Overview
Bayc is a fast-growing project in the NFT space. Having launched in Q2 of 2021, the project has been supported by plenty of superstars worldwide like Neymar, Justin Bieber, Stephen Curry, and more.
The Bored Ape Yacht Club offers a collector’s edition of NFTs set of 10,000 individual apes depicting a group of bored-looking apes, each with their own unique characteristics.
Moreover, this NFT’s blockchain-based project has its income stream via minting new artwork, transactions, and royalties.
Company Profile
| Company Name | The Bored Ape Yacht Club |
| Website | https://boredapeyachtclub.com/#/ |
| Founded | April, 2021 |
| Founders | Greg Solano & Wylie Aronow – Co-Founders |
| Key People | Atlas Benjelloun – Chief Creative Officer (CCO), Nicole Muniz – Leadership Team, Chris Lyons – Advisors |
| Headquarter | Anonymous |
| Company Revenue | $137 million in 221 |
| Key Competitors | CryptoPunks, MeetBits, Decentraland, Axis Infinity, SAND |
What is Bayc? A Brief History
Bored Ape Yacht Club, a.k.a Bayc is a non-fungible token project built on an Ethereum blockchain. According to its whitepaper, there are 10,000 unique NFTs with ape appearances.
Typically, the NFTs become more valuable when they are less in supply and more in demand. In this case, the Bored Ape has only 10,000 pieces, making its floor price 20 ETH.
The Bored Ape NFTs are usually kept and verifiable safely by the owners on the Ethereum blockchain. This means that both the NFTs and tokens are entirely in your control in terms of economic exploitation.
In April 2021, the Bored Ape Yacht Club was launched on the Ethereum mainnet. Yuga Labs, the founder, backed this blockchain project.
Despite their prominence in the cryptocurrency sector since 2017, the developers of NFTs keep relatively anonymous. As a consequence, they adopt identities: Gordon Goner and Gargamel.
Haskmasks was the initial NFTs project they had discovered. This draws their attention to developing a similar community-driven project like Bayc, which has been so successful in the contemporary NFT space.
Bayc came into effect and launched on an OpenSea marketplace, in which the floor price was only 0.8 ETH. However, it was a rough kick-off for them. Fortunately, the floor has quickly increased as a number of crypto celebrities, like DJ 3LAU, tweeted about the Bayc project and idea.
How Does Bayc Work and What Does it Offer?
So how exactly does Bayc work?
Like other NFT projects or real-world arts, Bayc offers a wide range of benefits to those who own the NFT. The very first thing when possessing the ape is the owner has got the ownership and rights of that specific NFT.
On top of that, in a Bayc community, all NFT owners are exclusive members and invited to a private Discord group. In there, users will be able to follow up with all critical Yuga Labs events and upcoming news. For instance, the Bored Ape Kennel Club offers a collection of NFT dogs.
The early adopters who made this Bayc famous were Eminem, Stephen Curry, Justin Bieber, DJ 3LAU, and other influencers.
Furthermore, what is unique about NFT is that it has an exceptional value of its own. For instance, if you own a golden fur ape, you will be the owner of a rarer NFT, meaning it is much-worthy.
What does Bayc offer to its consumers?
Those who need Bayc tokens can go to OpenSea and Rarible to buy. They are the two market platforms that offer Bayc’s sales.
Bayc is considered an elite community for NFT holders because its floor price is worth more than 20 ETH. Therefore, ordinary people would not be financially capable of becoming part of the community at all.
Since Bayc is highly exclusive, it provides many benefits to its premium members, as mentioned earlier. Specifically, those NFT holders will have early chances to buy newly-established tokens or NFTs from the Yuga Labs.
For example, before an APE coin was released, Bayc NFT owners got a signal to buy at a very cheap price. After listing, the APE hit its all-time high at 28$ on the Binance exchange. The APE coin is currently trading at 16.20 (at the time of writing) and potentially a hundred dollars in the nearest future.
Bayc Business Model
Bayc has implemented the De-Collaboration business strategy. There haven’t been many of them so far.
Bored Ape Licensing offers owners of its NFTs extensive rights to commercially exploit its character connected with the NFT bought, in contrast towards the more conventional NFT licensing.
This license from Bored Ape offers “unrestricted, global permission to utilize, replicate, and exhibit the acquired.
On the other hand, De-Collab is a synonym for an alternate approach to decentralized collaboration. It is becoming more prevalent in the NFT space. Blockchain technology must execute the De-Collab concept and be used, and NFTs are being traded.
NFTs are minted and stored as a unique identity on a blockchain. The smart contracts are built to execute every NFT activity to reach a consensus. Use cases for NFTs include tying an NFT to an item of art or material that is kept on the blockchain.
The NFT is neither a work of art nor a piece of content. People who buy NFTs usually get a content license that allows them to create some kind of utility.
Bayc Unique Selling Propositions
The De-Collab is an approach that works as a unique selling point for the Bayc project. It comes with some benefits.
To begin with, a De-Collaborative model allows a newly established project to construct a new collaborative environment. Because of this, it has the ability to grow partnerships naturally from the ground up, without any need for expensive financial activities such as hiring attorneys and negotiating content licensing.
Rather than paying workers to develop the ecosystem, the NFT developer enlists the help of innovative, enthusiastic NFT buyers.
From there, the project has generated over $1 billion in sales. Consequently, Bayc has become the biggest project in the NFT space, surpassing CryptoPunks and Larva Labs.
How Does Bayc Make Money?
Source: Coingape
Bayc generates income in numerous ways; however, its most significant income stream is from NFTs’ ape minting. Then earning through royalty fee from additional sales and other activities. Yuga Labs, the company that made BAYC, gets 2.5% of the game when it is sold.
Every ape serves as a collectible in its own right. The current market price of a BAYC is roughly 83.5 ETH, which is approximately $240,000. Due to the shallow production limit of 10,000 units, the more scarce an item is, the more precious it becomes.
If an ape has less than 1% capabilities, it is deemed unusual in the BAYC collection. Many apes in the bundle have gold fur, but only 46 of them are throughout the whole collection, and this makes Gold Apes become a scarce resource.
Raising the collection is an additional revenue stream for Bayc. It wasn’t long before the Kennel Club came into being, which allowed NFT owners to acquire a dog NFT like these Bored Apes, if they are really enthusiastic and desired.
Bayc SWOT Analysis
Organizational strengths, limitations, and outside factors are generally identified and analyzed using the SWOT analysis to influence current and prospective business operations and define organizational plans.
Strengths
- In March 2022, Yuga Labs closed a $450 million investment round headed by Andreessen Horowitz.
- Numerous owners of Bored Apes have made money from the sale of their apes in recent years, to name just one example.
- With a strategy focused on delivering lasting value to the community members, the Bored Ape network is still a vibrant and robust place to hang out in. Yuga Labs officially unveiled that it has bought both Meebits and CryptoPunks, proving that the NFT industry advances at a breakneck rate. As a consequence, Yuga Labs currently owns three of the most priceless NFT sets.
- Acclaimed celebrities from over the globe have swarmed to acquire Apes as a status symbol and instantly modified their social networking profiles to showcase new acquisitions.
- Net sales of the company just surpassed $1 billion, about 10% of Apple’s 2021 revenue.
- Institutional and private investors alike have been familiar with BAYC thanks to the involvement of the entertainment industry. As a result, the floor price of his NFT series may rise due to rising demand.
Weaknesses
- As NFT marketing trading increased, the business discovered money laundering and wash trading indications.
- NFTs are highly risky and are never guaranteed.
- The tokenization of an artist’s artwork against their consent is a common occurrence in fraud situations.
- There is a capital gains tax that applies to NFTs.
- Both Bayc NFT’s and APE’s prices are already high so they might dump anytime.
Opportunities
- First-time buyers have already earned a sizable profit.
- For several years, projects funded by venture capitalists and high-profile celebrities have had a more substantial chance of success.
- Additionally, the corporation has launched the Bored Ape Kennel Club with Mutant Ape Yacht Club.
- NFTs are highly risky and rewarding at the same time. It would be a great opportunity if you could buy Bored Ape NFTs at a lower floor price.
Threats
- NFTs are only profitable and risk-free for early adopters.
- Cryptocurrency wash trading has been a problem in the past. An NFT might be utilized to artificially raise its worth prior to selling it to unknown customers.
- In the case of big influencers selling off their NFTs or posting any negative news, the whole project will be affected.
- NFTs are prone to scams; therefore, you have to invest at your own risk.