Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

If someone asks you to pay hundreds of thousands of dollars for a “cartoon picture,” you’re bound to think he’s a liar.

But in the NFT market, such transactions happen almost every day. In this blockchain-based digital world, the decisive factor of value is not the NFT itself, but the consensus of the participants.

The “Boring Ape (BAYC)” NFT that is currently popular all over the world is undoubtedly a typical representative. Since its birth in April last year, the Boring Ape NFT has been sought after by many domestic and foreign celebrities, and superstars such as Curry, O’Neal, Justin Bieber, and Jay Chou have bought it.

As of May 6, the floor price (the lowest price in the market) of the “Boring Ape” series of NFTs has risen from 0.08 ETH to 147 ETH (about 420,000 US dollars), an increase of 1837 times in just over a year.

And now, this menacing “ape universe” wind has also hit Chinese companies and investors.

Before and after the “May 1st”, investors such as Zhu Xiaohu, Cai Wensheng, Lin Jiapeng, and listed companies Greenland Group, Beichuan, Li Ning and other companies all announced the purchase of Boring Ape NFT.

Are Chinese companies and investors entering the market, following the trend and hyping or seeing the potential value behind the “boring ape” NFT? Will the big guys also be charged an “IQ tax”?

Jiang Zhaosheng, a senior researcher at Ouke Cloud Chain Research Institute, told Phoenix.com’s “Eye of the Storm”:“There is indeed a possibility to follow the trend, but more likely to be optimistic about this track. Because they have been in the investment field for so many years, there is a clear self-awareness and judgment, will not do some blindly follow the trend.”

In fact, behind the popularity of “Boring Ape” is the continued popularity of NFTs around the world. The latest statistics show that the global NFT sales in 2021 have exceeded 17 billion US dollars, while in 2020 only 82 million US dollars, an increase of about 210 times.

In the exploration of NFT, domestic enterprises are not far behind. Fenghuang.com’s “Eye of the Storm” learned that at present, Internet companies such as Ali, Tencent, JD.com, and Bilibili, as well as some small and medium-sized enterprises, have launched various digital collections and digital artworks similar to NFTs.

It should be noted that the current domestic NFT and digital collection markets are still mixed. While enriching the digital economy model and promoting the development of the cultural and creative industries, there are also risks and hidden dangers such as speculation, money laundering, and illegal financial activities.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

The “boring ape” NFT of the trading interface (Image source: OpenSea)

01. Being “a monkey” by FOMO companies and bigwigs

Following international superstars such as Stephen Curry and Justin Bieber, Chinese companies and investors are also being subjected to “a monkey” FOMO (FOMO is a blockchain industry term, referring to a fear of missing out).

On May 1st, Cai Wensheng, the founder of Meitu, posted in a circle of friends: “I was FOMO and couldn’t help buying BAYC#8848 (that is, the Boring Ape NFT) for this Otherdeed#8848 land.”

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

The day before Cai Wensheng bought it, Zhu Xiaohu, a well-known investor, also spent $500,000 to buy a boring ape NFT.

On April 30, according to OpenSea data, an address named “allenzhu.eth” bought the “BAYC #9279” serial number Boring Ape at a price of 170 ETH (about $500,000), and Jinshajiang Venture Capital Management The English name of partner Zhu Xiaohu is Allen Zhu. It is reported that Zhu Xiaohu’s latest WeChat avatar has also been updated to “BAYC#9279” avatar.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

Suspected transaction records of Zhu Xiaohu (Image source: OpenSea)

On May 2, LinkVC founder Lin Jiapeng and Tongzhou Capital founding partner Zhang Liaoliao also purchased the Boring Ape BAYC #4051 and BAYC #1581 series of NFTs for 130 ETH (about $400,000) and 133 ETH respectively.

In addition to investors, listed companies such as Li Ning, Greenland, and Beichuan have also joined the upsurge of buying “Boring Ape” NFTs.

On April 30th, the smart massager brand “Beichan” purchased BAYC Boring Ape #1365 for 179 ETH. The official said: 1365 number has a special meaning for Beichuan. We look forward to everyone going to bed early every day, 365 days a year.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

On April 29th, the official account of Greenland Group announced that it had purchased Boring Ape BAYC #8302, and based on this, it launched the NFT image Boring Ape BAYC #8302, which symbolizes Greenland Group’s digital strategy.

According to reports, the meaning of the number 8302 is: 8 is a homonym for “ba”, 30 represents the 30th anniversary of the establishment of Greenland Group, and 2 means that it is the starting point for the second venture of Greenland.

Greenland Group said that in the future, it will build Greenland G-World, through VR and AR technology, to open up virtual and reality, to achieve online and offline scene interoperability.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

Li Ning Group has cooperated with “Boring Ape” earlier and released related products. On April 21st, China Lining announced that it has reached a cooperation with the non-fungible token (NFT) numbered #4102 of the Bored Ape Yacht Club to sell the “China Lining Bored Ape Trend Sports Club” series of products.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

If it shows that Xinghe investors buy the boring ape NFT out of curiosity, collection, and personal behavior, why do listed companies with strict financial audits spend millions of yuan to buy the boring ape NFT?

Zhou Xinjian, executive vice president of Nuwa NVWA digital collection e-commerce platform, told Phoenix.com’s “Eye of the Storm”: “This is a manifestation of traditional enterprises actively embracing new technologies and new things. For traditional enterprises and investors, if they want to understand NFT, The best way to get involved with these new concepts of the Metaverse is to get involved.”

Jiang Zhaosheng believes that the purchase of boring ape NFT by traditional companies such as Li Ning and Greenland is not a whim. In fact, this can bring them a lot of benefits. “First of all, we can market to young people through the technology trends that young people are more concerned about, such as NFT and Metaverse.”

“Secondly, you can use the IP of the Boring Ape NFT for commercial development. Because as long as you buy this NFT, you can use this NFT to do a series of peripheral and commercial operations, and the ownership and commercial operation rights are all yours, no Time limit. This is very different from the previous traditional IP cooperation method.” Jiang Zhaosheng said to Phoenix.com’s “Eye of the Storm”.

“Eye of the Storm” on Phoenix.com learned that on April 28, the giant pixelated sculpture #4102 of Boring Ape landed in the Li Ning Sanlitun store in Beijing, and participated in the pop-up event with the theme of “boring is not boring” in the Sanlitun store as the agent manager. . At the same time, Li Ning also launched a series of “boring ape” patterned clothing.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

Li Ning Sanlitun pop-up store (Image source: Twitter)

In addition, Jiang Zhaosheng also pointed out that it does not rule out the possibility that companies such as Li Ning, Greenland, and Beichuan are deploying the Metaverse in advance. Because before and after they bought the boring ape NFT, the company behind “boring ape” also launched the Metaverse game Otherdeed for Otherside (monkey land).

“Eye of the Storm” on Phoenix.com has learned that since this year, Geng Jing, executive president of Greenland Group, chairman and president of Greenland Jinchuang, and chairman of Greenland Digital, has mentioned Metaverse many times.

On March 1, Greenland Gold Creation issued a document stating that on the occasion of the 30th anniversary of the establishment of Greenland Group, Greenland Gold Creation, as an important carrier of Greenland’s digital transformation, will make every effort to create a symbiotic greenland Metaverse G-WORLD, and grandly launch the 30th anniversary. Celebration Series Digital Collection!

In fact, before companies and investors entered the market, some stars and singers in the entertainment industry had become players of “Boring Ape” NFT or other NFTs earlier.

According to media reports, Jay Chou once owned a “boring ape” NFT worth about $500,000, but it was later stolen. In addition to “Boring Ape”, Jay Chou also owns Phanta Bear (Phantom Bear) NFT.

On December 31, 2018, Jay Chou and Kun Ling posted the NFT image of Phanta Bear (Phantom Bear) on social platforms respectively. Jay Chou said in the caption under the picture that this was “the first special gift my brother received”. .

According to some media reports, the founder of the parent company behind the main body of the “Phantom Bear” NFT issuer’s income is Jay Chou’s good friend, the current “fitness coach” Liu Genghong.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

The sales page of Jay Chou NFT project on the OpenSea platform

Lin Junjie also purchased the “Boring Ape” NFT and used it as the avatar of his social account. In addition to buying NFT avatars, JJ Lin also publicly announced on social networking sites that he bought three virtual lands on Decentraland at a cost of about $123,000, or about RMB 783,500.

In foreign countries, the “boring ape” NFT has been highly sought after by football stars and singers since its birth.According to incomplete statistics from “Eye of the Storm” on Phoenix.com, so far, at least 28 celebrities, including NBA star Stephen Curry, well-known pop star Justin Bieber and billionaire Mark Cuban, have purchased the “Eye of the Storm”. Boring Ape” NFT.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

(Image credit: BOARDROOM) 

02. The price has doubled 1,800 times a year. What is the origin of the “boring ape”

So, what is the origin of the “boring ape” NFT? Why is it sought after by so many celebrities and bigwigs?

Phoenix.com “Eye of the Storm” learned that BAYC (Bored Ape Yacht Club), or “Bored Ape Yacht Club”, is an NFT project launched by Yuga Labs, a Web3 startup in the United States, in April 2021.

The BAYC ecology includes 10,000 unique style boring ape NFT avatars, each ape has a different dress and shape. The Boring Ape NFT can be used as a membership of the yacht club, and can also get member-specific benefits.

When it was first launched, a single “Boring Ape” NFT sold for as little as 0.08 ether (ETH), which was worth about $190 at the time. All 10,000 NFTs were sold within a week, forcing latecomers to buy Boring Ape on NFT platforms such as OpenSea.

Later, the price of the Boring Ape series of NFTs soared as famous celebrities such as Justin Bieber, Eminem, Paris Hilton, Snoop Dogg and Post Malone posted their own Boring Ape avatars.

According to NFTGo.io data, on April 27, the floor price of Boring Ape NFT (the lowest price in the market) hit 147 ETH (about $420,000), a record high. Compared with the price of 0.08 ETH when it was just launched, the price has increased by 1837 times in just one year.

However, after the popularity has passed, the price of “Boring Ape” NFT has dropped a lot. As of May 9, the floor price of the “Boring Ape” NFT was 89.7 ETH (about $287,000), which has dropped by about 38.77% from the high point.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

In addition to NFTs, BAYC parent company Yuga Labs has also launched related digital tokens and Metaverse games.

Otherdeed for Otherside (monkey land) mentioned in Cai Wensheng’s circle of friends is a Metaverse game world developed by Yuga Labs and NFT game publisher Animoca Brands that summarizes various NFT projects.

On April 30, Yuga Labs announced that it will launch a new NFT designed specifically for the game, “Otherdeed,” which will serve as a token for some kind of virtual land in the Metaverse game Otherside. Otherdeeds will be sold to the public and will also be available to existing Boring Ape BAYC and Mutant Ape MAYC owners.

According to the “Otherdeed” release rules, companies that have recently purchased BAYC, such as Zhu Xiaohu, Cai Wensheng, Li Ning, and Greenland, can also get Otherside (monkey land) in the Metaverse. Therefore, some people think that they are also preparing for the layout of the Metaverse by purchasing the boring ape NFT.

At the same time, the transaction volume of the Boring Ape NFT has continued to hit new highs. The latest data shows that as of May 4, the total transaction volume of “Boring Ape” NFT has exceeded 2 billion US dollars, setting a record high, becoming the third NFT series with a transaction value of more than 2 billion US dollars.

The historical transaction data shows that the total transaction volume of BAYC exceeded 1 billion US dollars on January 4 and exceeded 1.5 billion US dollars on March 18, which means that the transaction volume of this NFT series has doubled in four months.

The success of the “Boring Ape” NFT has also made its parent company Yuga Labs favored by investment institutions. On March 23, Yuga Labs completed a $450 million financing at a valuation of $4 billion, led by A16z, with participation from Animoca Brands, LionTree, Sound Ventures, Thrive Capital, FTX, MoonPay and other institutions.

It’s hard to imagine that Yuga Labs, now valued at $4 billion, was a small, obscure company with only 4 founding employees and little attention a year ago.

The two founders of Yuga Labs have given anonymous interviews to media such as Rolling Stone and The New Yorker to discuss the origin story of BAYC. In interviews, they talked about being in their 30s, having met growing up in Florida, and having literary ambitions.

They are all interested in the crypto industry and want to create some kind of NFT family. Later, they came up with the concept of a rich ape living in a swamp clubhouse, hired a freelance illustrator to draw the image of the boring ape, and worked with two engineers as co-founders to run the NFT series.

03. One million at a time, is NFT an “intelligence quotient tax”?

Behind the popularity of “Boring Ape” NFTs is the continued popularity of the entire NFT industry.

Nonfungible website and market consulting company L’Atelier released a report that NFT sales will reach $17.6 billion in 2021, and only $82 million in 2020, an increase of about 210 times.

Statistics show that the number of cryptocurrency wallets belonging to NFT users (those who hold or trade NFTs) in 2021 has exceeded 2.5 million, compared to only 89,000 a year ago. The number of buyers increased from 75,000 to 2.3 million.

The full name of NFT in English is Non-Fungible Token, which is translated into Chinese as “non-fungible token”, which is indivisible, irreplaceable, and unique.

The concept of NFT is nothing new, but it is due to the participation of large art auction houses and influential artists since the epidemic.

On March 12, 2021, Beeple’s work “Every Day: The First Five Thousand Days”, an online artist born in the 1980s, was made into NFT by Christie’s, a famous art auction house, and sold for a sky-high price of $69.3 million.

On April 16 last year, Edward Snowden, the protagonist of Prism Gate, made a court judgment covered with his own portrait into an NFT, auctioned it online for a sky-high price of $5.4 million, and donated the auction proceeds to the FPF Foundation .

In August last year, a “pixel avatar” NFT was sold for a sky-high price of nearly 100 million US dollars. The Block reported that an NFT work that is being auctioned, “CryptoPunk 3100”, has an offer of 35,000 ETH, or about $90.5 million.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

The sky-high price CryptoPunk 3100 was auctioned (Source: Larva Labs)

In the opinion of some industry insiders, “everything can be NFT”. The significance of NF is to make those things that can be seen everywhere in life endowed with “uniqueness”, thereby producing “artistic” and “transactional value”.

A typical example is that in January this year, a man from Indonesia sold his selfie photos in front of the computer every day between the ages of 17 and 21 into a series of NFTs called “Ghozali Everyday”, which turned out to be sold for $630,000.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

Ghozali Everyday Collection (Image credit: OpenSea)

This kind of business that makes ordinary people say “I don’t understand, but I’m shocked” has been staged repeatedly since last year. For these sky-high NFT works, many people think it is “IQ tax”.

Many people also question the so-called “irreplaceability” of NFTs. On May 4, Tesla CEO Elon Musk briefly changed his Twitter avatar to BAYC series NFT (boring ape), this avatar contains 107 “boring ape” patterns.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

At the same time, Musk tweeted, joking about the irreplaceable nature of NFTs, saying: “I don’t know…it seems kind of fungible.” Soon after, Musk changed his avatar.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

Shortly after Musk changed his avatar, Michael Bouhanna, vice president of the well-known auction house Sotheby’s, shouted to Musk on social media, hoping that he would delete the avatar image he used or publish it after obtaining the authorization of the original buyer.

So, are these NFT pictures that seem to be the same as the avatars we download online, are they IQ taxes?

Jiang Zhaosheng told Phoenix.com’s “Eye of the Storm”: “Because NFT itself is also a kind of data, most of which are operated and governed by the community, so its value or price is still determined by the consensus of the community, which is in our traditional sense. There’s still a big difference in value determining price.”

Regarding the question of NFT’s “non-homogenization”, Jiang Zhaosheng pointed out that from a technical point of view, NFT must have the characteristics of non-homogenization, and technology can indeed endow NFT with uniqueness, such as unique identification code, Tracking and other such features. But in actual operation, it may produce some artificial uncontrollable factors away from the technical characteristics.

“For example, using other people’s NFTs as their own avatars or private transactions through screenshots, downloads, etc. actually constitutes infringement. But the industry is still in its infancy, and the relevant laws and regulations are still incomplete, and it is difficult to legally define The copyright and ownership of NFTs, in the current regulatory environment, the laws in the real world still conflict with the rules in the NFT world.” Jiang Zhaosheng said.

Zhou Xinjian believes that it is normal to have doubts. At present, the development of the entire industry is still in a very early stage, not only users, but also the industry’s identification of NFT value is not mature enough. Some NFT projects will have a certain bubble, but there are also projects that can run out, and they will attract most of the attention and funds.And the current level of NFT bubble is much lower than that of the Internet bubble.

04. Big companies such as BAT are doing it. What is the difference between digital collections and NFTs?

In China, NFTs appear more in the form of “digital collections” and “digital artworks”.

In early August 2021, Tencent launched the digital collection platform “Magic Core”; in early June 2021, Ant Group launched the digital collection platform “Whale Scout”; on December 17, 2021, JD.com launched the “Lingxi” digital collection trading platform; 2022 In March of this year, Baidu launched the “Super Chain” digital collection trading platform…

According to the incomplete statistics of “Eye of the Storm” on Phoenix.com, as of now, at least 10 domestic Internet companies have deployed digital collection platforms, including Ali, Tencent, NetEase, Ant Group, JD.com, Baidu, Xiaohongshu, Station B, Bytes beating etc.

Priced at one million, Zhu Xiaohu and Jay Chou are buying Boring Ape NFTs. Why do they attract big guys?

Ali’s Whale Quest digital collection trading platform

So, what is the difference between domestic digital collections, digital artworks and foreign NFTs? Jiang Zhaosheng told Phoenix.com’s “Eye of the Storm”: “In fact, there is no essential difference in technology between digital collections and NFTs. They are both based on the technology of blockchain, but one is a consortium chain and the other is a public chain.”

Jiang Zhaosheng pointed out that the biggest difference between digital collections and foreign NFTs is the transaction level. Foreign NFTs are generally built on public chains such as Ethereum, and can be traded on the secondary market through virtual currency, with strong financial attributes. The domestic digital collections are basically built on the alliance chain, do not support secondary transactions, are generally used for collection or transfer, and the financial attributes are weak.

Jiang Zhaosheng believes that digital collections on the alliance chain and NFTs on the public chain have their own advantages and disadvantages. The consortium chain is relatively safer, with few hype, money laundering and other phenomena, but it belongs to a slightly closed “seller’s market” and is dominated by the platform; while the public chain NFT is more open, users can independently cast their own NFT, and can Unlimited circulation transactions, but the disadvantage is that it is prone to theft, money laundering, speculation, illegal fundraising and other phenomena.

Jiang Zhaosheng and Zhou Xinjian both believe that both NFT and digital collections are not isolated, but closely related to the Metaverse and Web3.

Zhou Xinjian said that NFT is a part of the Metaverse industry, a ladder for the further digitization of the economy (the further evolution of the Internet), and its impact on the current Internet economy may be revolutionary. It is difficult for NFTs to exist apart from the Metaverse industry and the soil of Web3. They should not be just a category of commodities and investment products. As an important part of the new technology industry, they need to keep pace with the times and innovate continuously.

Jiang Zhaosheng prefers to regard NFT as a new type of value carrier for multiple types of assets in the future Metaverse.He believes that virtual real estate and virtual items in the Metaverse can actually be turned into NFTs.

“At present, there may be a situation where traditional enterprises are deploying, first buy NFTs to see how it works, and try to commercialize some IPs through some existing NFTs, for the future layout of the Metaverse. Some forward-looking practices.” Jiang Zhaosheng said.

Fenghuang.com’s “Eye of the Storm” learned that in addition to Li Ning, Greenland, and Beihang, currently Starbucks, Yum, Burger King, Hyundai Motor, SAIC Roewe and other traditional consumer brands and traditional car companies have also begun to test the waters of NFT.

However, it should be noted that as the domestic NFT market continues to heat up, a lot of chaos has also begun to appear, and the voice for the development of industry norms is getting louder and louder.

On April 13, China Internet Finance Association, China Banking Association, and China Securities Association jointly called on member units to jointly launch an initiative to prevent financial risks related to NFTs (non-fungible tokens), and resolutely curb the financialization of NFTs. Tendency to strictly prevent the risk of illegal financial activities.

Xia Hailong, a lawyer from Shanghai Shenlun Law Firm, told Phoenix.com’s “Eye of the Storm”: “The biggest challenge to the development of NFTs in China comes from the temptation of illegal profits in the early stage of the industry’s development. NFTs can easily achieve standardization, equal differentiation and other securities functions, while some Enthusiastic users have been boosting their liquidity. Therefore, a little carelessness can easily be used to engage in illegal and criminal activities such as illegally absorbing public deposits, issuing securities without authorization, and organizing pyramid schemes.”

Zhang Xuefeng, a financial commentator, also told Phoenix.com’s “Eye of the Storm”: “When a new concept emerges, it can easily become a tool for criminals to illegally raise funds, illegally absorb public deposits or hype in the securities market, such as blockchain. , Metaverse, NFT, etc. At the same time, there will also be a lot of hyped ‘concept stocks’ in the capital market.”

Jiang Zhaosheng pointed out that as an individual investor, if you want to buy digital collections or NFTs, you must first understand the basic situation before investing, and do not blindly follow the trend. And try to choose such platforms with strong endorsement and strong technical support to avoid being deceived.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/priced-at-one-million-zhu-xiaohu-and-jay-chou-are-buying-boring-ape-nfts-why-do-they-attract-big-guys/
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