Detonated the NFT market BAYC launched the token ApeCoin after acquiring CryptoPunks

On March 12, 2022, Yuga Labs, the parent company of BAYC (Bored Ape Yacht Club), announced that it has acquired the IP of the CryptoPunks and Meebits NFT collections from Larva Labs, and promised to grant the above two project holders soon. Same commercial rights as BAYC and MAYC (Mutant Ape Yacht Club) holders. This blockbuster news in the NFT field directly detonated the entire encryption community, and some people likened it to: “Ethereum” in the NFT world acquired “Bitcoin” and “Litecoin” in the NFT world. Following the acquisition, BAYC announced the official launch of ApeCoin (APE), an ecologically relevant token, owned and operated by ApeCoin DAO. For this series of combination punches, some media said that the BAYC acquisition case can be called a model for the integration of the NFT industry. The popularity of APE is also expected, and many head platforms have announced that the project will be launched soon.

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B AYC topped N FT , over-concentration aroused concern

In the field of encryption, the discussion on whether Ethereum can break the monopoly of Bitcoin’s status and achieve a market cap overtake, and who is better in terms of “freedom of contracts” and “freedom of assets” represented by the two have never stopped. But most people did not expect that this kind of counter-attack drama that came from behind would be the first to be realized in the NFT circle. On March 12, BAYC parent company Yuga Labs announced the acquisition of the IP of the CryptoPunks and Meebits NFT collections. In this regard, Larva Labs said: Our expertise is to create new things in the early stage of technology, rather than daily operations such as community management and public relations maintenance. While Yuga Labs is an innovator of the modern PFP-like NFT project model, for CryptoPunks and Meebits, it is the best way for Yuga Labs to take over the operation and give guidance. According to the market conditions of Ouyi NFT, stimulated by the news, the floor prices of CryptoPunks and Meebits rose by more than 10% and 60% respectively, and then fell slightly after cooling down.

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Regarding this news, the reaction in the market was polarized:

Supporters believe that Yuga has obvious advantages over Larva Labs in terms of operational experience and model innovation. At the same time, after CryptoPunks belongs to Yuga, it can also effectively eliminate the negative impact caused by Larva Labs’ previous salacious operation. Under the operation of Yuga, CryptoPunks will gain more room for development. In this regard, Ouyi NFT market personnel said in an interview with the media: “Larva Labs has relatively more restrictions on the commercial use of CryptoPunks, while holders of BAYC and MAYC can enjoy more commercial rights. Yuga Labs Commitment to opening up CryptoPunks and Meebits for commercial use will enhance the competitiveness of the project to a certain extent.”

Opponents believe that: Yuga itself has two major projects, BAYC and MAYC, and now it has acquired CryptoPunks and Meebits. These four projects are ranked first, second, fourth, and sixth in the NFT market value rankings, respectively. The cumulative market value even exceeds 1/3 of the total market value of NFTs. At the same time, the 7-day cumulative trading volume of these four projects also ranks among the top five in the ranking. The excessive concentration of head projects will inevitably lead to the suspicion of monopoly, and may even hit the entire industry by inhibiting innovation.

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In the post-avatar NFT era, the rookie’s counterattack

On June 9, 2017, Larva Lab, which has long been devoted to the research of generating avatars with algorithms, announced the launch of CryproPunks and gave away 9,000 of them for free. However, the originator-level project of the NFT industry that shined last year, but the response was mediocre at that time, and the progress of receiving within a week was less than 10%. It wasn’t until a journalist wrote and published an article titled “This Ethereum-based project may change our perception of digital art” that CryproPunks was swept away and avoided a bleak end.

In 2021, with the help of the Metaverse concept, NFT has experienced a three-month accumulation period and began to rise strongly, and with the joint promotion of capital, institutions, traditional enterprises and celebrities in various fields, there has been a phenomenal out of the circle. effect. According to the Ouyi research report, the cumulative transaction volume of NFT in 2021 will be 21.5 billion US dollars, a month-on-month increase of more than 20,000%, and it has developed by leaps and bounds in the fields of market value and number of users. CryproPunks has also established itself as a legend in the NFT industry in this craze sweeping the world: it has successively appeared in well-known auction houses such as Christie’s and Sotheby’s, and ushered in an explosion in August last year, and its total sales in the month soared to 680 million US dollars, an increase of nearly 400% month-on-month, and the floor price has continuously refreshed a record high. The institutions headed by the payment giant Visa, as well as celebrities such as Shawn Yue and Cai Wensheng entered the market one after another, which triggered the FOMO sentiment in the entire market, and jointly promoted CryptoPunks to become the “Bitcoin” of the NFT industry. At the end of 2021, the fourth, fifth, seventh, eighth, and ninth among the top ten NFT works unit price list are all from CryptoPunks.

The success and wealth effect of CryptoPunks have led to a large number of follow projects in the market, but due to lack of new ideas or operational failures, most of them have been reduced to failures that no one cares about, while Bored Ape Yacht Club has become an unrivaled victory By. Different from the relative randomness of CryptoPunks, BAYC’s development route is forward-looking and clear, and it attaches great importance to the planning of holder privileges. In addition, it is commendable that BAYC pays special attention to its commitment to the community, and has never been absent from its fulfillment, which has also brought a lot of praise to itself. In the end, BAYC has become a rising star who is better than the blue, and has achieved the overtake of CryptoPunks in terms of average price and total market value.BAYC is also known as the Ethereum of the NFT world.

Today, “Ethereum” in the NFT world has completed the acquisition of “Bitcoin” in the NFT world. Afterwards, the rookie counterattacked. The launch of ApeCoin leads the writing of the story to a new chapter;

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How about the market outlook of N FT ?

There is no doubt that NFT has achieved quite good results last year: not only has it achieved breakthrough development in many aspects such as sales, number of participating addresses, new projects, and application innovation. And combined with art, collection, music, games, film and television and other industries, with the endless hot spots, it continues to attract the attention of the market. As the time enters 2022, affected by the general environment, the popularity of the NFT market has declined to a certain extent. According to OKLlink data, the transaction amount of the NFT market in the past three months has shown a downward trend, with the low point and the high point shrinking by about 80%. It can also be seen from the Cryptoslam data that 90% of the top ten NFT projects have experienced varying degrees of turnover shrinkage. For some of the top-ranked projects, the single-digit transaction volume is even in the single digits.

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Although the NFT market is sluggish in the short term, the potential and prospects of NFT are unquestionable:

First of all, according to the OKX research report, the total market value of the Metaverse sector of the crypto market is below the $30 billion mark. Compared with the total market value of 16.8 trillion in the traditional game industry and traditional Internet companies, there is great room for development. . In the future, the Metaverse will be further expanded and cover all aspects of the traditional Internet, affecting social processes in various aspects such as finance, social interaction, and production relations. JayHao, CEO of Ouyi, also said: Metaverse is a transit station for Web3.0, which allows users to perceive Web3.0 in advance. It can be seen that the Metaverse is still one of the main themes of the market in the next few years, and it is the key to the next generation of Internet. Then NFT, as the secret key of the Metaverse, is destined to be an indispensable part of this digital development trend.

Second, the development of upper-layer use cases often depends on the perfection of the underlying infrastructure. In the new year, in addition to the gradual transition of Ethereum to the 2.0 stage and the transition from POW to POS mechanism, we can also see the continuous development of high-performance public chains such as OEC and Solana, bringing more possibilities to the industry sex. In addition, more and more local encryption companies have begun to increase the number of NFT ecological construction. For example: South Korean encryption platform Bithumb announced the establishment of Metaverse-related subsidiaries, Ouyi also launched MetaX last year, and is committed to creating a decentralized one-stop solution. , its NFT market has the advantages of zero handling fee, low threshold, and good interactive experience. The overweight of these leading companies can provide a stronger guarantee for the continued prosperity of the NFT ecosystem.

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At the same time, we need to pay attention, although the data on the chain shows that the NFT market has decreased in popularity. But the pace of giants and capital layout has never stopped. According to incomplete statistics: South Korean Internet giant Kakao announced that it will build an NFT distribution platform for enterprises, LG Group subsidiary will issue NFT in the cosmetics industry for the first time, SoftBank subsidiary Z Holdings plans to open NFT markets in 180 countries around the world, NBA superstar LeBron James applied for NFT-related trademarks… It can be seen that the leading companies that are more sensitive to trends and have more ability to judge the future are still increasing the NFT track. In their eyes, short-term market volatility does not affect the long-term development of potential sectors. The founder of ConsenSys also said: NFT is a far-reaching invention that can reshape the industry. Its value potential is far from reaching the ceiling. With deeper integration with more industries, NFT will usher in a new round of outbreaks.

Let’s go back to the topic of BAYC’s acquisition of CryproPunks. It is undeniable that the NFT market still has a lot of room for imagination, but avatar NFTs such as BAYC have great limitations in application. Moreover, the avatar-type NFT on the head is currently only in the hands of groups with high spending power such as celebrities, institutions and DeFi whales because of the high unit price. It has not entered the public, nor has ordinary players feel a sense of participation.Although this acquisition has greatly boosted several related projects such as BAYC, in the long run, avatar-type NFT still needs to break its own shackles, deeply integrate with other fields, and find new application directions in order to be used in Stay ahead in the future wave of NFTs. After the ecological token ApeCoin (APE) is launched, it is worth waiting to see whether more innovative gameplays can be derived and more possibilities for its ecology.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/detonated-the-nft-market-bayc-launched-the-token-apecoin-after-acquiring-cryptopunks/
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