The Bored Ape Yacht Club is a collection of 10,000 unique Bored Ape NFTs— unique digital collectibles living on the Ethereum blockchain. Your Bored Ape doubles as your Yacht Club membership card, and grants access to members-only benefits, the first of which is access to THE BATHROOM, a collaborative graffiti board. Future areas and perks can be unlocked by the community through roadmap activation.
According to the Bored Ape Yacht Club (BAYC) website, the NFT collection was created by four friends who "set out to make some dope apes, test [their] skills, and try to build something (ridiculous)." Bored Ape NFTs, like other NFTs created and used for digital art purposes aim to provide its owners the "original" artwork. Bored Ape NFTs owners are considered in possession of "a unique unit of data recorded in a digital blockchain, which permanently records its provenance or sales history."
The collection exists on the Ethereum blockchain and contains 10,000 unique NFTs. The NFTs dually function as a membership card to Yacht Club. Membership to the club includes access to "The Bathroom" (stylized in all caps), a digital graffiti board. The NFTs were originally sold for 0.08 ether each, around $190 at the time of their April 2021 launch.
As BAYC "has made it clear that NFT holders have full commercialization rights to their ape," Bored Apes differ from other NFTs in that "whoever owns a Bored Ape can spin it into whatever film, music, TV, book, or media project they want."
The team behind Bored Ape Yacht Club plans to use the money to build a media empire around NFTs, starting with games and its own metaverse project. The team describes its metaverse project, called Otherside, as an MMORPG meant to connect the broader NFT universe.
1.0 Capital Advantages
In its initial run, the BAYC made around $2 million. From there, prices went up. Auction house Sotheby’s recently sold a set of 107 apes for over $24 million. Gwyneth Paltrow, Eminem, Shaquille O'Neal, Post Malone, Snoop Dogg, Mark Cuban, and Steph Curry belong to a growing group of celebrity boosters. During a recent Tonight Show interview, Jimmy Fallon and Paris Hilton hyped ape ownership in a conversation with the stiff, cheery cadence of a bad infomercial. Between the two of them, they’d paid more half a million dollars to join the club.
Although there are many NFT projects, BAYC is one of the few that is actually here to stay, and the reason is simple. Capital advantages.
Cash is the lifeblood of a business, and a business needs to generate enough cash from its activities so that it can meet its expenses and have enough left over to repay investors and grow the business. While a company can fudge its earnings, its cash flow provides an idea about its real health.
Furthermore, having billions in investments provide the opportunity to substantially grow the business, unlike competitors. In such cases, capital advantages act as a serious barrier to entry.
1.1 Barriers To Entry
Barriers to entry is an economics and business term describing factors that can prevent or impede newcomers into a market or industry sector, and so limit competition. These can include high start-up costs, regulatory hurdles, or other obstacles that prevent new competitors from easily entering a business sector.
The extant literature highlights six major barriers to entry: cost advantages of incumbent firms; capital requirements; product differentiation advantages of incumbent firms; access to distribution channels; customer switching costs; and government regulations (Karakaya & Stahl, 1989.)
Definition of Barrier to Entry | Higher Rock Education
KEY RESOURCES & READINGS:
Barriers to Market Entry - advantage, type, cost - Reference ...
https://www.referenceforbusiness.com › small › A-Bo › B...
Capital Requirements and Barriers to Entry | SpringerLink
https://link.springer.com › chapter
Bored Ape Yacht Club - Collection | OpenSea
https://opensea.io › collection › boredapeyachtclub
Bored Ape Yacht Club (@BoredApeYC) / Twitter
https://twitter.com › boredapeyc
A Guide to Bored Ape Yacht Club NFTs: What is BAYC?
https://nftnow.com › guides › bored-ape-yacht-club-gui...
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