What kind of changes will BAYC lead the NFT circle?

Recently, the news of Bored Ape Yacht Club (BAYC) issuing coins can be described as a heavy headline in the industry. For a time, the ace project that has been continuously introduced and new has once again attracted the unanimous attention of the crypto community.

On March 17, BAYC announced the official launch of its native token, ApeCoin, and airdropped 15% of the total supply to BAYC/MAYC NFT holders. The BAYC team stated that ApeCoin will be available to everyone and is expected to start listing on major mainstream crypto exchanges as soon as possible. At the same time, major exchanges are also rushing to go online in the first time.

As an old-fashioned evergreen project in the NFT field, BAYC ‘s coin issuance has not only gained the favor of some capital companies, but has also been criticized by some investors who are obsessed with the artistry of NFT. BAYC’s issuance of coins also brings us more thinking, that is, although there are many tracks in the NFT field, will they all be summed up on the same roadmap in the future, and will they all lead to the ultimate path of the Metaverse?

What potential tracks are there in the NFT field?

In fact, the origin of NFT development can be traced back to 2014. At that time, the meme Sad Frog NFT application released by Counterparty opened up people’s imagination for the concept of NFT for the first time. Later, with the rise of Ethereum, some NFT concept projects began to grow on it, which attracted some enterprises and capital to continuously enter NFT. The era of “everything can be NFT” has also begun.

With the further development of the DeFi economy, the total market value of the crypto industry has also begun to soar, reaching $3 trillion at one point, and the market value of NFTs has exceeded $15 billion, accounting for about 1% of the digital asset market. Among them, avatar NFT accounts for the largest proportion, with a market value of up to 8 billion US dollars. Gaming, art, and collectible NFTs are close behind, with market caps ranging between $2.3 billion and $3.3 billion.

Since last year, with the popularity of AxieInfinity, the NFT ecology has spawned GameFi’s new Play To Earn economic model, and has also derived a series of tracks such as SocialFi and NFT Swap. After the digital asset market was immersed in the bear market period, more investors began to turn to the NFT field to find potential value investments.

NFT avatar class track

An NFT avatar is usually an image of a character used as a digital profile picture. The vast majority of NFT avatars are unique, with varying scarcity. With the needs of the market, many NFT avatar projects have been given many other functions to add more application scenarios to NFT.

Although avatar NFT accounts for the largest proportion in the NFT field, its market is still relatively small. It is understood that many projects have 10,000 issuances, but only 2,000 to 4,000 independent owners. But despite this, the demand market for NFT avatars is still expanding.

On March 12, Yuga Labs, the parent company of BAYC, announced that it has acquired the IP of the CryptoPunks and Meebits NFT collections from Larva Labs, and will soon grant CryptoPunks and Meebits holders the same commercial rights as BAYC and MAYC holders. As soon as this news came out, the floor price of Meebits soared by 60% to 6.5ETH. The transaction volume of CryptoPunks has increased significantly, and the floor price has also begun to rise, rising by 11.3% to 74.79 ETH.

As a milestone in the NFT industry, CryptoPunks has always been considered the “Bitcoin” of the NFT field.Therefore, some people in the community also joked that this is the NFT’s “Ethereum” that acquired “Bitcoin”, and the other party also gave a “Litecoin”. However, in the current market environment, various NFT ecosystems and chain games are emerging, and the development of avatar NFTs has become less popular than before, and it seems that it has entered an era of “post-avatar NFTs”.

Looking back at the popularity of avatar-type NFTs, it is nothing more than the boom driven by the star effect, which has not really entered the field of vision of the general public. And the blue ocean value behind it has not been discovered. After social media is confirmed, it makes it more like a game for the rich, and ordinary people are unable to participate and have no interest in participating. Therefore, it is imperative that the “de-gentrification” of avatar-type NFTs is urgent and even more pressing.

NFT game track

Among the many tracks in the NFT field, the game NFT category is the fastest growing segment of the NFT market. Since May last year, the popularity of Play To Earn games has continued to promote the development of chain games. GameFi has also ushered in the enthusiastic pursuit of the market, and it has also set off an upsurge of public interest in the Metaverse, making the Metaverse successfully out of the circle. .

Coincidentally, there are still many doubts about the NFT game track. Players of games in the NFT gaming market are by far the largest source of funding. Most blockchain games will require players to purchase in-game items, and developers typically charge a small fee for each transaction.

Tim Morten, co-founder of Frost Giant Studio, once said that the danger of this model is close to a “pyramid scheme”. Blockchain games using this model are healthy when their popularity increases, but run into trouble after they peak. Declining interest in games means lower valuations of game tokens, which leads to a decline in player revenue, which further reduces the game’s popularity. It’s a vicious circle. In fact, as far as the future development of chain games is concerned, it still has great potential, but if you just do the NFT ecology of games, you will be eliminated.

NFT social track

Based on the development of AI, the Play-to-earn mode is gradually changing to the Create-to-earn mode.The Create-to-earn mode, which brings new services to players through virtual creation, is mainly realized by creators providing value-added services to players. Creators gain real-world benefits by being able to create virtual reality. Under the economic incentives, the creation of users is stimulated, which is dominated by player creation, bringing immersive experience and social scenes, and this is also the most basic construction for building the Metaverse.

In the probability of Web 3.0, we reorganize the world into encrypted networks, the global Internet community is now capable of owning digital assets, and forming a new asset class in the emerging market encrypted cloud economy that users own and control. And NFT social officially builds the key to its low base.Imagine, if the NFT chain game adds its social empowerment, so that different chain games can recognize the entry of the same type of community NFT, and truly realize the intercommunication between various ecosystems, and this also forms the most basic prototype of the Metaverse. .

Does BAYC issue currency change the status quo of NFT development?

Although the issuance of BAYC has attracted strong attention from the market, it has also led to some thinking, that is, whether some NFTs that are limited to artistry and can be exchanged and face elimination from the market can only be reversed by developing ecology. The essence of NFT is whether it should tell a good story, or go with the flow and cater to the taste of the public.

Let’s discuss first, what is the motive for BAYC’s currency issuance?

Yuga Labs’ Road to Metaverse

BAYC is a universe and exclusive club focused on creating an NFT behind. With games like Mutant Arcade, charity events, and club perks, BAYC has kept up the hype and relatively high reserve prices. While the success formula used by BAYC is familiar, it continues to try to push the existing boundaries of NFTs.However, the reason for its currency issuance is still to be found in the strategic layout of its parent company.

Yuga Labs, the parent company of BAYC, is actually very good at operating and developing PFP projects and its community ecology, and the acquisition of star NFT IPs such as CryptoPunks and Meebits is just a microcosm of Yuga Labs’ business operation capabilities. As the gameplay of PFP-like NFTs has gradually become well known to the public, Yuga Labs has also begun its more ambitious plans.

In a joint announcement by Yuga Labs on March 12, Yuga said it was building a game-centric Metaverse called “MetaRPG,” with BAYC at the center of that universe. Yuga plans to expand the world of BAYC and invite people other than ape avatars to join. ApeCoin will be the economic system currency of this ape Metaverse.

Does it make sense for BAYC to issue coins?

The news of BAYC issuing coins has also attracted the attention of well-known people in the circle. Buterin criticized BAYC as a form of gambling in his “Time” article, and he hopes that Ethereum will become a launching platform for various socio-political experiments that can counteract authoritarian governments and subvert Silicon Valley’s shackles of digital life.

Buterin said: “If we don’t have a voice, the only things that can be built are those that are immediately profitable. One of my decisions in 2022 is to try to be more risky and less neutral. I’d rather Ethereum Offend some people and don’t want to be a meaningless thing.”

Of course, it’s not just V God, but many investors in the circle are not optimistic, thinking that its currency issuance violates the original purpose of NFT, and a good NFT should think about how to build its story and deepen the underlying value accumulation . At this stage, the concept of the Metaverse has not yet been formed, and it is too early to issue coins, which will only consume its own value in advance.

But in fact, whether BAYC’s currency issuance is meaningless, or whether its value is consumed in advance, we can leave it to time to judge, and what we can see at this stage is that BAYC’s currency issuance has successfully attracted some capital. favor, which will help its future development.

In fact, compared to DeFi, NFT entrepreneurs are novices who may not have a technical background or a lot of knowledge reserves. However, it has become a top-down development, and its large number of exits has successfully led many people who have no blockchain concept at all, or even no background in encrypted assets, to enter this circle. At this stage, the development of NFTs has also become diversified, and it has become a trend that some NFT projects with single value empowerment are eliminated.

With the issuance of BAYC, I believe that the current NFT market has begun to move, and they are planning strategies towards more diversification and more possibilities. It is too early for us to judge which project has potential, because based on past experience, all NFT projects that later became popular have not received the attention and recognition of the public at the beginning of their sale. And some things that we consider “worthless” may have begun to gradually become market trends.

Note that a new wave of NFT issuance is coming.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-kind-of-changes-will-bayc-lead-the-nft-circle/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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