The New Metaverse of the Bored Ape Yacht Club Demonstrates the Growth of NFTs

The New Metaverse of the Bored Ape Yacht Club Demonstrates the Growth of NFTs
pic credit: Yuga Labs

Last year, cryptocurrencies such as Bitcoin and Dogecoin reached all-time highs, but 2021 will be the year of the nonfungible token. Last year, almost $25 billion was spent on NFTs, a few billion more than the global box office took in. Despite — or perhaps because of — that astounding statistic, NFTs have a bad reputation. Most people are either perplexed by the exorbitant prices NFTs command or persuaded they’re a ruse about to fall apart. NFT purchasers are viewed by critics as suckers who pay for JPEGs that they could easily “right-click-save” for free.

For a long time, that refrain will be correct. NFTs are changing in 2022, for better or worse.

Yuga Labs, the company behind the Bored Ape Yacht Club NFT collection, revealed a new valuation of $4 billion on Tuesday, after raising $450 million to build a metaverse. That sentence would have been incomprehensible a year ago. It’s now a forerunner of the next phase of NFTs, which are evolving from art collections to self-contained ecosystems.

The NFT collection, a set of 10,000 apes designed to be used as profile images, made Bored Ape Yacht Club popular. The cheapest Bored Ape currently advertised on NFT marketplace OpenSea is $300,000. They first went on sale in April for roughly $200 each. BAYC, as well as CryptoPunks, CyberKongz, and World of Women, have become status symbols, fetching tens of thousands of dollars. Using a Bored Ape as your profile photo is the crypto equivalent of putting on a Rolex for a big meeting. It’s also grown into an offline brand. Fashion collaborations have been formed, magazine covers have been ornamented, and Neil Strauss is working on a book.

The launching of Ape Coin, Yuga Labs’ own cryptocurrency, was the company’s most recent action. It was a watershed moment for the owners of the Bored Ape Yacht Club. Owners of Bored Ape Yacht Club NFTs received 10,094 free Ape Coin tokens, a contribution worth nearly $118,000 per Ape, demonstrating Web3’s craziness. Ape Coin, more significantly for the company’s goals, is a cryptocurrency with a market cap of $11 billion. That implies there’s a lot of money to be invested in Yuga Labs’ ecosystem.

Otherside will be an MMORPG game in which users can utilize their NFTs as in-game personalities or avatars, according to the teaser clip. Yuga Labs hopes to make $178 million from land sales this year, according to a leaked presentation deck. The specifics are unknown, but Yuga Labs CEO Nicole Muniz told The Verge that the universe of The Otherside is being developed in collaboration with many game firms. According to the pitch deck, Otherside will be “a metaverse that renders all existing metaverses obsolete.”

A concept called Web3 is at the heart of the shift from art collection to the ecosystem. The future iteration of the internet is referred to as that by crypto enthusiasts. Web1 represented the 1990s’ static pages, while Web2 represented the social media revolution that transformed users into creators. Web3 is a blockchain-based internet that incorporates Web2 while also allowing individuals to own the material and data they create.

NFTs play a role in this. Despite the fact that NFTs have come to be associated with digital art, their primary purpose is to verify ownership of a digital item. A video, a song, or an in-game item can all be used as assets. The use of cryptocurrencies allows you to trade digital assets for cash. Finally, metaverses give a setting in which these technologies can be used. Hundreds or thousands of people can visit these enormous, open worlds at any given moment. They’ve been around for a while (think Second Life or even Fortnite), but the crypto community is reimagining them.

Imagine Second Life, the simulator of real life that had a moment in the ’00s, but where you own your avatar’s clothing and belongings in the form of NFTs. You can sell them to another user to receive your money back once you’re done using them. Even better: you could create unique products that could be sold for a profit if they gain cultural clout in the community. Services might be delivered within the metaverse for which you would be paid in bitcoin, such as architects developing virtual buildings. Plots of land can be sold, and the owners can do whatever they want with them, including erecting billboards and getting paid to put ads on them.

It’s essentially the birth of a new economy. That is, at least, the hope. Sandbox and Decentraland are two Web3 metaverses that are either live or under development, but none have been able to pique the interest of those who aren’t already invested in crypto and NFTs.

Also Read:

16 Important facts about NFTs that you probably don’t know

What NFT could mean for the future & How will NFT change the world?

What are NFTs & What is the point of buying an NFT? Fully Explained

Most NFT initiatives claim to want to be part of the metaverse and issue their own tokens to do so. The majority of these enterprises are hoaxes, and some aren’t successful enough to deliver on their promises. Yuga Labs is unique in that it has the resources to build a metaverse: a brand that has transcended NFT culture, a cryptocurrency with a large market cap, and enough cash to hire a team of world-class game designers. But now comes the difficult part: creating a universe in which people want to spend a lot of time.

In metaverses, time is the true money. Metaverses, like social media, can be used for advertising. People can spend money on digital things in the same way they may spend money on video games. Advertising, on the other hand, is only effective if enough people pass through the space, and digital objects are only useful if the world around them has meaning. For a group of ape avatars, creating that world is an unlikely next step.

It remains to be seen whether Otherside develops into a worthwhile metaverse. But one thing is certain: you won’t be able to right-click-save whatever Bored Ape Yacht Club is by the end of 2022.

Source Link

Leave a Reply

Your email address will not be published.