Bored Ape Yacht Club – Is Wall Street Ready For NFTs?

January 21, 2022 8:50 pm Comments

The Bored Ape Yacht Club (BAYC) was able to bring mainstream awareness to the world of NFTs and certainly accelerated the growth of the industry.

The BAYC was first launched in April 2021 and broke record sales as it had a sales turnover of over $1 billion.

To give some insight to the BAYC is, it is essentially a collection of 10,000 images of apes with stylish clothes and expressions.

Typically, these images would not have any real value, but yet this NFT collection was able to collect astonishing sums of capital as will buyers were willing to spend millions to acquire them.

For example, celebrities like Jimmy Fallon and Eminem have spent anywhere from $200k to $400k on buying some of these BAYC NFTs which attracted a lot of attention on the news.

Online records show that the demand has not gone down and that one of the Bored Ape images was able to sell for around 3.4 million in an online auction.

CoinTelegraph explains more about what gives them their mass appeal:

The BAYC collection fetches its value from NFTs, digital ownership proofs logged on a public blockchain. Think Bitcoin (BTC), but each “coin” is indivisible and unique in some way.

Meanwhile, most NFT projects, including BAYC, settle via the Ethereum blockchain, priced in its native token Ether (ETH).

But rarity is not the only reason people pay millions of dollars for Bored Apes.

In addition to owning a unique avatar, people also gain admissions to an exclusive membership club, imposed with tokens.

That gives them entry into an inner circle of elites, bringing them status and more profitable opportunities.

Evan Luthra, the CEO, and founder of EL Group International and a BAYC’s exclusive club member discussed the allure attached to the elite association.

The 26-year old angel investor referred to the membership as something that is “very strong for the Wall Street folks.”

“I think there is a new celebrity joining the club every single day.”

Bored Ape collectibles also enable their owners to enter private messaging boards on Discord and gain privileged access to other NFTs.

NFTs will also become an integral part of another emerging industry called the metaverse which is all about a virtual world where people will interreact with others for goods and services.

As part of this virtual world, the NFTs would be part of it and would support things like digital avatars, items, and more.

Thus, the utility for NFTs is actually multidimensional and it turns out that they can be used for much more than just images.

Many members of Wall Street seem to be interested in the industry as well as reports show that many clients have been looking to get into the NFT space.

The use of NFT collections such as BAYC have since then gone from a niche market to a global trend with many public figures jumping onboard.

CryptoPotato explains:

The use of NFTs has become quite popular in recent months after major brands, celebrities, athletes, and famous artists started to get into it.

BAYC NFTs act as representative avatars and membership tokens of an online social club.

They were created in April 2021 with an initial price of 0.08ETH and have since grown in popularity to become the most valuable collection, surpassing the floor price of the highly popular Crypto Punks.

For now, NFTs have had a primarily speculative and artistic use, but they may become more prominent in the future.

Game and software developments will use NFTs to represent objects in the metaverse, and there are potential use cases in the supply chain, politics, and identity verification that are still being explored.

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