What makes an NFT valuable?
The quick answer is that value is very much in the eye of the beholder, just as it is with real-world art. It's difficult to say what makes BAYC or any other NFT collection valuable. In general, it's a combination of three factors: Influence, the strength of the community, and member benefits or utility.
Influence, Community, Utility
When celebrities own an NFT, it inspires others to want one as well. Jimmy Fallon is a good example. The Tonight Show host purchased a Bored Ape NFT for $145,000 and displayed it as his profile picture on Twitter to his 50 million followers. This sparked interest and drove BAYC sales, which is reflected in the volume and price rise mentioned above.
Value is promised in the form of utility by most NFT projects. This can be offered in a variety of ways as access to play-to-earn games or the ability to stake an NFT in return for an associated cryptocurrency. Some collections even allow breeding your NFTs or using other digital assets to mutate and create a whole new piece of art. As more items become tokenized on the blockchain we will start to experience utility in more real-world applications. Think of lifetime VIP concert passes for your favorite band.
Bored Ape Yacht Club has done a few things to keep owners engaged. They established the Bored Ape Kennel Club, which gave ape owners the ability to adopt a dog NFT with characteristics like those of their Bored Apes. They also expanded the original collection with the inception of the Mutant Ape Yacht Club (MAYC), where owners were given the opportunity to build a Mutant Ape NFT by combining their Bored Ape with a mutant serum. Kennel Club and Mutant Ape NFTs both sell for a high price. Following the pattern of the original Bored Apes, the floor price of the MAYC collection has jumped from roughly 4 ETH to 20 ETH.
Finally, and perhaps most importantly, a collection's community. Meetups for the Bored Ape Yacht Club have taken place in New York and California, as well as Hong Kong and the United Kingdom. Owners were invited to a weekend of festivities hosted in New York in November, including a real boat party and a concert with Chris Rock, Aziz Ansari, and The Strokes.
Blockchain To Off-Chain Branding
As the BAYC gradually shifts away from NFTs toward being an "off-chain" brand, or one that lives outside of the blockchain. Bored Apes and Mutant Apes are appearing in the fashion world. Adidas' first NFT project, was launched in partnership with many NFT brands, including Bored Ape Yacht Club. Adidas also purchased a Bored Ape Yacht Club NFT, which is now shown on the company's Twitter profile.
What owners are doing with their apes, is even more inspiring. Complete commercial rights come with owning a Bored Ape NFT, and they are being used in some innovative ways by holders. One owner gave his ape a Twitter account and a backstory, transforming him into Jenkins, a valet at the Yacht Club. This fictional NFT character was signed to a real-world agency and will be given his own biography, co-written by New York Times bestselling author Neil Strauss. Three Bored Apes and one Mutant Ape were signed by Universal Music Group creating the first NFT band, Kingship.
This is only the beginning, with a little creativity the possibilities are endless. Enter to win our Mutant Ape #2129 and be the one to take him to the next level!