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What are NFT ‘Bored Apes’, and Why are They so Popular?

NFT bored ape

What are NFT ‘Bored Apes’, and Why are They so Popular?

Updated: by Lisha Pace

Key Points:

  • The Bored Ape Yacht Club is a collection of 10,000 Bored Ape NFTs – unique digital collectibles living on the Ethereum blockchain.
  • The value of cryptocurrency, in this case, Ethereum, can rise and fall like a stock, and NFTs values also rise and fall in the same way.
  • The original 10,000 NFTs were produced by an algorithm that randomly shuffles various combinations of background colors, fur colors, clothes, hats, eyes, mouth shape, and accessories.
  • The Bored Ape NFTs are status symbols – meaning that they get their value from branding and perception rather than from really being functional or useful.

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.

NFTs bored apes
The NFT market is rapidly expanding to include all of your popular culture favorites, from movies and music to sports.

©Rokas Tenys/Shutterstock.com

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.

Non Fungible Tokens

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.

Each of the 10,000 Bored Apes are unique and sold as NFTs.

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.

Avatar

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.

Investment

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 frame it next to their beanie babies, or maybe they’ll be worth billions.

Merchandise and Licensing

NFT Bored Apes are often used as avatars on social media.

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.

Up Next…

What are NFT ‘Bored Apes’, and Why are They so Popular? FAQs (Frequently Asked Questions) 

What are Bored Apes NFTs?

Bored Apes are a specific collection of 10,000 non-fungible tokens. Each NFT is a singular image of a unique Bored Ape. Every image is a portrait of an Ape with specific characteristics. The eyes, mouth, fur, background, clothes, and accessories of these images are features that have multiple options. 10,000 combinations were created to make the collection. Each option on each feature has a usage percentage. The less common combinations and accessories raise the value of the NFT. These Bored Ape NFTs are bought, sold, and traded using the cryptocurrency Ethereum.

How do I buy Bored Apes NFTs?

At opensea.io/collection/boredapeyachtclub you can bid on the entire collection of Bored Apes. You will need to purchase Ethereum to bid.

Who created Bored Apes NFTs?

Bored Ape NFTs was created by four friends interested in testing their skills, creating something interesting, and exploring the possibilities and benefits of Ethereum, blockchain, and cryptocurrency. The four creators were only known as thor screen names at first. Gargamel, Gordon Goner, No Sass, and Emperor Tomato Ketchup launched the Bored Ape Yacht Club on April 23.2021, and the collection quickly sold to the public.

How much is a Bored Ape NFT worth?

Anything is worth what you can sell it for. Currently, the prices range from $150 to $16mil. Each Bored Ape NFT’s value is determined by several factors. Last year they were worth 300 bucks. Who’s to say what next year will bring? They are also linked to Ethereum’s price as a cryptocurrency. Any change in that market will have a direct effect on the Bored Ape NFT’s value.

Why is Bored Ape Yacht Club so popular?

Bored Ape Yacht Club has an interesting design with 10,000 variations. The Bored Ape collection is objectively, and artistically better than any NFT collection in the past. The older collections were mostly pixelated and very simple. They were more focused on the economic functionality of an NFT collection. Bored Ape went the extra mile to hire an artist to design the characteristics in a splashy, engaging style. The combination of the art style and the volume of combinations draws attention. People either were drawn to the art and then were introduced to NFTs, or they were interested in NFTs and recognized that they would be successful.

How many Bored Ape NFTs are there?

There are ten thousand total Bored Ape NFTs. The number was capped at 10k to create a built-in scarcity. As the collection grows in popularity, the value of each Ape increases. If more Apes were produced and sold, then the overall price would decrease. This would cause a problem for anyone holding on to the initial collection. That would, in turn, cause a lack of faith in Bored Apes as an NFT and in NFTs in general. So, it’s unlikely that new Apes will be produced and added to the original collection. This doesn’t mean that a second-generation collection couldn’t be produced. They just wouldn’t be categorized and priced with the originals.

Why are Bored Apes so expensive?

Bored Ape NFTs are so expensive for several reasons. The first reason that they are expensive is that people decided to give them value. The second reason is that they are reasonably scarce since only 10,000 of them exist. The third reason is that they can be seen as a new form of futuristic metaverse currency that will only extrapolate in value as the crypto space grows in the global economy. Fourth, famous people make it look cool. Fifth, it’s a way to invest in quality digital art. Previous NFTs were pixelated and not very visually appealing. The artistic style was a large part of their popularity.

Each of these examples reinforces the first reason. They were given value by people. Individually, they are just a pile of monkey drawings. Together, they are greater than the sum of their parts. As a community and as an investment, Bored Ape NFTs seem to only be growing. It inherently creates a private club for the rich, famous, and powerful as the popularity of a purposely scared social resource continues to grow. It will be interesting to see how these super popular NFTs like Bored Ape will affect the metaverse, crypto space, art investing, and securities in general.

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