The Bored Ape Yacht Club is a huge hit, but is Wall Street ready for the NFTs?

Months after its launch in April 2021, Bored Ape Yacht Club (BAYC) has become one of the top reasons Wall Street should take the emerging non-fungible token (NFT) market seriously, thanks to its recent sales of more than $ 1 billion.

Celebrities are introduced to BAYC

For the uninitiated, BAYC is a collection of 10,000 anthropomorphic monkey cartoons with fancy clothes and disreputable facial expressions. Each monkey is practically an image file that should have no value in a healthy world. Even so, they managed to raise incredible sums of money, sometimes from some of the most famous celebrities in the world.

For example, Jimmy Fallon, a popular American television presenter, bought a picture of a bored monkey with a striped shirt and heart-shaped curtains for nearly $ 220,000 last November. And recently, Oscar-winning rapper Eminem paid nearly $ 462,000 for a monkey that looked a bit like him.

Eminem’s boring jumpsuit nicknamed BAYC # 9055. Source: The Guardian
The Bored Ape Yacht Club is a huge hit, but is Wall Street ready for the NFTs?
The Bored Ape Yacht Club is a huge hit, but is Wall Street ready for the NFTs?

In the meantime, one of the rarer bored apes, which had a gold-skinned trait, sold for $ 3.4 million at an online Sotheby’s auction in October, breaking the record for another rare laser-eyed monkey that sold for $ 2.9 million -Dollars a. was sold to Sandbox a month earlier.

But what’s the selling point?

The BAYC collection derives its value from NFT, proof of digital ownership registered on a public blockchain. Think bitcoin (BTC), but each “currency” is in some ways indivisible and unique.

While, Most of NFT’s projects, including BAYC, are run on the Ethereum blockchain, which is calculated in their native Ether (ETH) token.

But craziness isn’t the only reason people pay millions of dollars for bored apes. In addition to owning a unique avatar, people also get access to an exclusive member club that is enforced with tokens. This gives them access to a narrow circle of elites, which gives them more profitable opportunities and status.

Evan Luthra, CEO and founder of EL Group International and exclusive member of the BAYC Club, spoke about the attractiveness of the elite association. The 26-year-old angel investor described membership as something “very strong for the people of Wall Street”.

“I think a new celebrity comes into the club every day.”

Bored Ape collectibles also allow their owners to enter private messaging forums on Discord and get privileged access to other NFTs.

Bored Ape Yacht Club “Reserve Price”

Bored Ape collectibles also allow their owners to enter private messaging forums on Discord and get privileged access to other NFTs. And then, Some resale value is attached to these NFTs, as evidenced by their increasing “lower price”, which reflects the lowest open offer for collectibles.

On Jan. 7, BAYC’s low was at 68 ETH, or around $ 217,800, up 380% from its mid-August low.

BAYC minimum price chart. Source: CoinGecko

Noelle Acheson, Director of Market Insights at Genesis Trading, recognized BAYC as being more flexible to work with than CryptoPunks, one of the few high profile NFT collector series that preceded it.

These collaborations include a BAYC-inspired Adidas team, the signing of a talent agency, a potential music group Bored Ape, and other related assets growing around lazy monkey figures.

“So the concept of floor prices that drives institutional investment in NFTs, and its increasing use as collateral for loans, no longer depends solely on how much investors think someone else will pay.Acheson stated, adding:

“The floor price and the appreciation potential of an asset now also depend on what else the NFTs can be used for, and just showing them.”

Luthra agreed, adding that continued celebrity participation in BAYC would further increase its awareness among both private and institutional investors. This can create more demand for your NFT collection, which in turn would increase your reserve price.

The “meta” factor

Jelmer Rotteveel, co-founder of the NFT MoonwalkerFM collection, added another optimistic endorsement to BAYC’s core rating: the ongoing meta hype, renamed by Facebook to support the social media giant’s Metaverse ambitions.

“With the advent of meta, we will enter a new form of communication and business,” Cointelegraph said, adding that NFTs would become an integral part of the Metaverse sector, with users supporting unique digital avatars like Bored Apes to digitally interact with each other.

He added:

“I think people will take a closer look at the developments of NFT projects like BAYC and, as they saw it with cryptocurrencies, intervene one by one.”

Acheson noted that Facebook / Meta pledged to spend approximately $ 10 billion to develop Metaverse., citing CEO Mark Zuckerberg’s statement that they would seek decentralized Metaverse applications.

“Believe it or not, investors are likely to think about getting ahead of these currents,” he added.

Will Wall Street become NFT?

As mentioned earlier, BAYC’s net sales recently exceeded $ 1 billion, nearly 10% of what Apple made in 2021. the NFT sector processed total sales of $ 41 billion, nearly equaling the year’s global art sales, according to the Chainalysis data.

Matt Hougan, chief investment officer at Bitwise Asset Management, admitted that many of his clients had gotten into the NFT space without crossing through its formidable technology.

In response, Bitwise launched a special fund last month that tracks its own NFT Bitwise Blue-Chip Collections Index, a basket of the ten largest NFT collections weighted by market capitalization, and purchases and maintains artwork from BAYC, CryptoPunks and other NFT projects.

The “Blue-Chip NFT Index Fund” is only available to institutional investors who invest at least USD 25,000 in the product.

Returns that Bitwise’s NFT fund generates from the start. Source: Bitwise Asset Management

Rebekah Keida, Chief Marketing Officer of the New York investment management firm XBTO, endorsed the prospect of including top-notch NFT projects like BAYC or CryptoPunks in Wall Street funds.

Keida says it would open the floodgates for accredited investors to invest thousands, even millions of dollars in these digital projects.

“The opportunities offered by the increased flow of capital increase the legitimacy of large NFT projects and at the same time enable investors to participate in crypto in a wide variety of ways.” he said to Cointelegraph.

Showing confidence in asset managers’ ability to follow Meta’s foray into the Metaverse sector, Luthra said:

“If Meta believes that the future lies in the Metaverse and invests their time and energy there, it is only logical that asset managers introduce funds into the industry. As the space matures and more opportunities become available, I am confident that many more Metaverse-related funds will seize the opportunity.

Meanwhile, Sami Chlagou, Metaverse Game CEO Over time, he likened Meta’s potential involvement in the NFT space to “shedding light on the minds of investors who are far behind in this concept.”

“Whether you consider Meta’s decision for good or holds up badly, the fact is that when one of the largest social media groups, open to innovation and known for shaking up our environment, talks about a topic, it opens doors and the desire to get involved. “

The views and opinions expressed here are those of the author only and do not necessarily reflect the views of Every movement of investment and trade carries a risk, you must conduct your own investigation when making a decision.

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