In just one year, the Boring Ape Yacht Club (BAYC) has grown from a niche NFT to a complete ecosystem and a mainstream means of showing off wealth.
Take a look at the timeline on Twitter, The Boring Ape brought NFTs into the public eye while generating huge gains for all early collectors and traders.
The series has a mint price of 0.08 ETH, (just $190 in April 2021), but right now, the cheapest monkey costs at least ~$340,000.
However, the rise of BAYC has disgusted many initial digital art lovers , who feel that the project has been taken over by embarrassing scam-prone newbies and celebrities, and that the core team has abandoned Crypto’s most important values.
For many, the recent scandal surrounding the Otherdeeds coinage was the last straw .
APE, BAYC and OTHR have all seen huge declines since launch.
With confidence shaken and loyalty waning, what does the future hold for the Boring Ape?
The initial success of the Boring Ape can be attributed in part to timing; the Boring Ape emerged during Shitcoin ‘s peak, when DeFi tokens were about to collapse, and then the NFT summer kicked off.
BAYC’s aesthetics and add-ons have managed to capture the vibes of the bearer that its predecessors missed.
In fact, the project has completely eclipsed CryptoPunks. First was the ” flip ” late last year, when the rising BAYC floor price surpassed Punks’ around 60 ETH, and then in March Yuga finally acquired Larva Labs for an undisclosed sum.
However, success always attracts haters. At the moment, there are not a few attempts to discredit the project, and it’s up to you to decide whether they’re really worth paying attention to.
- Remember when the team was being searched for by humans?
- Remember when The Boring Ape was involved in racism ?
- Remember all the ” Boring Ape Hacked” times?
It can be said that most people in the NFT field are not “for technology”.
Claims of BAYC owners falling victim to scams and “hacking” have never ceased and are well documented.
The boring ape was hot in the market, and during the period when everyone was ape in, it brought huge profits , but it was the hunters who made the most profit .
There are many ways to separate bored apes from their owners, from verified Twitter accounts posting phishing links, to exploiting vulnerabilities in the OpenSea user interface , BAYC Discord being hacked, and of course, more recently, Instagram Hacking, the total loss is estimated at $2.4 million .
The project has had its fair share of scandals, but that hasn’t stopped it from going mainstream.
Snoop Dogg is just one of several celebrities involved in the project, many of whom were assisted by “Moonpay”, the agency that provides NFTs to celebrities, or is Moonpay assisted by these celebrities?
Various celebrities have participated in NFTs, and their responses have always been polarized.
Bagholder rejoices, while onlookers cringe at the unnatural collaboration between two brands fighting to get your attention.
We can forgive those who doubt the authenticity of celebrities appearing in NFTs.
Yuga Labs and fans continue to capitalize on BAYC’s success, launching spin-offs like the Bored Ape Kennel Club and Mutant Ape Yacht Club, and even opening an offline burger joint .
However, the ultimate monetization strategy is inevitable.
ApeCoin, the currency of the boring ape, was launched on March 16 and airdropped to all BAYC holders.
With a staking program that can be described as ” paying those who hold ApeCoin with ApeCoin, ” is it fair to say that providing exit liquidity to teams is a key function of the ApeCoin token mechanism?
Maybe not… ApeCoin can be used to buy NFTs on OpenSea, and it will be the native currency of the much-hyped Metaverse of the Boring Ape. In “Otherside”, fans will be able to buy land (Otherdeeds) with ApeCoin.
The Otherdeeds minting kicked off shortly after ApeCoin launched, as Yuga Labs was keen to provide some utility for the token.
The mint was a huge success, but mostly for Yuga Labs, not anyone else.
The first red flags came before the rollout.
Minting requires users to perform KYC in advance before paying the mint price of 305 APEs (~$6k) to ensure that the price of APEs is pushed above $25 in anticipation of potential landowner purchases.
Then, aside from a coercive cyber scam , the launch brought the ethereum network down for two hours. Gas prices skyrocketed, while users paid 60,234 ETH ($170.8 million) to mint land NFTs, with 1,653 ETH ($4.7 million) lost purely due to failed transactions.
Yuga Labs has announced that they will refund the fees of all failed transactions, and of course, the program has become the target of yet another phishing site .
In addition to Gas, the sale brought Yuga $320 million in minting fees, plus about $475 million in secondary sales, bringing OpenSea’s daily trading volume to an all-time high .
All BAYC-related products dropped significantly in value after launch.
Apecoin is currently down >40% and Otherdeeds itself is down over 50%.
Yuga Labs’ response to the confusion was seen as arrogant, blaming “Ethereum’s bottleneck” and suggesting the Boring Ape universe move to its own chain.
The statement was not positive, with some pointing out that over 40,000 excess ETH (>$100 million) was destroyed due to a lack of gas optimization for minting contracts.
Burning so much ETH might be bullish, but it seems like a waste.
Aside from the bearer’s bad OpSec story, this is already the first undisputed negative PR incident in the BAYC world.
Through its steady stream of new product launches, Yuga Labs excels at maintaining the necessary hype around the BAYC ecosystem.
Will Ape-chain be their next solution? Possibly, and who can blame them for going this route?
For them (and their holders), a centralized L1 might be a better solution. They are so rich and capable of building anything they want.
Yuga isn’t a tech company, (as we’ve seen from Mint), but they’ve done a great job at their job, and if they can keep up the hype, their current focus on branding and marketing is sure to lead to something more.
Yuga’s revenue model is basically fueling FOMO, selling heated air (or more recently gas), which works great for them.
However, even the gurus of marketing cannot escape the ” Elon effect “.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/baycs-business-story-fueling-fomo-to-sell-air/
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