Bored Ape Not Club
It's been quite a while since I've seen or read anything new from the Bored Ape Yacht Club community. BAYC NFTs soared to values in the $500,000 range just a year ago, at the peak of the NFT boom. Everyone was making profile picture NFTs, and Yuga Labs made billions. They even created the Ape Coin and started a DAO. Then they dropped the Otherside metaverse which was literally all hype and a big nothingburger. I came across this article on Cointelegraph the other day and I couldn't help but do some reflecting on the whole thing.
I've been a huge supporter of NFT technology since the second I read about the concept and got my first NFT. I literally wrote a whole series of articles here on this LBI account highlighting different use cases for NFT technology while everyone was drooling over ugly monkey JPEGs. You can find that series along with a plethora of other useful crypto stuff in my master index of educational content, Learn Crypto Stuff. Now that we've established that I think of NFTs as something revolutionary for a lot of reasons... Let's reflect on the Bored Ape Yacht Club rise and fall.
These 10,000 generative ugly monkey JPEGs rose to an insane floor price of around 153.7 ETH, or about $218,000 right now. Consider this 1 year ago, and you can only imagine how high that was. Floor prices for these damn monkey NFTs soared to the $500,000 mark because everyone had to have one. The people behind this shit are geniuses of building hype. But what happens after the hype dies?
People were taking out collateralized loans with their monkey JPEGs on different NFT loan platforms like BendDAO. Tons of these users are headed for liquidation if the floor price continues to fall for the NFT collection. BendDAO is going to have to liquidate a lot of Apes to recover all the ETH they lent out to people that really had nothing more than an NFT to back it. With the floor price for BAYC falling from 153.7 ETH to lows of 69 ETH, things are not looking great for people trying to hold these things. At this point, the smart thing to do may be to go ahead and take a loan out in ETH before the price falls more and let it liquidate.
You have to look at the people that are still really even hyping BAYC to see where the market stands overall. I think literally the only thing helping hold the floor price up is celebrities like Snoop Dogg and Eminem. Aside from seeing them in music videos and hearing about them in rap songs by music icons... What are you really hearing about BAYC anymore? They hype has died. There is no way to hype the same monkey JPEG collection anymore. This is a good thing though, it needs to die slowly to not kill the entire NFT market.
At the end of the day, the whole Bored Ape Yacht Club cult is still alive and well. They probably will be, clawing at trying to make sure people still want to buy these NFTs. Can you blame them though? What's the incentive to spend $100,000 on a monkey JPEG when Snoop Dogg & Eminem get bored of promoting the whole thing? There's no new developments. There's no incentive to hold because the Ape Coin airdrop already happened. The Otherside metaverse game is kinda terrible (haven't played but I've seen gameplay).
The fact that one of the biggest (if not the biggest) profile picture project is losing its steam is actually a great thing. Sure, it's going to hurt for some people, but for those of us that are truly here for the technology and cool shit being built... We will celebrate as people will start to look at NFT technology differently (hopefully, but not likely). People will start being able to see past the hype and insane price tags on hype NFTs. People will realize that NFT technology can be used to streamline and change a lot of things.
RIP BAYC
Article written by: @l337m45732 AKA 0xNifty.nft
Posted Using LeoFinance Beta
