Your project became a Bored Ape? Remember these 3 things

bored ape

Bored Apes Rule

Since last year, NFTs have taken the crypto and art world by storm. However, outside of a few projects like Beeple and the Cryptopunks, very few have achieved mainstream major success. One of these successful projects is the Bored Ape Yacht Club. With Steph Curry, Paris Hilton, Eminem, Jimmy Fallon, and other high profile celebrities owning one of the ten thousand apes, it’s nice company to keep. 

While we can say that art is in the eye of the beholder, is there something in these relatively ugly apes that we are missing? Is the value of the NFT really in the randomly generated ape art or is there something else? 

Financially the Bored Apes might exceed other projects out there, by eliminating the cap of $100,000 that other NFTs established. Unlike Cryptopunks, which the Bored Ape collection recently surpassed in value (floor price of a Punk is 70 ETH (200k) vs Bored Ape Yacht Club at 100 ETH (280K)), ownership of a Bored Ape gives the owner full commercialization rights with no cap. 

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With this infinite cap, collectors have been clamoring to get a piece of these recognizable overnight celebrities. One of them signed his four apes into a virtual band with Universal Media Group, while another has converted their ape into a beer mascot, and still yet another stars in a metaverse building experiment with global shoe brand Adidas underwriting it. Another ape owner has gone so far as to create an entire story for his ape, now properly named Jenkins who has gotten signed by CAA and has a biography written about him by Neil Strauss.

 

Bored of Counting all the Bucks

The big difference with the BAYC project and collectibles and NFTs is that with collectibles you are buying into the artwork and collectible value, and NFTs the 100k cap of potential revenue along with membership rights and other perks and benefits. As the NFT market continues to shake out, we should see more and more artists give their creations away in the hopes they can monetize on the backend. 

Remember these 3 Things

Are you building commercialization and monetization rights into your NFT or is it a straight piece of artwork? Are you ready to give away these rights with no possible recourse? It might make sense to have a plan as to how to monetize should one of your NFTs take off and how to capitalize on that initial publicity. Remember these three things in case your project becomes the next BAYC.

  • Make sure you have a different follow up project to sell if something becomes a hit, (perhaps a derivative project, like the Mutant Apes or Kennel Club)

Bored Apes launched on May 1, 2021 and took in $2.2m in initial sales (0.8 ETH ($220) + gas for the first 10,000 apes).  After a summer of frenzy, the Apes started to take off and in August, Yuga Labs gifted Mutant Ape Serums to existing holders.

The Mutant Ape Yacht Club is a collection of up to 20,000 Mutant Apes that can only be created by exposing an existing Bored Ape to a vial of Mutant Serum or by minting a Mutant Ape in the public sale. These additional mutant Apes (10K) were sold to the public at 3 ETH, this time raising almost 50 times more money $96m.

Today the original apes trade at 100 ETH and the mutants at 20 ETH. To think, if you were an early adopter, you were GIFTED one. A less successful project (relatively speaking), is the Bored Ape Kennel Club, another derivative of the original apes and now each NFT has a floor of 8 ETH. Thus make sure you always have an additional project that you can release to capitalize on the success of the first one. 

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  • Make sure that you build your royalty into a smart contract and make it a percentage of sales and not a flat fee

Another source of income for Yuga Labs is in the resale and royalty rights. Most NFT smart contracts have resale royalties built in. Yuga Labs receives a royalty of 2.5% each time a Bored Ape trades hands and at the floor of 280,000 that’s 7000 each time. 2.5% is pretty standard. Remember the platform like OpenSea also gets a percentage as well as any other stakeholders. While you can build in a greater resale royalty, the transparency of the transaction may turn off some collectors, thus killing your project.

  • If you are doing PFPs, hold some back, should the project get big you will have some that you can sell if demand increases.

Finally a lot of people are recreating the basic playbook of profile picture NFTs … They are hoping to sell out of them initially and make money on their resale rights. But why not take the page out of publicly traded companies or art galleries? Release some into the market and see how they do? Depending on who is paying the gas fees you could save some money and if the project truly takes off you can release the remaining inventory at the new floor price. Bored Apes took in 2.2m in its initial sale. $220 + gas for 10k apes (0.08ETH) (They are now about 100 ETH) … 

Yuga could have held a handful of these apes to sell at the new market price although they didn’t. Smartly they have created more apes (the mutants and the kennel club) so they can continue to build their community and brand

Any other tips for aspiring NFT makers? 

Your project became a Bored Ape? Remember these 3 things via @famecastmedia

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