The Bored Ape Yacht Club (BAYC) stands as a prominent collection of 10,000 unique Bored Ape non-fungible tokens (NFTs) residing on the Ethereum blockchain.
Each ape, encapsulated as an ERC-721 token, boasts a unique token ID linked to its distinct artwork image. This allows token holders to verify the provenance of their apes via the Bored Ape Yacht Club’s official website. These NFTs are differentiated by their metadata—spanning backgrounds, earrings, clothes, fur, and eyes. They feature profile pictures of cartoon apes adorned with a variety of traits, including diverse facial expressions, clothing, and accessories.
Despite NFTs being in existence for five years, the surge in their popularity didn’t take off until 2021. This aligned closely with the launch of BAYC, which has since emerged as a leading figure in the NFT realm.
Creation
Yuga Labs, the creator of the apes, launched them in April 2021 amidst the peak of the cryptocurrency bull market. The team behind Yuga Labs includes four pseudonymous core members. Gordon Goner and Gargamel are the co-founders. They worked along with No Sass and Emperor Tomato Ketchup, who spearheaded the technical development of BAYC.
On 11 March 2022, Yuga Labs expanded its portfolio by acquiring the intellectual property rights for the CryptoPunks and Meebits NFT collections. CryptoPunks is another pioneering NFT project, which was once among the most valued NFT collections on the marketplace OpenSea. However, it got delisted in February 2022 for a copyright violation.
Meebits, on the other hand, is a collection of 20,000 3D-voxel characters represented as NFTs which can be traded. They are animated and can be used as metaverse avatars. These NFTs were developed in 2021 by Larva Labs, who are also the creators of the CryptoPunks collection. Following the acquisition, BAYC gained control over the branding and logos of these two collections.
Yuga Labs also secured $450 million in a fundraising round led by A16z crypto, which is capital market company Andreessen Horowitz’s crypto fund. This helped the company to reach the value of $4 billion in March 2022.
The Rise of BAYC
The ascent of the Bored Ape Yacht Club (BAYC) in the NFT marketplace is a testament to the explosive interest and investment in digital collectibles. Launched at a time when the cryptocurrency market was experiencing unprecedented growth, BAYC quickly set itself apart from other NFT projects. Initially offered at 0.08 Ether ($ETH), equivalent to roughly $220, the collection sold out within a mere 12 hours of its launch.
By mid-October 2022, the floor price of a BAYC NFT had surged to 76 $ETH, approximately $100,418, reflecting a significant appreciation in value. This remarkable increase was not just a result of the rising price of Ether but also the growing recognition of BAYC as a premier NFT collection. The collection’s visibility was further boosted by its coverage in mainstream media outlets such as The New York Times, The Wall Street Journal, and Time magazine, which helped attract a wider audience.
Over the years, the BAYC collection has been embraced by celebrities and high-profile individuals, adding to its allure and desirability. The involvement of stars like Jimmy Fallon, Steph Curry, and Snoop Dogg, among others, has not only increased visibility but also validated the collection’s status as a cultural and digital asset. This celebrity endorsement has played a crucial role in elevating the perceived value of BAYC NFTs, making them coveted items among collectors and investors alike.
What Makes BAYC Valuable?
The value of the Bored Ape Yacht Club collection is multifaceted, rooted in its rarity, celebrity endorsements, and the unique utilities and perks it offers to its owners.
Rarity
The BAYC collection is distinguished by its array of unique traits and accessories, with over 160 traits across different categories such as background, clothes, earrings, eyes, fur, hat, and mouth. This diversity ensures that each ape is unique, with some combinations of traits being rarer and more sought-after than others. The concept of rarity within the collection creates a tiered value system, where certain apes are deemed more valuable due to their unique attributes. For instance, BAYC #8817, known for its Solid Gold Fur trait, fetched $3.4 million at auction, highlighting the premium placed on rare traits.
Utilities and Perks
Beyond the digital artwork, owning a Bored Ape offers access to an exclusive ecosystem of benefits. Owners are granted entry into a private Discord group, fostering a sense of community and networking opportunities among members, including celebrities. Additionally, BAYC has introduced utilities like ApeCoin and ApeCoin DAO, enhancing the ownership experience. ApeCoin serves as the ecosystem’s currency, enabling transactions for merchandise, event tickets, and more. ApeCoin DAO, on the other hand, allows holders to participate in governance decisions, shaping the future direction of the BAYC ecosystem.
Celebrity Endorsement
The BAYC collection has attracted a host of celebrities and notable figures, who have publicly shared their acquisitions. This celebrity endorsement has significantly contributed to the collection’s prestige and desirability. When influential personalities in entertainment, sports, and business invest in BAYC NFTs, it signals to the broader market the collection’s value. It further positions them as a potential investment, thereby driving up demand and prices.
Metaverse Integration
In 2023, Yuga Labs completed a significant restructuring to sharpen its focus on the development of Otherside, which is a gamified and interoperable metaverse project that Yuga Labs initiated in March 2022. The restructuring process revolved around optimising the company’s team configurations to better align with the ambitious goals of Otherside. It is envisioned as a cornerstone experience, promising to offer a unique blend of gaming, social interaction, and digital asset ownership within a virtual world.
The focus on Otherside demonstrates Yuga Labs’ dedication to leading the charge in metaverse innovation, setting the stage for BAYC to play a pivotal role in shaping the future of digital interaction and community building in virtual spaces.
