Are Bored Ape Yacht Club NFTs Overpriced?

Nfts have been surging during this last Year and the most popular of these Collections is board ape yacht club and Believe it or not it's not even a year Old but despite its youth it's already Aped in celebrities like justin bieber Jimmy fallon paris hilton snoop dogg Whether or not you care about these People they are big names and they've Garnered a lot of publicity for the Platform now the collection is valued at A floor or a minimum of 91 ether that's Equivalent to about 300 000 us dollars It seems almost impossible it's like Surreal that real world people are Spending their hard-earned cash on what Some people would claim are nothing more Than internet jpegs so why are these Things so valuable why are people Spending unfathomable amounts of money On things that you can just right click On and save as part of it is the appeal Of digital status symbols but we're Going to dive into board ape yacht club We'll give you guys our opinion as to Whether or not they're overpriced [Music] [Applause] So a theme that we're going to keep Circling back to throughout this video Is the question of where does the value Of an nft like board ape actually come From and we can't simply answer that in One or two sentences either it's a

Little more complex so we're going to Break it down into a few different parts But first where do we start with the Cartoon apes well the board 8 yacht club Is a collection of 10 000 randomly Generated non-fungible tokens stored on The ethereum blockchain that means that Only 10 000 of these individually unique Ape tokens exist and only 10 000 will Ever exist within this collection it was First minted in april of 2021 for 0.08 eth or the equivalent of about 200 At that time now remember each ape is Unique in the combination of traits that They have and that means that some Traits are rarer than others making some Combinations of traits much rarer than Others and this all culminates in a Single unique image that ranges in Rarity and since each nft is Individually unique and individually Rare on a sliding scale these nfts can Easily be ranked which creates a sort of Bidding war among the rarest and most Unique of the collection the rarest are Typically the most expensive with the Most common being the cheapest it's Simple supply and demand economics Basically but again what stops someone From essentially just screenshotting That picture and claiming it for Themselves this is where we're gonna Spend some time breaking down where the Value actually comes from well the

Beauty of the blockchain is really that It doesn't matter whether or not Somebody screenshots it because each one Of these pictures were minted as part of A collection and remember that these Apes were minted back in april of last Year every single true transaction of These apes since the day they were first Minted is tracked on the ethereum Network purchases sales and transfers Are also tracked and what that means is That it's very easy to trace who owns Which ape so you can see who minted Which ape or essentially first claimed It and who then sold it and whether or Not they have it at all from there you Can track how long that person held it For who they sold it to for how much and So on so in short you can essentially And almost in an instant figure out who Is currently holding board apes and who Isn't and while screenshots seem like They give you access to the nft they Really don't because screenshots are Only saving the state of the token That's being used to differentiate each Token from the other you aren't saving The token and the only way to get true Ownership of the token is to do a Transaction on the ethereum network and Transfer the token to a wallet that you Own In other words screenshots don't get you Full possession of these assets you have

To put in the money for that to be the Case but to be fair that still doesn't Fully explain why people are paying Hundreds of thousands of dollars for These pictures So really where does the value come from This is kind of the most interesting Part and we think that there are a lot Of aspects that bring these apes and by The way other popular nft collections True value let's break it down we Understand what makes each individual Nft within a collection valuable right It's rarity but there are four things That make an nft collection as a whole In itself valuable number one the Utility it provides number two the Community it gives access to number Three the esteem or the clout that it Comes with and number four arguably Historical value let's look at these Four things and how they relate to the Apes the first and second items on this List kind of cross over so let's look at Those two first see as we mentioned Before since every transaction is Tracked on the blockchain it is Extremely easy to prove who actually Owns an ape and who doesn't so this Means it's very easy to make members Only events that require access with a Specific nft and this could range from Parties to access to clubs and Restaurants trading alpha groups and all

Kinds of things a lot more in fact some Even generate tokens upon staking for Passive income generation that in itself Could be its very own video so we're not Going to get too far into that topic but Stay tuned we will be covering this Material in the future but as you guys Can see from this chart if you buy into The right projects you can make a day's Wage staking these nfts a lot more than A day's wage in fact board ape or ape Token is rumored and expected within the Next year It's really not unreasonable to assume That there are going to be certain Holders passively making hundreds if not Thousands of dollars a day in liquid ape That's ape token from staking their apes And additionally some projects give Their holders additional nfts and Rewards for just holding certain Projects board apes have done a Fantastic job when it comes to this Because first holders were air dropped What's known as a mutant serum and this Nft could be combined with the holder's Board ape nft to create an additional Mutant ape nft for that particular Holder the current floor price for these Mutant apes you ask 17 ether keep that in mind because again We started with just a 0.08 ether mint Those that have held have been rewarded And that's clear not to mention this

Past fall holders were each airdropped In nft from the board ape kennel club The board apes companion drop and that Floor price is 8.25 eth right now okay Let's do some quick math 19 plus 8.5 Equals 27.5 ethan benefits at floor That means that if you got even a Slightly rare dog or mutant that number Rises significantly and it's probably Quite a lot higher and at this point We're talking about pretty tangible Returns with the aforementioned ape Token dropping soon for the most diamond Hands of holders that number also Doesn't include the white lists from Other projects and free air drops that Board ape yacht club holders have Received over the course of the project We still haven't even mentioned Exclusive holder events back at nft nyc 2021 the most exclusive and best party Was only accessible to holders of board Ape yacht club and m-a-y-c if you're Unfamiliar with that acronym it stands For mutant ape yacht club given the Popularity of these exclusive events we Think it's pretty safe to expect plenty More of them in the future and to add to This idea of exclusive access you need To consider the community of holders and Access you get with these nfts currently For example there are 6318 unique wallets holding a board ape Nft this ranges as we talked about from

Justin bieber to jimmy fallon all the Way to paris hilton more importantly Though holding an ape gives you access To the wealthiest most connected and Most tenured members of the nft and Crypto space and for a lot of reasons This has value of its own there are tons And tons and tons of value sitting in Members only discord servers with these Kinds of people and listening to what They're buying and selling for the right Kind of people has its own inherent Value you can't really put a true dollar Value on it in fact but the access of Holding an ape and what that grants you Really is unmatched it's not for Everybody but it certainly has a lot of Value and that's not to mention the Clout or esteem that comes with holding Some of these instantly recognizable Nfts and with twitter profile picture Verification already here some of you Yes okay may roll your eyes we get it But there is value in having Recognizable and rare profile pictures Or assets and that's where we get into The most important topic of this video Also keep in mind you need to remember That since every transaction is tracked On a chain it's really incredibly easy To find the first when it comes to Certain concepts and ideas you can just Trace them back and really find the First one because new novel ideas or

Ones with historical value in other Words will typically have insane values In their own rights they don't even Necessarily need to provide any utility If they're old enough people love owning Firsts and early editions of all kinds Of physical collectibles and souvenirs And that shift is now moving into the Digital realm it's a sign that you've Been around a little while or have lots Of money to persuade these assets away From their long-term holders crypto Punks are the best example of this the Only tangible utility to this point for Punk holders has been a free me bits Mint but the utility in this collection Is the fact that it was the first Profile picture nft collection ever made And whether or not you agree with the Spirit of it there is a lot of Historical value in that so how exactly Do we value things this is the most Important aspect of the video and kind Of how we tie everything together what Gives anything value after all what Makes a rolex more expensive than a Citizen watch what makes a lamborghini Typically more expensive than a ferrari And what makes one painting more Expensive than another especially when We get into the art world there's Subjectivity that comes into play where Do the values actually come from we Could do an entire video on consumer or

Buyer behavior and tie that into nfts But in short a few aspects do Objectively bring value to the assets we Own or may aspire to own for example the Ownership effect on its own refers to an Individual's tendency to evaluate an Object more favorably because they own Something according to the encyclopedia Of social psychology so you could Attribute some of the insane values we See on openc to this psychological Phenomenon where people tend to place Higher values on things they already own And if they own a particular nft they're Going to probably value it higher than Perhaps they should that's fine that's a Psychological trap that people fall into But it still ought to be recognized okay That's great in theory but at the end of The day someone actually needs to buy it And that's where the interesting buyer Psychology here kicks in the biggest Thing we need to remember is that the Supply of these collections is Completely fixed the board ape Developers cannot mint any new board Apes or put them into circulation in the Same way that a government could Potentially do with fiat currency only 10 000 apes from this collection exist Period and only 10 000 will ever exist And if the developers want to expand Their ecosystem as they have they need To make an entirely new line or new

Collection separate from the original Board apes collection if we want to put This into coin or token terms that we May be more familiar with on this Channel it's like if the ape developers Want to increase the supply of their Token they would need to release an Entirely new coin they couldn't just Artificially inflate the supply of the Token that would go against the Principles of the blockchain and simply Put just wouldn't work as you guys know When the supply is completely fixed but The demand keeps rising you know what Happens to the cost it's pretty simple Economics after all say only 2 000 People wanted something with a fixed Supply of 10 000 when that fixed supply Was originally released what happens When that supply stays the same but now That number of 2000 has gone all the way Up to 10 000 people wanting that same Item and then 100 000 people and then 1 Million people and so on and so forth The supply isn't growing with the demand So the current holders of the supply can Start to charge whatever they want to Give up ownership of this asset because It is in super high demand and when the Demand for this asset starts to go Parabolic then the minimum price someone Is willing to sell this same asset for Will follow that's where we get these Insane floor valuations and when there's

A fixed supply of something like say a Lamborghini maybe a rolex or even a Ferrari like we mentioned before there's Something else you also need to take Into account the clout esteem that comes With owning an asset like this may be Worth more than the asset itself in many Cases as garyvee puts it it's the same Reason people buy chanel handbags and Nike shoes people use items to identify Themselves and display their wealth it's Human nature we've always done this for Someone with new money say maybe a Crypto millionaire or even billionaire Let's ask one question they could easily Buy a rolex worth twenty thousand Dollars that maybe a hundred people in a Given day may see and recognize Or you could put a similar amount of Money into a popular nft collection and You could display it in your profile and Then if you're a particularly active Social media user so instead of maybe 100 people seeing it in some cases Thousands maybe even millions of people Are seeing that you own this asset and They're seeing that on a daily basis These are unfathomable amounts of value And so there really is a mountain of Value in some of these concepts Speculation is one final point that we Must discuss here because we're seeing Inflating values here we're seeing Unimaginable prices that boil down

Really to speculation what's happening Here is people are valuing these Projects board apes and otherwise the Same way that they value companies like Tesla and the concept of web 3 and the Metaverse isn't some hair brained idea It's actually happening and being built In front of our eyes decentraland and Sandbox are in very very early versions Of their concept and this only works When you can 100 own your digital assets And have your avatar essentially be an Extension of yourself and right now we Rent our assets when we use them on the Internet in order to be able to walk Around in there and have this ready Player one experience we need to be able To own these assets nfts give users this Ability and when people are speculating On the long-term viability of this Technology and are bullish on it prices Are going to skyrocket there doesn't Need to be an immediate value when You're speculating on the future what There needs to be is a strong foundation And building blocks for that future and If you don't think nfts and the Blockchain are exactly that for the Future of the internet and you're Bearish on this tech unfortunately We've got some bad news for you it's not Going anywhere these technologies are Here to stay because again there is an Unimaginable value in actually owning

The digital assets we use and which we Are already funneling our money into so When we start combining the utility These nfts provide the esteem and clout They come with the historical value and The speculation on the metaverse and More we start to piece together why some Of these collections are valued as Highly as they are it's not really a Simple answer there's so many aspects That we need to consider but the most Important thing to remember is these are Not just jpegs they are unique Individual keys to a more powerful User-centric internet experience this is Where we're going as a digital economy And you can either jump on the bandwagon Or run the risk of getting left behind Guys let me know your thoughts about not Only nft's non-fungible tokens but about Board 8 yacht club and the pretty Exorbitant valuations of some of these Nfts i was an nft skeptic at first i'm Still not into the whole board api club Thing to be totally honest but i do see The value in this especially when you Look ahead to where it's all going you Know cryptocurrency already is a pretty Risky pretty volatile space and nfts are Not for everybody because they are at The very edge the very fringe of what is Already a risky and volatile space so Once again guys let me know what you Think about not only nfts but bored ape

In the comments below if you're still Watching this video then like subscribe Share hit the bell to receive Notifications as a friendly reminder We're only ever conveying here our Opinions and our enthusiasms for certain Technology and certain projects but this Is never financial or investment advice But if you do like some of our opinions And you feel like banking on our Experience we've been in this space After all for over six years you may Want to consider our point of view Because we have developed admittedly a Very keen eye for potential Opportunities and you can take advantage Of that experience with the altcoin buzz Access pro plan it is a premium service Starting at 99 per month and with it you Get access to early information on all Kinds of undervalued altcoin gems you Also get technical analysis calls info About nft mint opportunities top ido's Airdrops and you can also interact with Our research experts if that's something That you want to avail yourselves of Guys check out more information which is Linked to in the description below best Of luck if you choose to invest check Out these other videos which are popping Up right about now stay safe and as Always we do hope to see you again soon In our next video take care