Let’s talk about apecoin today. We all know that ape is the token of the famous NFT Bored Ape. So here we must talk about the NFT of this boring ape, which is BAYC (Bored ape yacht club). It was launched by Yuga Labs in 2021. There are a total of 10,000 monkeys with different styles. During last year's bull market, the floor price was copied to 80-90 Ethereum. You must know that one Ethereum at that time cost 4,000 US dollars, which means that one NFT monkey is worth 2 million yuan. You must know that the mint price at that time was only 0.08 ETH (that is, the issue price). According to the Ether price at that time, it was only 1,600 yuan when converted into RMB. In less than a year, it increased 1,000 times. Even in the current bear market, the floor price of a monkey is 60E. According to the current price of 1E=1,900 US dollars, that one costs about 800,000 yuan. So why can a picture of a monkey buy a Porsche sports car?

Next, let's talk about BAYC. You should know that the pioneer of NFT should be CryptoPunks, which was released in June 2017 and is the first generation of applications on Ethereum. The series consists of 10,000 24x24 pixel art images composed by algorithms. Most of the images are clumsy-looking boys and girls, but there are also some rare types: apes, zombies, and even strange aliens.

"Cryptopunk" was developed by American studio Larva Labs, an early two-person team consisting of Canadian software developers Matt Hall and John Watkinson. The project was inspired by the London punk movement and William Gibson's novels Neuromancer, Defending Secrets, Blade Runner, and electronic music artist Daft Punk.

Now it is also the ceiling of NFT, the floor price is at least above 60E, and you can't see any orders on opensea, that is, no one is selling it. Its current status in NFT is equivalent to Bitcoin's status in the blockchain world, NO1.

Then let’s talk about a case. In domestic cases, in 2021, the Shanghai auction was CryptoPunks’ first auction in China, with a total transaction amount of nearly 20 million yuan. Among them, "Cryptopunks#6388" is a rare female character avatar. The character in the picture has a blue headscarf, earrings and green eyeshadow. In the end, it was sold at a price of 7.475 million yuan, ranking first in the sale.

In May 2021, at Christie's New York 21st Century Art Evening Auction, a set of nine NFT works "CryptoPunk" were sold for US$16.962 million, or about RMB 109 million. In June, at the Sotheby's auction, the Alien Punk No. 7523 was sold for ETH (Ether, a digital token) worth US$11.8 million, setting a new auction record for a single Punk.

So why are CryptoPunks so expensive and so valuable? Over time, CryptoPunks have come to be seen as an investment and status symbol. In fact, GMoney said he bought his CryptoPunk because he wanted the status that came with it. “With an NFT, I can quickly ‘bend’ an image by posting it on twitter and discord as my avatar… It has the same effect as wearing a Rolex in real life, but digitally,” he said.

Including Sun Yuchen also spent tens of millions to buy a CryptoPunk avatar. Many celebrities have purchased it, so this NFT has become a status symbol. You know, I am rich enough to spend tens of millions to buy a CryptoPunk. Meaningful things, do you think I have money? Just like Wang Sicong, he spent millions to install a computer, and then he ranked fourth in the world. Did he use 10% of the computer's performance? It definitely won't work, what he wants is ranking.

Then let’s talk about BAYC. Bored Ape Yacht Club (BAYC), which was launched in April 2021, is much newer than CryptoPunks. BAYC borrowed the way CryptoPunks issued a total of 10,000 avatars with random features, but BAYC took the concept to another level, turning the so-called “yacht club” into a kind of exclusive social organization, providing additional and ongoing benefits to those who accept BAYC’s vision, with substantial returns and growing prestige from celebrity holders (including every TV host Jimmy Fallon, billionaire investor Mark Cuban, NBA athletes such as Stephen Curry (BAYC #7990) and Shaquille O’Neal, and musicians such as Marshmello, Justin Bieber (BAYC #3001) and Post Malone are all BAYC holders).

Expand IP and increase community scope. For example, in the months after BAYC was released, holders of “Bored Ape” received two additional free NFTs – Mutant Apes Yacht Club (MAYC) and Bored Ape Kennel Club (BAKC). , Bored Ape Kennel Club). On top of that, they can purchase exclusive merchandise and attend a free concert in New York City featuring The Strokes, Chris Rock and other stars, souvenirs, T-shirts and more.

Two types of derivative NFT activities

Yuga Lab airdropped a bottle of serum to all BAYC holders for free. The serum level was random. There were three levels of serum: M1, M2 and Mega. M1/M2 were slightly mutated from the existing appearance, but Mega would have a significant change in appearance, so MAYC mutated from Mega serum would also have a higher value. In addition to the holders, Yuga Lab also sold another 10,000 bottles of serum at the price of 3 Ethereum per bottle (calculated based on Ethereum at the time, each bottle of serum was about $10,000), so 20,000 bottles of serum could create a total of 20,000 MAYC.

BAKC Bored Ape Kennel Club distributed 10,000 Bored Ape Kennel Club NFTs to BAYC holders for free, which is equivalent to a reward mechanism. Then this short-selling method is currently the mainstream NFT method.

Then the big breaking news is that in March 2022, Yuga Labs, the creator of Bored Ape Yacht Club, acquired CryptoPunks and Meebits. Yuga Labs said that with this acquisition, their goal is to cultivate a "community of builders" to create derivative works around the two projects. To achieve this goal, as they did with their own BAYC series, Yuga Labs began to transfer IP, commercial and exclusive licensing rights to individual NFT holders. This will enable CryptoPunks and Meebits owners to create artwork and products based on their NFTs just like BAYC owners.

Yuga's ambitions go far beyond that. They later launched Apecoin, which became the first NFT project to issue tokens. In May 2022, the Yuga team launched the fourth series: the large-scale MMORPG game Otherside, which is a virtual land series created for the BAYC Metaverse. The public will be able to purchase the NFT for 305 ApeCoins.

The grand metaverse pattern has pushed the entire BAYC market to its peak. Through this, MAYC has also reached the culmination of the metaverse, that is, full coverage of multiple elements of the NFT, Token, game, land, and blockchain world. The entire NFT world is unmatched.

Therefore, his apecoin is useful, whether it is to produce games later and turn it into game currency, or to produce land and use it to buy and sell land, or to turn the organization into a DAO and become a governance currency. You can see what he wants to do later. The team is very thoughtful and ambitious.

Because his NFT is very popular, so when he makes a game, it will naturally attract a lot of people. But it still depends on several aspects. The first is the level of the game. Since you are a large-scale MMOPRG, you at least can't be the same as the current pixel-style web games. Secondly, if it is metaverse land, you have 10,000 NFTs. If you bind the NFT to a piece of land or an account, it will limit your number of people, because 10,000 people are too few for a game. I don't think he will do this. It can only be said that if you have BAYC's nft, you may have a VIP system like this.

Finally, let's analyze APEcoin. Its current market value is 1.4 billion USD, with a price of 2 USD per coin and a total of 1 billion coins. It ranks 38th in market value, far exceeding the 1.1 billion USD of Decentraland and 800 million USD of Axie we mentioned earlier. It is also far exceeding the 300 million USD of the game platform Gala and 270 million USD of Magic. It is true that you are famous, but the first two are GameFi bosses in the last bull market, and the latter are game platforms with dozens of finished games. You have nothing yet, but your value is so high, which is still a bit inflated.

If you measure it from the perspective of your NFT, opensea's transaction tax is 2.5% for 10,000, BAYC2000ETH, MAYC800ETH, OTHERDEED300ETH, then the total daily average transaction volume is 3100ETH, which is 1.13 million ETH per year.

Then the annual income from royalties is 28,000 ETH. According to 1 ETH = 1,900 US dollars, the annual income is more than 50 million US dollars. But we know that the market is generally normal. I found data showing that in 2021, Nansen calculated the total income to be 147.9 million US dollars). Of course, 2021 is a bull market, so I will take an average annual income of 100 million US dollars. In fact, this is already a very good annual income. You can earn royalties by lying down without doing anything. 100 million US dollars a year is so scary. If you look at it this way, the market value of 1.6 billion US dollars is really not high. You can look at the projects we analyzed before, LDO has a price-earnings ratio of hundreds of times. This is only 16 times, not high or low, so if you look at it this way, if it can reach a market value of 1 billion US dollars, the price of about 2.5 will be very good. Of course, at this point, there is actually not much difference, so the current price of this currency is definitely in the low area of ​​​​value.