Bored Monkey Yachting Club (BAYC) NFT: Is it worth investing in?

In the meantime, there is likely to be a notion that very few NFTs are actually serious art or art projects. This becomes especially evident when you look at the most expensive and currently sought-after NFT collection: The Bored Apes. What is art or not is of course in the eye of the beholder. If you wish, you can hang a digital monkey picture in an NFT picture frame on the wall at home. But it is a mistake to think that this circumstance justifies prices in the millions.

The Bored Ape Yacht Club (BAYC) version, featuring 10,000 monkey photos, set new sales records a few days ago. Bored Monkey #232 has overtaken the hypothetical counter by the equivalent of $2.85 million. But why would someone pay so much money for a digital monkey photo?

Having It All – Welcome to Celebrities

Celebrities like Justin Bieber, Eminem or tennis pro Serena Williams are united: they all have bored monkey NFTs and are thus prominent members of BAYC. They also paid a lot of money for this membership. For example, Justin Bieber spent $1.3 million for his digital monkey. Although not much, Eminem still spent $461,000 on Bored Ape NFT.

The principle behind this elite club is simple: You are between you and whoever belongs to it. Elite circles and member clubs are brought to the digital level by NFTs. Just as you can become a Soho House member or get a membership to the exclusive Liberty National Golf Club in New Jersey for around half a million US dollars, indoors are now also being created in the purely digital world. If you no longer know which luxury watch or yacht you should buy next, NFTs membership gives you a new chance to show your own stature.

NFT digital growth sector communities

In various variations, a strong growth of digital clubs can be expected in the future. The market growth is expected to become an attractive playing field for adventurers and investors through NFTs and social tokens. Especially with regard to metaphysics, there are no limits to the imagination. The catch is that no one currently knows which societies will prevail in the next few years. Everything is still new and messy, as was usual in the beginning of the discovery phase.

Like the finest bars, restaurants or clubs in a metropolitan metropolis, trends are primarily what determines the value of membership, ergo NFT. Today it may be BAYC, but tomorrow the stars may already have arrived at a new club. Those who are still members of the NFTs from the club that has suddenly gone out have to reckon with a massive drop in prices.

Is it still worth joining Bored Ape Yacht Club (BAYC)?

Anyone who thinks that celebrities and the affluent will still meet at Bored Ape Yacht Club in ten years could be in luck because one of the cheaper examples, currently around $200,000 USD, would then be more valuable. Especially since the prices of 10,000 Bored Ape NFTs in total are likely to converge more and more over time. After all, the membership aspect dominates and less than the individual technical aspect. Also, it is important to remember that NFTs owned by celebrities are likely to have a higher resale value than those owned by anonymous individuals.

Given the rapid pace of the crypto sector, one might now wonder how likely it is to create BAYC. Certainly, the assumption of a bubble in this particular case seems reasonable. The company behind BAYC, Yuga Labs, is already valued at more than $5 billion. Assuming the average selling price for a Bored Ape NFT is $200,000 – most of the offerings at Open Sea are much higher – then you’d reach a raised value of $2 billion.

For a digital club with no history or track record, that’s quite a sports sum. Accordingly, Yuga Labs immediately opened a second club, the Mutant Ape Yacht Club (MAYC).

NFT Investment Clubs: The Perfect House of Cards

The price bubble is also fueled by NFT investment clubs and NFT-based DAOs. Projects such as HeadDAO are issuing club-colored NFTs in order to use this capital to acquire other NFTs. In this way, NFT investment funds can be created, among other things, where you find Bored Apes, Crypto Punks and Co. its place in the wallet. One can hardly talk about serious diversification with such NFT funds.

An increase in the demand for NFT funds, similar to what we see in stock ETFs, can lead to further overvaluation. On the other hand, if there is an uproar because a project like BAYC hits its peak and triggers a flurry of sales in similar projects, these NFTs can only add to the price drop.

Is the NFT sector in a bubble?

However, it would be wrong to conclude that the entire NFT sector is in a bubble. It can be anything and everything NFT. Is it about art? the games? a musician? Member clubs? dow? And so on. Each NFT region must be evaluated differently.

Especially in the field of traditional art, there are very realistic NFT projects where one cannot speak of exaggeration. For example, famous artist Damien Hirst recently released a new edition called NFT, which in turn embodies the claim to have received a limited edition print edition. Cost: $3,500.

It is therefore always important to ask what is the “baseline” of NFT and what benefits can be obtained from it. In the case of a member’s club, this can include benefits and private contacts, while in the case of artists it can be original prints or a personal meeting with an idol in the case of NFT music. So the base value of NFT can be configured in a very individual way. Accordingly, one can also conclude that the 1 million NFT of BAYC, which has so far not provided any significant added value apart from prestige, is exaggerated.

Everyone will get NFT membership

As far as one can look at the current development, such community structures offer a wonderful form of new digital value creation and engagement. But as with all innovations, there are also exaggerations. Bubbles are an integral part of the incorporation process.

The club system, which is outdated in some parts, as it is known in Germany in particular, is given a digital counterpart by the member clubs of the NFT. Digitization is also changing our social interaction and NFTs are a tool for controlling this in digital worlds. In a few years, most people will have some form of NFT-based membership. And if it’s just about redeeming points for weekly shopping at the supermarket.

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