Why Are Bored Ape NFTs So Expensive?

Why Are Bored Ape NFTs So Expensive

Looking to join the elusive Bored Ape yacht club? Know what you are spending your money on! 

Earlier this month, the owner of Bored Ape non-fungible token (NFT) number 3547, Maxnaut, made a disastrous error by listing the NFT for 0.75 Ethereum (ETH) instead of 75 ETH, which was how much Maxnaut wanted to sell it for. In doing so, Maxnaut lost US$250,000. The NFT was picked up really quickly, with the buyer paying a heavy gas fee of 8 ETH.

Maxnaut’s loss garnered significant media attention, with many news sites reporting on his blunder. But even before that, Bored Ape NFTs were popular. The project was launched in April 2021 and, within 12 hours, they were entirely sold out. The most expensive Bored Ape (that is, Bored Ape #8817) was sold for US$3.4 million. Bored Ape NFTs’ popularity and value only rivals that of Cryptopunks (which are some of the most expensive NFTs ever sold). Bored Apes’ popularity begs the question—Why are these NFTs so expensive? What is hiking up their value? Let’s take a look at the reasons one by one.

Uniqueness

Much like Cryptopunks, Bored Apes are also rare collectible collections of 10,000 digital avatars. Each Ape is a unique combination of 170 characteristics, including expression, headwear, clothing, etc. While each individual Ape is different, some are rarer than others. In fact, some traits, like golden fur and laser eyes, are so rare that less than one percent of all Apes have them. This, in turn, drives up the price of the Apes. 

All Bored Ape NFTs were originally up for sale for 0.8 ETH and within 12 hours of being listed, NFT enthusiasts quickly grabbed them up. Today, the floor price of an Ape NFT is 68.5 ETH

Yacht membership benefits

Yacht membership benefits
Bored Apes’ yacht club

Each Bored Ape comes with a yacht club membership. Membership gives ape NFT holders access to community events. Members also get access to a special Discord server and a private digital area called “The Bathroom” that members can use as a graffiti board. Bored Ape holders also get commercial usage rights for their NFTs. This means that not only can they re-sell the NFT at a higher price point, but they can also sell any kind of spinoff products based on the NFT they own.

This membership puts you in a common club with high-profile celebrities, like Jimmy Fallon, Post Malone, Mark Cuban and Shaquille O’Neal among others. Bored Ape Yacht Club members don’t necessarily limit their interactions to the internet. In November 2021, they organized a party on an actual yacht off the coast of Manhattan. 

Exclusive content

Another part of Bored Ape NFTs is access to exclusive content. Bored Ape’s website has a detailed roadmap of what they seek to do as they meet their various sale percentage quotas. 

One of the exclusive content benefits that they have already provided their NFT holders includes airdropping five “Caged Apes” (tokens that were held back from sale). 

Another one was that, in June this year, every Bored Ape holder was allowed to mint a canine companion NFT for free. With this, the Bored Ape Kennel Club was born. The club raised US$1 million in charity for animal shelters from secondary sales of canine companions. 

The developers have been consistently innovating with the NFT project to keep themselves relevant. They have created 20,000 mutant Apes, of which 10,000 are preserved for the Bored Ape owners, and the others are an attempt to bring new members in. Current Bored Ape holders must combine their Ape NFTs with a serum NFT to create mutant apes. Different serums (M1, M2, M3) have been airdropped to different Ape holders and each can create different mutant Apes. The M3 serum creates the most exaggerated mutant Apes. 

To sum up, across the factors mentioned above, we can see the presence of active community engagement, which eventually contributes to the popularity and high prices of Bored Apes. Their community not only gets special perks but also interacts among themselves. With that and the membership of a privileged community—no wonder why everyone wants to nab a Bored Ape NFT. 

All images courtesy of Bored Apes’ Website 

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email
Kamya Pandey
Kamya is a writer at Jumpstart. She is obsessed with podcasts, films, everything horror-related, and art.

RELATED POSTS

What Is the Best Business Model for an Online Food Delivery Startup

What Is the Best Business Model for an Online Food Delivery Startup?

As per a McKinsey report, the food delivery business was worth over US$150 billion in 2021. The global food delivery markets are four to seven times larger than they were in 2018. Every day, more and more people rely on apps to get their food delivered home. It is convenient, fast and affordable for customers.

Are DAOs the Future of Work and Startups

Are DAOs the Future of Work and Startups?

In August 2021, India-based blockchain startup Polygon decided to build the country’s first decentralized autonomous organization (DAO)—an organization run by its members, without any leader, on a blockchain. With the DAO, the startup aims to give users decision-making power to influence and even map out the startup’s future.

Why Is OpenSea Worth US$13 Billion

Why Is OpenSea Worth US$13 Billion?

Online non-fungible token (NFT) marketplace OpenSea is now worth US$13 billion, following a new investment of US$300 million in a Series C finance round led by hedge fund sponsors Paradigm and Coatue. Half a year ago, OpenSea was only valued at US$1.5 billion.

Why Is the IMF Concerned about Cryptocurrency

Why Is the IMF Concerned about Cryptocurrency?

With the crypto market hitting US$3 trillion as of November 2021, it is almost impossible not to believe that we are amid a crypto boom. While investors and miners might be excited about the rising interest in crypto, there are some who do not see this as a positive step.

How Do Crypto Liquidity Pools Work

How Do Crypto Liquidity Pools Work?

Be it for startups launching Initial DEX Offerings (IDOs) on decentralized exchanges (DEX) or cryptocurrency traders—liquidity pools have become indispensable. Liquidity pools are the virtual places where trading happens and companies make money. Before understanding their mechanism, let’s take a look at what they are.