NFTs or non fungible tokens are digital assets that provide verifiable ownership and are stored on the blockchain. Since the rise of CryptoPunks in 2017, numerous NFT projects have arisen including the Bored Ape Yacht Club which inspired what some would consider a cult-like following.
Yuga Labs’ Bored Ape Yacht Club is a collection of 10,000 unique ape-based NFTs. Each Bored Ape is distinctively different and was generated from over 170 traits (drawings). Owners of the avatar-based NFT line are granted membership to perks like the bathroom (a collaborative canvas in the metaverse), merch, and more.
The Bored Ape Yacht Club has seen an enormous amount of success with the floor price continuously rising and with the project being featured by Christie’s, one of the largest fine art auction houses.
The NFT line launched towards the end of April and quickly sold out. Originally, minting a Bored Ape cost 0.08 ETH which was roughly $200 USD at the time. Since there are 10,000 Bored Apes, the project quickly accumulated $2 million in sales!
The avatar-based NFT line has a ‘90’s inspired artistic look. Due to the array of traits – including the Sea Captain’s Hat, Halo, Bored Bubblegum, Laser Eyes, and more – people have become quite enthusiastic about the artwork.
Many find the artwork appealing which resulted in many users on social media changing their profile picture to their Bored Ape. Users, especially on Twitter, began doing this which created what people would consider a strong community (cult-like following) for the project.
In this article, NFTexplained.info will cover what makes the Bored Ape Yacht Club a good project, discuss the merchandise for the project, explain a walkthrough on purchasing a Bored Ape, and discuss if the project is a good investment. We will end our article with a quick explanation of the price floor.
What Makes The Bored Ape Yacht Club A Good Project?
Many people would consider BAYC to be a blue chip NFT project. Why is this?
As a general statement, Bored Ape Yacht Club is successful because of its strong community and appealing artwork. The NFT project provides a membership aspect to it and has emerged as a leader in the NFT avatar space. Members also get access to the bathroom (a co-authored digital graffiti wall), merch, air drops, and more.
Having a Bored Ape as your profile picture began to serve as membership in a community. On social media, Bored Ape profile picture users would follow one another and their profile picture would serve as a way to show status.
Another example of a profile picture conveying status would be Jay-Z’s profile picture which is a CryptoPunk.
Each Bored Ape has a clean background color and each one is visually stimulating. Some apes are more appealing due to factors like traits that few apes have and a better looking ape overall.
Members have lots of utility and can access the bathroom which is where ape holders can paint a pixel on the wall every 15 minutes; it can be thought of as a collaborative art experiment.
Exclusive merchandise is available to Ape holders such as limited edition hoodies as well as tee shirts.
Bored Ape members were also airdropped or essentially given the ability to mint a Bored Ape Kennel which is a dog-themed NFT.
Yuga Labs has a roadmap and plans to add more features which will likely result in users wanting to hold the project long term.
Yuga Labs has also donated an immense amount of money via The Giving Block which is a crypto donation platform primarily for charities and nonprofits. Yuga Labs has donated roughly roughly $900,000 USD to Orangutan Outreach which has the mission of protecting orangutans in their native forests. They have also donated to Wright-Way Rescue and Friends of Bonobos.
Bored Ape Yacht Club Merchandise
As NFTexplained.info previously mentioned, purchasers who hold an Ape are granted the ability to purchase exclusive merchandise.
Merchandise for the Bored Ape Yacht Club is available for holders of Bored Apes. This includes a range of limited edition items such as hoodies, tees, and other goodies. By connecting your MetaMask wallet (containing a Bored Ape) to the BAYC website, merchandise will be available for purchase.
Purchasers of Bored Ape NFTs own the intellectual property/rights to the purchased Ape. This means Ape owners have the potential to make their own merch based off the Ape they own, knowing they won’t be sued for copyright infringement.
How To Purchase/Become A Member Of The Bored Ape Yacht Club
If you are looking to purchase a Bored Ape you can do so through a simple process. NFTexplained.info has broken down the steps in a way that is easy to understand.
The process involves three simple steps. Firstly, users must establish a digital wallet that interacts with the blockchain. Secondly, users need ETH in their wallet to fund the transaction. Thirdly, buyers need to purchase the item and pay the transaction fee. These NFTs can only be purchased in the secondary market.
The first step in the process is establishing a digital wallet that is able to interact with the Ethereum blockchain. The most commonly used digital wallet is MetaMask because of its simple user interface.
This process is quite simple and the NFTexplained.info team has already published an article explaining precisely what the MetaMask wallet is, how it works, and a step by step guide for users. That article can be found here.
For the purchasing of a Bored Ape, Ethereum (ETH) is required in order to complete the transaction. On MetaMask users have the option to directly purchase ETH using a debit card or can exchange a variety of cryptocurrencies for ETH.
It is important to note that a ‘gas fee’ must be paid or this transaction won’t complete – a miner needs to verify the transaction and need to be rewarded for their work.
A lot of energy is required; miners don’t work for free and the whole process is energy intensive. Users also have the option to purchase ETH from Coinbase as long as the address of the digital wallet is connected, which is also a very simple process.
If you would like to learn how much energy an NFT consumes; NFTexplained.info has created the perfect article for you. We will break down proof of work and proof of stake consensus algorithms and explain how much energy an NFT built on the Ethereum blockchain uses.
Once the MataMask wallet is connected and enough ETH is in the wallet to purchase and pay for the minting (gas fee) of the NFT, users have the option to purchase and bid. Users also have the option to mint (sell) their own NFTs or resell any NFT they have already purchased.
If you would like to learn about the largest NFT marketplace, the NFTexplained.info team has created a complete tutorial on OpenSea and we have broken down the marketplace in a way that is easy to understand.
While in the process, you may find more NFTs that are intriguing to you and provide the opportunity to make a profit by reselling them.
Since more users are transacting on the Ethereum network, gas fees tend to be much, much higher at this point in time.
The procedure of purchasing an NFT is done through the use of smart contracts; this is computer programming and is what makes the NFT process possible. Smart contracts allow the wallet to interact with the blockchain.
Happily, the NFTexplained.info team has created a smart contract article to help you understand exactly how it works and to provide you with some examples.
Is The Bored Ape Yacht Club A Good Investment?
NFTexplained.info is a team of crypto investors who have blockchain experience; we are not financial advisors. As with any investment you make, make sure to complete your own due diligence before taking any action.
NFTs are highly speculative investments however, many consider the Bored Ape Yacht Club to be second to CryptoPunks in terms of their notoriety and it is evident that a strong community has been grown around the project. BAYC could be a good investment due to perks that come with ownership, and, Yuga Labs has a promising road map.
Numerous factors from the project look appealing and there is potential for this NFT line to have an even higher floor price than what currently exists.
What Is The Floor Price For The Bored Ape Yacht Club?
The floor price and pricing for all Bored Apes can be found on OpenSea. NFTexplained.info has displayed the link below.
Floor price is the lowest price the NFTs are currently being sold for.
The floor price for the collection typically fluctuates around 15 ETH give or take. Take a look for yourself:
If you are interested in learning about other NFT projects, NFTexplained.info has created a complete guide for numerous projects and artists. To list a few:
We hope you are just as excited as we are about NFTs and continue to stay informed at NFTexplained.info. To get the latest news in this rapidly evolving space, follow our team on Instagram & Twitter!