Digital collectibles are still on the rise
With just one NFT sale, a photographer has made a whole $1.4 million profit.
Since the bored-looking monkeys in Cartoon Art were released in April 2021, they have caused a sensation. Some perceive the works of art as childish, the others are very enthusiastic about it. No matter what one’s opinion, the cheapest Bored Ape now costs several hundred thousand dollars. But how did it come about and why are NFTs traded so high? We will get to the bottom of this question and many more in the following.
What is the “Bored Ape Yacht Club” (BAYC)?
The Bored Apes Yacht Club is a collection of 10,000 unique tokens (NFTs). They are digital collectibles based on the Ethereum blockchain. Around 170 unique features with varying degrees of rarity make the monkeys unique pieces. The creators have combined these different features to create a limited series of unique NFTs. In order to get to know this topic in depth and earn money from trading, you should first learn how to trade cryptocurrencies . So you will be slowly introduced to the topic and benefit from the many possibilities.
NFTs get functions
Each NFT has an exact address, which is stored in the owner’s wallet, through which the work can be identified. In this way, it can be proven that you are the sole owner. Nowadays, NFTs are mainly used as collectibles or game items for video games. The BAYC NFT also acts as a membership card for the virtual yacht club and guarantees access to exclusive benefits.
As a result, you will receive many benefits and benefit from special access. A large community has also formed around this collection, which is organized in the largest cities of the world. Very well-known artists perform at their own parties for the members, meanwhile there is even a separate festival weekend for the owners.
Rights of use of NFTs
The rights of use of NFTs vary depending on the collector’s item. At BAYC it is the case that the owners have the full rights for the marketing and licensing of the monkeys. So you can exercise your full rights for this. The creators give up all their rights when selling. The new owners are therefore also allowed to use the characters for different projects, for example to create new values or content. Some owners have developed a background story around their monkeys and thus created completely new identities.
This has enabled an independent ecosystem: entire clothing lines, music, coffee brands or other types of merchandise have already been created via BAYC. The NFTs provide all-round new opportunities on the various media platforms, including music, games, television and more. However, the individual originals are always preserved, but the intellectual property around the monkeys can be constantly developed and passed on.
Emmy-nominated photographer John Knopf sells BAYC
Emmy-nominated photographer John Knopf sold his BAYC NFT on December 13. For this he received 347 ETH, originally he paid only 0.08 ETH for the monkey. So the sale takes him a total of 1.39 million dollars in profit.
Million Dollar Mistake
However, when buying, a big mistake initially occurred: so, the monkey was bought for 655 ETH, since in addition to the offer price, 230 ETH was sent to the seller. The buyer said that in addition to the offer, he had to move 230 ETH to another wallet on the phone. However, he did not postpone this, but sent the money to Knopf. He then tells the story to him and got the 230 ETH, which is about 920,000 dollars, back again. Both then agreed on a purchase price of 347 ETH. These errors are not uncommon in ETH sales, so a mutated monkey was last sold for 17 US dollars, instead of 17 ETH. That makes a difference, of more than $60,000.
If you are interested in the topic and you would like to deal with it further, then you should first learn how to trade crypto currencies. This will give you a basic understanding of this digital topic and you can then also design your own NFTs or buy them.
Image Source: https://www.pexels.com/de-de/foto/ripple-etehereum-und-bitcoin-sowie-micro-sdhc-card-844124/