NFTs are tokens that allow you to own digital assets. In this example I am going to be talking about digital art NFTs that are owned on the blockchain. One of the most famous of all NFT projects is arguably Bored Ape Yacht Club (aka BAYC, which also includes Mutant Ape Yacht Club and Bored Ape Kennel Club). These funky digital drawings sell for luxury art prices. Justin Bieber just purchased one for USD$450k; many believe that these pieces of art will hit $2 million by this summer.
In a post on Twitter today, one of the better known artists in the space, @FVCKRENDER, a rare owner of 4 of these highly desirable pieces of art, is offering to trade them for a home in Vancouver.
Well hey, the Vancouver real estate market is hot and growing at double-digit percentages year after year – but Bored Apes are growing in value by triple digit percentages every quarter with no ceiling in sight. This exposes a problem with investments in Crypto and NFTs – how do you get your money out? I do not know this owner’s story or what they purchased these for (side note: you can check this on the blockchain) or how much equity he has in the art – but this @FVCKRENDER clearly needs a home in real life. If this person minted these Apes, they were in at an initial price of $190.00. Imagine creating something that starts around that price and watch it grow to what it has become today – and they just continue to increase in value.
WAV Group has been entrenched in researching the NFT eco-system and has already initiated its first NFT project set to launch in Q1 2022. There is no greater success story to understanding NFTs than that of BAYC. All of the 22,000+ owners of these pieces are part of a pretty small club. This club includes celebrities like Eminem, Jimmy Fallon, Rich The Kid, Steve Aoki, Steph Curry, Snoop Dog, Justin Bieber, and more. The lowest price for an NFT in the Bored Ape family (at the time of this article), ranges from $26,000 to over $450k.
A key feature of BAYC utility is the participation in their online community and gated Web3 experiences; a lot like a social club. A way to understand this is to think about luxury communities, or in this case – metahumans who are building relationships in a digital world. Huge brands are doing NFT collaborations with BAYC owners. In many cases, BAYC holders are gifted NFTs in exchange for helping to promote a new NFT drop; this social equity has been built from the BAYC value and hype. Some BAYC owners have literally become major influencers in the NFT space. If they give a shout out for a new NFT drop, their influence can move the needle on the promotion of the NFT and speculators will drive up the value of the new release.