It is a risky gamble to buy one hoping for a quick payday.

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