What Is Bored Ape Yacht Club?
Bored Ape Yacht Club, popularly called BAYC, launched in 2021, is a collection of 10,000 non-fungible tokens (NFTs) on the Ethereum blockchain. These NFTs are graphical representations of cartoon-like apes with specific traits. The characters have combinations of backgrounds, earrings, clothes, fur, eyes, expressions, and more that make them all unique.
Key Takeaways
- Bored Ape Yacht Club is a non-fungible token (NFT) collection of 10,000 cartoon-like apes.
- At launch, each Bored Ape Yacht Club token cost 0.08 Ether (ETH), or $220; by mid-October 2022, they cost 76 ETH, or approximately $100,418.
- BAYC was developed in April 2021 by Yuga Labs, whose founders use the pseudonyms Gordon Goner and Gargamel.
- Rarity and celebrity endorsem*nt drove the high price of the BAYC collection.
- Some consider BAYC a status symbol, and celebrities like NBA star Stephen Curry, singers Eminem and Snoop Dogg, and late-night show host Jimmy Fallon own one.
History of Bored Ape Yacht Club (BAYC)
The Bored Ape YachtClub NFT was launched in 2021 at the pinnacle of the cryptocurrency bull market. Yuga Labs developed the Bored Ape Yacht Club. The Yuga Labs team comprised four core members who appeared under these pseudonyms in the early days of the launch: Gordon Goner and Gargamel (co-founders), No Sass, and Emperor Tomato Ketchup, who handled the technical aspects of BAYC.
BuzzFeed, a news publication, broke a story in February 2022 revealing two of the co-founders’ identities. This led the other two core members to also give up their incognito status and post pictures of themselves on X (formerly Twitter).
On March 11, 2022, Yuga Labs acquired the intellectual property for rival NFT collections CryptoPunks and Meebits, giving it ownership of the brand and logo of each of those NFT collections. CryptoPunks is one of the earliest NFT projects and was among the most valued NFT collections on the NFT marketplace OpenSea. It had a total trading volume of 1 million ETH before it was delisted in February 2022 for a copyright violation.
In a historic moment in September 2021, Sotheby’s, one of the world’s largest auction houses, closed its online auction for 101 Bored Ape Yacht Club NFTs at a price of $24.4 million.
Early Fundraising and Interest
In a fundraising round led by venture capital firm Andreessen Horowitz, the Yuga Labs team raised $450 million. In March 2022, it was reported to be valued at $4 billion. Yuga Labs planned to use the capital to expand its activities and accelerate brand growth.
When launched, a BAYC NFT cost 0.08 Ether (ETH), the native cryptocurrency of the Ethereum platform. That 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 approximately $100,418. An NFT's floor price is the minimum price allowed for an NFT within a collection.
BAYC garnered interest from a few celebrities, who purchased the NFTs at inflated prices. Some high-profile stars who flaunt their BAYC include “Tonight Show” host Jimmy Fallon, who bought 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.
Contrary to popular belief, the images are not the non-fungible tokens. The tokens are a hashed version of the image's metadata, and the images are stored (hosted) elsewhere. The tokens are transferred when rights to the images are sold.
What Makes BAYC 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, demand, celebrity endorsem*nts, perks, and project development have driven the collection’s value.
Rarity
The array of BAYC’s unique traits and accessories are used to measure its value. The term “rarity” gauges how unusual an NFT is within a collection with an assigned number. In the BAYC collection, there are more than 160 traits, and each ape may have four to seven trait categories. These traits 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 Fur trait—making it a relatively rare variety of the NFT. Other characteristics of the #8817 token are the Silver Hoop Earrings and the Wool Turtleneck.
Celebrity Endorsem*nt
BAYC has enticed several celebrities and brands to own pieces of its NFT collection. Adidas contributed to the hype surrounding the NFT collection by launching “Into the Metaverse,” its native digital collectible, in partnership with Bored Ape Yacht Club, Gmoney, and PUNKS Comic.
Following the partnership launch, BAYC uploaded an image of a Bored Ape wearing an Adidas jacket on X. Gmoney tweeted a silhouette picture that displayed the Adidas logo. PUNKS Comic tweeted a picture of a character wearing a shirt bearing the Adidas logo.
Other celebrities, beyond those already mentioned, who bought BAYC include billionaire Mark Cuban, prominent X personality and DJ Steve Aoki, X personalities and musicians Post Malone and Mike Shinoda, and producer and songwriter Timbaland.
Perks and Development
One of the distinctive features of the Bored Ape NFT, compared with other NFT collections, is the perks. Owners of Bored Apes have exclusive access to a private Discord group where they chat, network, and build relationships with other Bored Ape members, including celebrities who own a Bored Ape. Ape holders also have access to “The Bathroom,” letting them draw whatever comes to mind on a virtual bathroom wall every 15 minutes.
ApeCoin is the official currency for the Bored Ape ecosystem and is used to purchase BAYC merchandise, event tickets, and more. ApeCoin DAO is a decentralized autonomous organization whose members—every ApeCoin holder—govern the DAO’s treasury and decide on future projects by voting on proposals.
Also, owning a Bored Ape is considered a status symbol among many individuals, contributing to its popularity among a certain crowd.
The Future of Bored Ape Yacht Club
Bored Ape Yacht Club has a community of active members, and the NFTs are actively traded on marketplaces. The ApeDAO consistently votes on funding for different project proposals and is searching for ways to further involve itself in Web3 development.
As of July 2024, the BAYC appears to be positioning itself for the future, but what that future entails is anyone's guess. While funded and apparently popular among a specific crowd, the project has somewhat faltered in finding its place in the market after its initial successes.
How Much Are Bored Ape Yacht Club NFTs Worth?
The price floor for BYAC on July 25, 2024, was 9.30 ETH, which was about $30,000.
What Does a Bored Ape Give You Access To?
A Bored Ape NFT gives you access to the project's Discord channel and ApeCoin, which can be used in governance activities within the ApeDAO.
What Happened to Bored Ape Yacht Club?
The NFT collection still exists, and there is trading activity, but the NFTs in the collection have dropped in value compared to their highs in 2021. In July 2024, many were priced between $28,000 and $36,000, with a few in the $40,000 range.
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 with the various additions and the project's evolution. Yuga Labs has introduced products built on the blockchain as well as physical products from the Bored Ape collection.
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