Bored Ape Yacht Club
Bored Ape Yacht Club, popularly called BAYC, is a pool of 10,000 non-fungible tokens (NFTs) on the Ethereum blockchain. These NFTs are graphical representations of cartoon-like monkeys that are distinctive in their metadata, which includes the characters’ backgrounds, earrings, clothing, fur, and eyes. Metadata for NFTs is information about and descriptions of a token that the NFT creator provides.
Bored Ape Yacht Club, which launched in 2021, is similar to works of art that are physically sold; however, these chips only exist digitally and are unique because they live on the blockchain – which allows ownership.
Important takeaways
- Bored Ape Yacht Club, also known as BAYC, is a non-fungible token (NFT) collection of 10,000 cartoon-like monkeys.
- At the time of launch, each Bored Ape Yacht Club token cost 0.08 Ether (ETH), equivalent to $220, but by mid-October 2022, they were priced at a minimum of 76 ETH, worth approximately $100,418.
- BAYC was developed in April 2021 by Yuga Labs, and the founders use the pseudonyms Gordon Goner and Gargamel.
- Rarity, utility and celebrity endorsement drive the high price of the BAYC collection.
- BAYC is considered a status symbol, and celebrities such as National Basketball Association (NBA) star Stephen Curry, singers Eminem and Snoop Dogg, and late-night talk show host Jimmy Fallon own one.
The story of the Bored Ape Yacht Club
Bored Ape Yacht Club NFT launched in 2021 at the peak of the cryptocurrency bull market. BAYC has flourished among other notable NFTs, including CryptoKitties and CryptoPunks.
At the time of launch, one BAYC cost 0.08 Ether (ETH), the native cryptocurrency of the Ethereum platform, which was equivalent to $220 at the time. It sold out within 12 hours; by mid-October 2022, it had climbed to a “floor price” of 76 ETH, or about $100,418. A floor price refers to the minimum cost of an NFT in a collection. The dollar value of BAYC is subject to the price of Ether – if ETH rises, the value of the NFTs in this collection takes off. BAYC’s trading volume on October 14, 2022, according to NFT marketplace OpenSea, was 673,000 ETH.
In a historic moment in September 2021, Sotheby’s, one of the world’s largest auction houses, concluded its online auction of 101 Bored Ape Yacht Club NFTs for $24.4 million.
BAYC has garnered interest from celebrities who bought the NFTs at high prices. Some high-profile stars showing off their BAYC include “Tonight Show” host Jimmy Fallon, who purchased Bored Ape #599; NBA champions Steph Curry and Shaquille O’Neal; singers Snoop Dogg, Eminem and Justin Bieber; and world-class soccer player Neymar Jr.
Yuga Labs and the team behind Bored Ape
Yuga Labs developed Bored Ape Yacht Club. The team consists of four pseudonymous core members: Gordon Goner and Gargamel as co-founders, and No Sass and Emperor Tomato Ketchup, who handled the technical aspects of BAYC. They originally appeared under these pseudonyms in the early days of launch. But BuzzFeed’s disclosure of the co-founders’ identities in February 2022 led to two other core members to also give up his incognito status and post pictures of himself on Twitter.
On March 11, 2022, Yuga acquired Labs intellectual property of rival NFT aggregators CryptoPunks and Meebits, giving Yuga Labs ownership of the brand and logo of both of these NFT aggregators. CryptoPunks is one of the earliest NFT projects. It was among the most valued NFT collections on the NFT marketplace OpenSea, with a trading volume of 1 million ETH before it was delisted in February 2022 for copyright infringement.
The Yuga Labs team raised $450 million in a fundraising round led by venture capital firm Andreessen Horowitz, it was reported in March 2022, valuing it at $4 billion. The capital will be used to expand Yuga Labs’ activities and accelerate brand growth. Other NFT gatherings that Yuga Labs has started are the Mutant Ape Yacht Club (MAYC) – a spinoff of BAYC – and the Bored Ape Kennel Club. Both traded at volumes of 457,000 ETH and 110,000 ETH respectively on OpenSea in mid-October 2022.
Understand what makes Bored Ape Yacht Club valuable
Whether the Bored Ape collection is truly worth millions of dollars has been hotly debated. Some believe the high valuations are simply based on speculation. But in fact, rarity, celebrity endorsements, and tools and perks have driven the collection’s value up.
Rarity
The range of BAYC’s unique features and accessories are used to measure its value. The term “rarity” measures how unusual an NFT is in a collection with an assigned number. In the BAYC collection, there are more than 160 traits, and each monkey can have four to seven trait categories. These features are background, clothes, earrings, eyes, fur, hat and mouth.
The most expensive Bored Ape in the collection, BAYC #8817, was auctioned in October 2021 for $3.4 million on Sotheby’s Metaverse marketplace, an online platform dedicated to rare and extraordinary NFTs. BAYC #8817 had the solid gold coat trait – making it a relatively rare variety of NFT. Other features of the #8817 token are Silver Hoop Earrings and Wool Turtleneck.
Recommendation by celebrities
BAYC has lured several celebrities and brands to own parts of its NFT collection. Adidas is one of the brands contributing to the hype surrounding the NFT collection. Adidas launched ‘Into the Metaverse’, its original digital collectible, in partnership with Bored Ape Yacht Club, Gmoney and PUNKS Comic. Following the partnership, BAYC uploaded a photo of a Bored Ape wearing an Adidas jacket on Twitter; Gmoney also tweeted a silhouette picture wearing an Adidas jumper; PUNKS Comic tweeted a picture of a character wearing a shirt with the Adidas logo printed on it.
Other celebrities who bought BAYC beyond those mentioned include billionaire Mark Cuban, prominent Twitter personality and DJ Steve Aoki, Twitter personalities and musicians Post Malone and Mike Shinoda, and producer and songwriter Timbaland.
Tools and benefits
One of the distinguishing features of Bored Ape NFT, compared to other NFT collections, is its utility. Bored Apes owners have exclusive access to a private Discord group where they chat, network and build relationships with other Bored Apes members, including celebrities who own a Bored Apes. Monkey keepers also have access to “The Bathroom,” which allows them to draw a drawing every 15 minutes on a virtual bathroom wall that doubles as a community board.
The exclusivity that comes with the token’s benefits makes Bored Ape Yacht Club much more valuable in price than many other NFTs.
Some tools that have made BAYC attractive include ApeCoin, ApeCoin DAO, and upcoming metaverse games and events. ApeCoin is the official currency of the Bored Ape ecosystem and is used to purchase BAYC’s merchandise, event tickets and more. The ApeCoin DAO is a decentralized autonomous organization where its members – each ApeCoin holder – manage the DAO’s treasury and decide future projects by voting on proposals.
Overall, owning a Bored Ape is considered a status symbol among many individuals, another important reason why its price has risen steadily since its launch.
BAYC is more than an NFT gathering
In March 2022, BAYC launched ApeCoin and adopted it as the official currency of the BAYC ecosystem. ApeCoin was distributed to BAYC NFT holders shortly after launch. As mentioned, with ApeCoin, holders can participate in the governance process and engage the Bored Ape ecosystem. The ApeCoin DAO members will lead further development on the team’s roadmap, including developing blockchain games, hosting virtual events in the metaverse, and introducing physical products.
In December 2021, Bored Ape Yacht Club partnered with Animoca, a blockchain gaming company, to launch a game to earn money using BAYC NFT. Animoca has designed some popular games to make money, such as The Sandbox, and is valued at more than $5 billion.
An Adidas partnership has also been formed, as mentioned. The athletic suitor plans to cast a 3D Bored Ape character in his upcoming metaverse game. The aim is to promote 3D interaction between internet users through collectables.
Is it possible to lose a Bored Ape Yacht Club non-fungible token (NFT)?
Yes. Several boring monkeys have been stolen through fraud. In April 2022, the official Instagram account and Discord server of Bored Ape Yacht Club were hacked and a phishing link was posted on both BAYC platforms. Hackers stole about 30 Bored Ape tokens from owners who authorized a transfer using a fake “mint” link. Outside of potential hacks, however, losing a Bored Ape NFT is increasingly challenging.
How can I buy a Bored Ape token?
To buy a Bored Ape token and be part of the exclusive club, visit a platform where the BAYC collection is listed, such as OpenSea. Connect a compatible Ethereum wallet to the marketplace. Once that’s done, search for “Bored Ape Yacht Club”, filter out the ape you want, and place an order. If the order is confirmed, ownership of the monkey will be transferred to you.
Are Bored Apes losing value?
The value of Bored Apes, like most NFTs, is tied to the state of the crypto market. In a situation like the current bear market, where the prices of cryptoassets are falling steadily, the value of Bored Apes is expected to follow the same pattern. However, if crypto market sentiment is bullish, Bored Apes’ value is likely to rise above the current floor price.
The bottom line
BAYC has evolved into more than a profile picture (PFP) NFT. It has set a new standard and pace for other NFT collections through the many tools it has added and plans to add to the collection. Yuga Labs has introduced products built on the blockchain as well as physical products related to the Bored Ape collection.
