The transaction volume exceeds 100 million US dollars? How is Boring Ape NFT commercialized?

The transaction volume exceeds 100 million US dollars? How is Boring Ape NFT commercialized?

NFT (Non-Fungible Token, refers to non-fungible token) is a kind of digital asset. In 2021, well-known NFT projects such as Cypherpunk and Bored Ape, a single NFT can be sold for tens of thousands to hundreds of thousands of dollars. Including stars Jay Z and Eminem, well-known NBA superstar Shaquille O’Neal, etc. have purchased NFT.

What is the story of the commercialization and development of NFT? People are keen to buy “pictures”, what is it for? These are some of the questions that this article attempts to explore.

Structure of this paper

What is Bored Ape? Bored Ape

Which celebrities have bought Bored Ape?

How did Bored Ape become popular? What is the focus of the business model?

  • How do users perceive it?
  • Entrepreneurship
  • NFT commercial project features
  • Features of Bored Ape
  • what people are buying
  • voice from user

What’s wrong with NFT projects?

What is the Bored Ape?

In May 2021, everyone began to notice a phenomenon. Many people’s Twitter avatars were replaced by golden apes, monkeys with glowing eyes, and monkeys in colorful clothes. These monkeys are from the Bored Ape Yacht Club (Bored Ape Yacht Club) pictured below

The transaction volume exceeds 100 million US dollars? How is Boring Ape NFT commercialized?

Image source: Sotheby’s official website

BAYC (Bored Ape Yacht Club) is an NFT (Digital Collection) project launched in April 2021, including 10,000 unique styles of ape Bored Ape, each ape has different dresses and shapes, and the boring ape NFT can be used as a yacht Club membership. When it first launched, the single price of the boring ape was only $185, and it sold out immediately after its release, and it attracted a large number of celebrities.

Which celebrities have bought Bored Ape?

Well-known Canadian singer Justin Bieber spent $1.29 million (500 ETH) and 500 ETH to buy a Boring Ape NFT.

The transaction volume exceeds 100 million US dollars? How is Boring Ape NFT commercialized?

In November 2021, the famous American TV host Jimmy Fallon purchased a boring ape NFT wearing a striped T-shirt and heart-shaped sunglasses for nearly $220,000;

Recently, well-known rapper Eminem bought a boring ape for $462,000;

NBA stars Curry and O’Neal, both owners of Bored Ape;

The transaction volume exceeds 100 million US dollars? How is Boring Ape NFT commercialized?

O’Neal’s Mutant Ape Yacht Club NFT

How did Bored Ape become popular?

  • What is the focus of the business model?

Yacht Club’s first batch of NFT revenue exceeded 2 million US dollars, and then the transaction volume of Bored Ape exceeded 100 million US dollars. The success of the Bored Ape project inspired the market to pursue NFTs, and then the market launched a variety of NFTs, encrypted Fans and collectors can choose to buy various NFTs according to their hobbies.

From the perspective of the main publicity venues, the main publicity venue for NFTs is Twitter, and the promotion of various celebrities and KOLs will further increase fans’ attention to NFTs. It can be clearly seen that consensus is very powerful in the market, and when everyone participates in the same game, it will create a powerful force.

The Yacht Club founder believes that this sense of community participation and belonging has always been missing on the Internet, and NFTs can help fill that void . Bored Apes can become people’s digital identities, it’s not just a collectible that doesn’t hang on the wall or on a shelf, but is displayed on your avatar picture, a symbol of the user’s self.

In the Discord community, fans and NFT owners are active on the Discord server of the Bored Ape Yacht Club. The discussion and mutual social network on social networks have formed an invisible connection between club members in the wider Internet.

  • User’s point of view

“I pay my rent by trading jpeg pictures (referring to NFTs) on the Internet ,” said the London-based head of Electric Artefacts, a company that regularly follows the NFT market .

The CEO of XMTP bought four unpretentious and boring apes, and he believes that having an ape NFT has become a kind of status symbol, a bit like wearing a high-end watch or rare sneakers.

Artamonovskaja, founder of Electric Artefacts, believes that the success of the Bored Ape Yacht Club is due to its friendly price and relatively easy availability.

  • Entrepreneurship

The two founders of Yachat, Gargamel and Gordon Goner, are both in their thirties, and their experiences are quite rough. Before starting Yachat Club, Gargamel was an editor, and Gordon Goner wanted to take a MA program, but fell ill , turned to cryptocurrency trading. Gargamel himself is a nerdy figure, with wire-frame glasses and a goatee. The two grew up in Miami, USA, and met while drinking.

Before Gargamel and Goner started their business, they also researched CryptoPunks. CryptoPunks can sell for hundreds of thousands of dollars each. Some celebrities, including musician Jay-Z, use them as avatars. Owning CryptoPunks is like owning one in the NFT world. Harvard degree.

The transaction volume exceeds 100 million US dollars? How is Boring Ape NFT commercialized?

  • Characteristics of NFT business projects

The two NFT projects, CryptoPunks and Bored Ape, are completely closed systems. The number of NFTs issued is fixed (limited number), and the founders follow their commitments. Beyond the initial limited number of releases, there will be no new NFTs.

Bored Ape founders Gargamel and Goner discovered business opportunities by researching CryptoPunks. The early idea of ​​the two was to make a set of CryptoCuties, similar to a set of NFT-type “girlfriends”, and the idea was to make a set of shared canvases, anyone Everyone can draw on it, but the founders worried that everyone would doodle on the shared canvas, and gradually dispelled these ideas.

  • Features of Bored Ape

Before the introduction of the Bored Ape project, most projects tended to be low-resolution and pixelated images. If you just take the style of painting as an example, compared with the fine painting style of the boring ape, the pixel painting is still slightly ordinary . Bored Ape’s imagery is more refined, and the Yacht Club idea comes from the founder’s deep infection of 80’s hardcore, punk rock, 90’s hip-hop, a representation of bar culture, from Doomsday on the website From the bar scene to the hilarious style of the monkeys themselves.

The Boring Ape Yacht Club is more like a game 3A masterpiece, not just an isolated NFT combination. Sophisticated visuals, subculture-inspired fashion, and literary qualities make the universe of the Boring Ape a hidden, yet appealing, cultural manifestation.

Gargamel and Gordon Goner brought in two programmers, No Sass and Emperor Tomato Ketchup, who were mainly responsible for blockchain engineering. The investment in hiring an illustrator accounts for most of the upfront cost (about $40,000). As with many NFT avatar-type clubs, the cartoon apes are then fed into an algorithmic program that randomly generates thousands of images with unique body, head, hat, and clothing combinations, like a digitally dressed Barbie baby.

Certain unique features: special hair, laser eyes, robes, only appear on a random few people, making apes with these rare features more popular and therefore more valuable in the secondary market.

Each picture is hidden until the original collector pays, so buying one is a bit like playing a slot machine, or drawing a blind box. If you get a hidden ape, you can get a huge profit by reselling it again. In some cases, some crypto enthusiasts will buy hundreds of NFTs each. Then sell their hoarded NFTs when the price rises, but new collectors must be guaranteed for previous collectors to profit.

What are people buying?

Just a day after launch, all 10,000 copies of the “Bored App” were sold out. On May 3, 2021, the ape on OpenSea rose to $1,700. A lot of people are afraid of missing out, it’s a human fear of missing out and missing out.

Each NFT is actually a unique symbol. Usually represents a threshold online community, a stock research group, or an art appreciation society. When an NFT is bought at a high price, the perceived value of all other NFTs in the set goes up, just as a painting that sells for a record price at auction increases the value of all of the artist’s works . When buyers turn their social network avatars into new NFT pictures, it represents loyalty and a signal – other buyers of the club, come and pay attention.

But rarity isn’t the only reason people pay millions for apes. In addition to having unique avatars, people can also gain access to exclusive membership clubs through this NFT. This puts them in the inner circle of the elite, giving them status and more opportunities for profit.

Some users think, “No one could afford CryptoPunk at that time,”. As such, the Bored Ape seems to be the next best thing to buy as a cool avatar at a relatively reasonable price.”

Artamonovskaja bought an ape for about $1,500 shortly after the Bored Ape launched, and now the same monkey (wearing a Bored Ape Yacht Club-branded baseball cap with a pop punk vibe) sells for ten times the purchase price

Problems with NFT projects

Of course, in addition to the great success of a small number of NFT projects, there are also a large number of NFT projects that have failed, or there will be no secondary market at all. In the NFT world, there will also be scams, and some NFT projects will have the project party run away with the money.

“Do you think NFTs will become a trend? What characteristics of NFT business models can be successful?”

Thank you for your continued support, and I wish you all a prosperous and prosperous Year of the Tiger!

references:

1. https://www.newyorker.com/culture/infinite-scroll/why-bored-ape-avatars-are-taking-over-twitter

2. https://cointelegraph.com/news/bored-ape-yacht-club-is-a-huge-mainstream-hit-but-is-wall-street-ready-for-nfts

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-transaction-volume-exceeds-100-million-us-dollars-how-is-boring-ape-nft-commercialized/
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