The Bored Ape Yacht Club is a collection of 10,000 NFT avatars that are each a unique style of a cartoon ape. Each Bored Ape has a different combination of background color, eyes, mouth, clothes, hats, moods, features, and accessories. The combinations of these attributes were used to generate 10,000 individual Bored Ape Yacht Club avatars.
The avatars were released in groups and people could purchase them with a popular type of cryptocurrency called Ethereum. The value of cryptocurrency can rise and fall like a stock, and NFTs values also rise and fall in the same way. The instability of these two prices makes owning, buying, and selling NFTs with cryptocurrency very volatile. The first release of Bored Ape NFTs cost roughly $300 in Ethereum each. Since that time, the price for one of these NFTs has skyrocketed to several hundred thousand dollars. There are a few Bored Apes that have sold for millions of dollars worth of Ethereum.
NFTs or “Non Fungible Tokens” are financial securities that consist of digital data stored in a digital ledger known as a blockchain. NFTs are usually video, audio, and photo files. This means that the blockchain stores the digital information of the NFT including ownership rights. This information allows the NFT to be bought, traded, or sold in the crypto space. These NFTs are unique files with a purchase history that can be verified with the blockchain. The value of an NFT comes from market demand and intentional scarcity. The scarcity is defined by the limit of 10,000 total apes, and the demand was cultivated through several different tactics.
What are NFT ‘Bored Apes’?: Complete Explanation
NFT Bored Apes are a collection of 10,000 illustrated Ape images. Each image is a portrait of an Ape with a colored background. The Apes have several characteristics that are changed and shuffled together to make 10,000 unique NFTs. Every feature of the image has several different options. Clothes and hats are different. Teeth, eyes, and mood are all interchangeable.
This collection of images is bought, sold, and traded as NFTs. The different attributes, styles, combinations, and designs each help to create an Ape with a specific value. The NFTs are viewed as a security and their value adjusts to the market. They might become wildly valuable, or they might evaporate at any moment. If they can keep enough attention over a long enough time, they might be able to stick around as digital art and a commodity. Time will tell.
NFT ‘Bored Apes’: An exact definition
Bored Ape Yacht Club (BAYC) is a collection of 10,000 Ethereum-based non-fungible tokens (NFTs) that launched in 2021.
How does NFT ‘Bored Apes’ Work?
NFTs are unique audio, video, text, and image files that are unique to themselves and verified on a blockchain. This collection of 10,000 Bored Ape image NFTs have been sold to the public and is now used as a form of currency, status, security, and art. Each form adds value to the Bored Ape NFTs. The high-quality illustrations are a clear step up from previous NFT collections. The older collections were usually 8-bit style pixel images. The thousands of variations to a single ape template simultaneously present a rooted structure to the art style while having 10,000 unique versions. The people that own these ape NFTs are part of a group while also being an individual. Each person also has a shared interest in raising the value of the collection as a whole. A rising tide lifts all ships. It has benefits for everyone.
The various features of each ape design affect the price. Unique hats, clothes, backgrounds, and such are more valuable than the more common features. Each aspect of an ape’s design has a percentage of use. This combination helps to determine its sale price.
The Bored Apes are used as avatars on social media and throughout the metaverse. The use of these avatar apes helps to grow and expand the value of the NFTs through the community. The rich and famous have taken an interest in these NFTs and that significantly improves the perceived value when a celebrity uses an ape as their avatar.
The price of the Bored Ape NFTs fluctuates, the price of Ethereum cryptocurrency fluctuates, and the price of both has steadily risen. This new type of investment could create several benefits for early adaptors. There is also the very real possibility that they could both crash at any moment. NFTs only have as much value as people believe that they do. Art is the same way. Two cents of paint on a four-dollar canvas can sell for millions of dollars. It’s all about perception. If a laser beam zombie ape is more valuable than a crying mohawk ape, then that’s the way it is because the market currently supports it. All of that “value” can instantly evaporate. Afterward, someone has a big bag of money and someone has a picture of a monkey in a cowboy hat. They can fame it next to their beanie babies, or maybe they’ll be worth billions.
Merchandise and Licensing
Each Bored Ape NFT is entirely the property of whoever owns it on the blockchain. That person can use their specific ape in any way that they see fit. They can market the image in any way that they wish. They can print shirts or hats. They can produce an animated series if they so desired. But they would only be able to use the Bored Apes that they own.
How do You Create NFT ‘Bored Apes’?
There are 10,000 Bored Ape NFTs. They have already been created and sold. It is unlikely that any new apes would be produced because it would decrease the value of the Bored Ape NFTs that currently exist. There is another collection called the “Mutant Ape Club”, but they are the second generation.
The original 10,000 were produced by an algorithm that randomly shuffles various combinations of background colors, fur colors, clothes, hats, eyes, mouth shape, and accessories. The creators hired an illustrator to create the various visual options and an algorithm to randomly combine them into 10,000 variations. Those 10,000 variations were sold to the public and now they are bought, sold, and traded as one of the most popular NFT collections on the market.
What are the Applications of NFT ‘Bored Apes’?
Bored Ape NFTs can be bought, sold, and traded for Ethereum cryptocurrency. That cryptocurrency can also be bought, sold, and traded with the US dollar. These connections each have a connection point, and that is where money is won or lost. The value of all three is constantly fluctuating. The US dollar is the most stable currency, and that sets the foundation for traders to make or lose money on the NFTs or the cryptocurrency Ethereum itself.
Examples of NFT ‘Bored Apes’ In the Real World
Bored Ape NFTs can be seen as avatars on social media, merchandise, or any form of media. The purpose is to raise their status, and in doing so, they raise the value of the NFTs. The rich, famous, and powerful own these NFTs so they have a financial motivation to incorporate these Bored Ape NFTs into the real world as much as possible.