- Bored Ape Yacht Clubs are often talked about in the non-fungible token (NFT) industry, but why? Where does its popularity come from? In this guide we seek to resolve these doubts so that you understand what they are and why they are so valuable.
The Bored Ape Yacht Club (BAYC) is an NFT collection of 10,000 unique ape avatars living on the Ethereum blockchainHowever, unlike other NFTs, BAYCs arguably have a utility beyond being collectible images.
To begin with, let us remember that an NFT is a unique and inimitable asset in the digital world and can be understood as certificates of ownership of virtual or physical assets.
This is precisely what each of the 10,000 pieces of apes that make up the BAYC collection consist of. Each ape was programmatically generated from over 170 possible traits, which range from expression to clothing. However, from the set of traits that an ape incorporates, some may be rarer than others; andThis obviously adds additional value to the NFT.
Club Membership
On April 20, 2021, this collection was launched and each ape cost 0.08 ETH, which translates to approximately $300 dollars.
But, in addition to acquiring a work of art that is demonstrably rare, users who purchase a Bored Ape gain access to a club membership. In theory, according to their website, the benefits of this membership will increase over time.
For example, in mid-December 2021, a big party was held in New York where only those who own a Bored Ape attended, and just like that party, Bored Ape owners have gathered in different cities and held various events.
So, In addition to being an investment in a collectible, the Bored Ape gives its users status. However, it actually goes further, since belonging to an inner circle can also be profitable. How? Well NFTs also allow their holders to access private Discord forums and privileged access to other NFT projects.
For example, the team creatively launched a second series of apes. Instead of offering a new collection, they released 10,000 serums called Mutant Ape and each member received one. The serum consists of three levels: M1, M2, and Mega Mutant. When injected into a normal Bored Ape, the serum generates a Mutant Ape Yacht Club NFT.
Therefore, A Bored Ape gives its holders access to additional NFT collectibles that can later be resold for a profit.
According to a report from CointelegraphResearch, Bored Ape Yacht Club had the highest return in 2021 compared to other NFT projects and until now Bored Ape Yacht Club NFT sales total over US$1 billionaccording CryptoSlam.
Solid marketing strategy
An important factor behind the value of NFTs lies in the demand for the asset. If there is no market willing to buy the asset, the price would crash. In that scenario it wouldn’t matter if one is rarer than another, the value would disappear.
So the question is: How do these projects get demand? Well, with a solid marketing strategy that recognizes what they sell and projects it to their target consumer.
As previously noted, The Bored Ape offers a series of benefits that go beyond collecting a work of art that can be revalued in the future. The value lies in the status and opportunities they offer you. With this in mind, BAYC has undertaken a number of actions to increase the value of the product they offer, for example gaining the attention and adoption of major celebrities.
Shortly after the presale, notable names like NBA star Stephen Curry began changing their Twitter profile pictures to Bored Apes. Likewise, Eminem himself recently acquired his own Ape valued at 123.45 ETH, or $452 thousand US dollars at the time of purchase.
Keep adding usability
Nevertheless, BAYC does not only focus on individuals, it has also made strategic partnerships with other brands such as Adidas and more recently with Animoca Brands.. The partnership with Adidas hints at potential BAYC interoperability, while its partnership with Animoca Brands heralded the development of a money-making game.
In fact, according to advertisementthe Bored Ape Yacht Club game is scheduled to launch in the second quarter of 2022.
In addition, it is expected that in the first quarter of 2022, BAYC will launch its own token, according to an announcement that was made in October 2021.
security considerations
In general, when walking through the crypto industry, it is essential to do it carefully and very attentive to threats. NFT collections are not without risk.
In late 2021, Todd Kramer wrote on Twitter that he had clicked on a link that appeared to be a genuine NFT decentralized app but turned out to be a phishing attack and had 16 of his NFTs stolen. Users shouldn’t wait to be in Kramer’s position to learn their lesson.NFT collections face the same risks as any other cryptocurrency.
When entering the crypto world, various risks are taken and many of them can be avoided through actions. For example, it is suggested that collections of NFTs be stored in cold wallets, which provide a higher level of security than those that are connected to the Internet.
* In the next detailed guide you will be able to tell the difference between a cold wallet and a hot one. In addition, here you will be able to read about some common scams in the crypto industry and how to avoid them.
What is the future of the project?
Nowadays, BAYC is one of the most important NFT projects on the market together with CryptoPunks, and has only been around since early 2021.
In terms of the BAYC roadmap, it has a pending goal known as the Mystery Note. This is that once it is readable, ape owners will have to solve a puzzle, the first to do so will win 5 ETH and a Bored Ape.
In this way, as can be seen, Yuga Labs, creator of BAYC, has the ambitious goal of creating an entire ecosystem derived from the Bored Ape. It will be interesting to see the evolution of the project throughout 2022.
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