It was the early months of 2021, and while the world was divided between VAX vs. NO-VAX and between those wearing masks and those not, the mysterious collective Yuga Labs cleverly rode the growing popularity of NFTs in the market and the media, designing and registering on the blockchain the most famous collection of illustrated apes of all time: the Bored Apes Yacht Club (BAYC).
The operation immediately became a sensational success. Priced at around $200 each on the Ethereum blockchain, all the apes sold out in less than 24 hours, generating roughly $2 million. What happened next is both grotesque and astonishing, so here we outline the key points of this incredible success and the challenges that inevitably emerged in the short period that followed.
The apes were essentially graphic images created from a random combination of 170 traits, including expressions, hats, glasses, clothing, and more. This method of creating the collection immediately recalls the Cryptopunks, which had been launched four years earlier.
Two words in the project’s name deserve special attention: YACHT CLUB, evoking an exclusive circuit, the kind frequented by people everyone wants to know. In this sense, the ape community immediately began to build and claim a strong image, accompanied by an instant role as a status symbol. Price and celebrity went hand in hand, and before long the coolest figures of web3 and social media started using their apes as PFPs (Profile Pictures).
Displaying your bored ape instantly grants superhero-like powers: skipping lines in clubs, gaining thousands of followers, and putting you in the spotlight in every public social media conversation, like a golden halo around your head. More potent than any charisma-enhancing potion, your bored ape becomes a passport into a world of wealthy, fun people who can afford to invest hundreds of thousands of dollars in a digital image, indifferent to a world teetering on financial collapse.
While the images are indeed charming and appealing, it is certainly not their aesthetic alone that makes them so valuable. What turned them into the most coveted object of 2021 was that they became a symbol of a world of luxury, parties, and youth.
Unsurprisingly, celebrities flocked to this ostentation of superficiality and the distant hint of artistic creativity. VIPs sought the rarest and most unique BAYC apes to own—and, above all, to display to the world. Price was irrelevant; the more expensive, the stronger the message: “I can afford a half-million-dollar JPEG.”
Forgive the sarcastic tone, but no one appreciates the value of digital art and the disruptive power of NFT art linked to digital ownership more than we do… when it comes to art, that is.
Thus, Eminem flaunted his newly purchased ape for $460,000 and, alongside Snoop Dogg, showcased it as an avatar at the MTV Video Music Awards. The whole world talked about it; it was the trend of the moment. Everyone claimed to know someone who bought an ape for $2,000, which was now worth $200,000—but not for sale, because one day it would reach a million!
Celebrities kept piling in: Justin Bieber, Stephen Curry, Jimmy Fallon, Neymar Jr., Madonna. Even the most famous pop star of recent music history could not resist… Madonna indulged herself with just $560,000 and acquired ape #4988, for those curious to check if it somehow resembles a Picasso painting. Earlier, she had missed out on a more expensive ape at auction, being outbid.
Putting aside the folklore, Yuga Labs proved extremely clever, particularly in marketing. Soon after, they launched another brilliant idea: the MAYC (Mutant Apes Yacht Club), a new series of mutant apes, similar to the originals but with transformed and distorted traits. 10,000 new NFTs were released at 3 ETH each (approx. $9,000), generating a staggering $96 million in hours. To maintain the sense of an exclusive club, all BAYC owners received a free serum to create a mutant ape. Some used it; others sold it on the market for thousands of dollars.
The mutant apes made headlines immediately. Within a day, their market value had doubled, and some transactions saw prices exceed half a million dollars. The world went wild over bored and mutant apes. The rush of money from this extraordinary financial, creative, and subcultural phenomenon reached everyone. Sotheby’s soon held a dedicated BAYC auction, selling 101 apes for $25 million.
Those days were a moment when people went crazy over two words: NFT and metaverse. Yuga Labs tapped into this with Other Side, a metaverse dedicated entirely to the bored apes ecosystem: a club, a game, and a new business opportunity. Other Side also allowed collectors to buy virtual lands, adding another layer of profit. These lands became highly sought-after, costing tens of thousands of dollars.
The strategy of gifts and rewards was central to Yuga Labs’ success, paired with an irrational NFT environment and an audience ready to go to extremes. In 2022, the team sent more than $100,000 in the new Ape cryptocurrency (Ape Coin, the Yuga Labs DAO governance token) to all BAYC and MAYC holders. Ape Coin immediately disrupted the market, showing extreme volatility. Launched at around $7, it quickly rose to $24.
The gold rush ended shortly after, as the cryptocurrency winter hit. Ape Coin plummeted to just over $1, and apes sold for only $40,000, after previously peaking at minimum prices above $400,000.
This brief but intense story captures the excitement and extreme volatility of these phenomena. When people claim Bored Apes were a scam or a way to lose money, it’s worth reading the entire story—absurd, fantastic, almost novelistic—that made many small millionaires who dared to follow a visionary dream.
The success of Bored Ape Yacht Club goes beyond financial value. It created a vibrant community united by a passion for digital art and pop culture. Members actively participate in virtual events, interact with other collectors, and share their love of digital art. They meet around the world, celebrating and networking, all generously supported by Yuga.
The rise of the Bored Apes illustrates the profound cultural impact of NFTs. These digital assets transcend traditional creations, opening new avenues for creative expression and cultural interaction. Owning a digital artwork that grants access to an exclusive cultural world is compelling for many.
In conclusion, Bored Ape Yacht Club exemplifies how NFTs are reshaping art and pop culture. Beyond financial gains, these NFTs provide a cultural experience to a growing audience, showing that digital ownership can create phenomena far beyond aesthetics, fostering a shared and engaging culture.
