Despite the fact that non-fungible tokens (NFTs) have been around since 2014, they largely went unnoticed until last year. Many crypto users have probably heard of CryptoKitties but were unaware that they are an NFT. Mystery and excitement surround NFTs. Even people who have heard of them are unlikely to be able to tell you what they are.
CryptoPunks, an early NFT project, went on to become one of the most successful. However, it was not all smooth sailing. When they were first released, they were given away for free, but only a few were claimed. That changed after Mashable published an article about the project. The remainder of the collection was claimed within a few hours. The next day, one sold for around $3,500 in Ether.
In March 2021, things really got crazy when a CryptoPunk sold for $7.5 million. Then a digital collage by digital artist Mike "Beeple" Winkelmann sold for $69.3 million the next day. In June of 2021, another CryptoPunk sold for $11.8 million. These sales, as well as celebrity purchases, brought a lot more attention to NFTs. In 2022, an NFT from The Merge sold for nearly $92 million, throwing more fuel onto the NFT fire.
What is Bored Ape Yacht Club?
Yuga Labs created the Bored Ape Yacht Club (BAYC) collection in early 2021. Yuga Labs began with four people, all of whom were known publicly by their pseudonyms. Gordon Goner and Gargamel, the co-founders, and two friends calling themselves No Sass and Emperor Tomato Ketchup came up with the BAYC concept.
According to Yuga Labs, the inspiration for BAYC stemmed from a long history of crypto enthusiasts referring to themselves as apes. The group decided to create a collection of apes who theoretically became extremely wealthy because of the rise of cryptocurrencies. With their newfound wealth, the apes became bored and settled into a swampy secret club.
BAYC is a collection of 10,000 NFTs with varying traits and outfits that were minted on the Ethereum blockchain. Apart from the enjoyment of owning an ape, each NFT has several benefits. As the name implies, the BAYC is an exclusive club. Possessing one of the NFTs entitles you to membership in that club.
Because of the numerous celebrities who have purchased Bored Apes, not only have prices skyrocketed, but the club's status has also increased. Owning a Bored Ape grants you access to additional NFT collectibles. Free Bored Ape Kennel Club NFTs and free mutant serum NFTs are two examples. These freebies are still quite valuable on their own. When combined with a BAYC NFT, the mutant serum results in a mutated ape.
Bored Apes vs. Mutant Apes
"Which came first, the chicken or the egg?" asks the famous question. That is a contentious issue, but there is none in the case of Bored Apes and Mutant Apes. It is well established that Bored Apes are the originals, and Mutant Apes are their offspring. On August 28, 2021, all 10,000 BAYC NFT owners received one of three types of mutant serum. They could use that serum to mutate their apes. Following the completion of the serum airdrop, the BAYC team announced that 10,000 more mutants would be made available to the general public.
The BAYC team has been wary of oversaturating the market. Every addition to the BAYC community is intended to increase the community's value. In addition to the mutant serum, Bored Ape owners received a free dog from the Bored Ape Kennel Club. Owners of Bored Apes also own the intellectual property rights to their NFTs. The benefits of owning a Bored Ape will grow over time as the BAYC roadmap goals are met.
Keep in mind, however, that the BAYC feud with Ryan Ripps is a real concern, and there’s no way to know how it will impact the project over the long-term. While some claim that Bored Ape is a sham and conspiracy theories abound, others look at this as typical bad press that any big business could face. Do your research before investing and watch the news because you never know when these stories could pick up more steam.
Why Are Bored Apes So Valuable?
Explaining what gives a specific item its value can be difficult at times. Value, like beauty, is frequently in the eye of the beholder. In the case of NFTs, rarity, as well as the benefits associated with the NFT, play a role. This kind of allure is unquestionably true for BAYC NFTs. They are rare, with only 10,000 available, and each comes with perks that have only grown in value over time.
Aside from rarity and utility, timing may have played a significant role in the meteoric rise of BAYC prices. The April launch occurred in the midst of some astronomical NFT sales and before the NFT market exploded in the summer. Many people were probably speculating in search of the next big thing, and BAYC was there at a reasonable price.
Then BAYC benefits from the celebrities who have joined the club. Their participation has acted to increase not only prices but also the club's prestige. Possessing a BAYC NFT has developed into a significant status symbol. Apart from membership in an exclusive club, BAYC owners have access to a private Discord server. For some, the opportunity to interact with celebrities, whether in the club or via Discord, is extremely valuable.
Ape Token Airdrop
Yuga Labs announced on December 13 that it had partnered with Animoca Brands to develop a play-to-earn blockchain game. Animoca Brands publishes the metaverse game “The Sandbox.” It is also an investor in other play-to-earn games and projects. The BAYC game is scheduled to be released in the second quarter of 2022.
The game will include Bored Ape NFTs, but the announcement provided few other details. So far, the developers haven’t said which blockchain the game will run on, but it will likely be Ethereum or a Layer-2 on Ethereum. It is also unclear whether the game will be open to the public or only to BAYC NFT holders. "We're excited to work with Animoca Brands to grow the BAYC universe and expand the utility and benefits offered to all Bored Ape NFT holders," said a spokesman for Yuga Labs.
The BAYC team announced on October 8 that it plans to launch its own token in the first quarter of 2022. It stated in a Twitter post that it wants to take its time building a legally compliant and sustainable token. To make this a reality, it is collaborating with the Fenwick & West legal team and Horizen Labs for blockchain development.
If you own an NFT or either of the main collections you could have claimed your tokens anytime during the 90-day claiming period starting March 17, 2022. Yuga Labs, the company behind BAYC, most recent airdrop consisted of their new token Apecoin. Bored Ape holders can got precisely 10,094 tokens per ape. Mutant holders only got 2,042 tokens per mutant.
How to Buy NFTs
An ever-expanding list of blockchains support NFTs, but Ethereum is by far the most dominant. Ethereum is also home to some of the most popular NFT projects. When it comes to NFT marketplaces, OpenSea was the first and continues to be the largest by a wide margin. If you're looking for an NFT, chances are you'll be dealing with both of them.
To begin, you'll need a wallet that can connect to OpenSea. There are several options, but MetaMask and Coinbase Wallet are 2 of the best. To make purchases, you'll also need enough Ether (ETH) in your wallet. If you don't already have a crypto exchange account, Gemini and eToro both have excellent trading platforms.
While browsing OpenSea, you will notice two types of listings, On Auction and Buy Now. You will also see that you can make an offer on the Buy Now listings. You might give this a shot if you want to try and get it for less than the Buy Now price. However, you take the risk of someone else coming along and buying it out from under you.
Once you find an NFT that you can’t live without, connect your wallet to OpenSea. Next, click on the NFT and click on Buy Now or make an offer. Follow the prompts, and when your wallet pops up, confirm the transaction. However, pay close attention to the gas fees; they can be extremely high at times. It would also be good to customize your profile on OpenSea, as you can use the site to display your NFTs.
How to Store NFTs Safely
If you've spent the time and money to find the perfect NFT, you'll want to keep it safe. Hot storage wallets, such as MetaMask and Coinbase provide excellent security and convenience. However, if you intend to keep your NFTs for an extended period of time, a cold storage hardware wallet is by far the most secure option.
What makes a hardware wallet so secure? One reason is that it only connects to the internet for managing your assets. The rest of the time, it is isolated from the internet. The ability to isolate it makes it difficult, if not impossible, to be hacked. In contrast, a hot storage wallet like MetaMask is always connected to the internet.
Ledger is one of the best hardware wallets on the market. Used with the Ledger Live application, you can easily manage your digital assets. Ledger also contains industry-leading security. It features a certified Secure Element chip and its proprietary operating system called Blockchain Open Ledger Operating System (BOLOS). You would be hard-pressed to find a more secure hardware wallet.
Is BAYC a Good Investment?
If you have the capital to invest in a BAYC NFT, would it be a good investment? That is a very tricky question. Prices have skyrocketed since the release, and the question is how much higher can they go? One positive is that the BAYC team continues to expand the BAYC ecosystem. The upcoming Ape token as well as increased utility and added perks should add value. However, remember that BAYC NFTs are speculative and carry a lot of risk.
Frequently Asked Questions
What is the rarest Bored Ape?
The rarest Bored Ape is Ape #7495. It is rarest for its most exclusive traits of the dagger in its mouth known as “Bored dagger” in which only 49 (0.49%) Apes have; And, its cyborg eye, in which only 108 apes have (1%).
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