Just when you thought we were at the apex of NFTs (non-fungible tokens), the ceiling gets even higher. A collection of 101 Bored Ape Yacht Club (BAYC) NFTs just sold for $24.4 million at a Sotheby's auction.
Will the buyer get their value back in the long run, and what does this hefty sale mean for the future of NFTs?
What are Bored Ape Yacht Club NFTs, and why are they so expensive?
Much like CryptoPunks and EtherRocks, Bored Ape Yacht Club NFTs are a limited collection of 10,000 apes. Each is adorned with unique accessories, such as necklaces, eye patches, and sailor hats. Aesthetically, the ape images are reminiscent of a Gorillaz music video.
According to the website, "The token itself doubles as your membership to a swamp club for apes." —and that club feels like a twisted version of Club Penguin.
Bored Ape's NFT set is among the priciest ever sold
The bundle of 101 Bored Ape Yacht Club NFTs sold in a Sotheby's auction for $24.4 million collectively. Meanwhile, a second set of 101 NFTs, this time from Bored Ape Kennel Club, sold for $1.8 million.
Yuga Labs, the creator of BAYC, facilitated the sale. BAYC NFTs first came onto the scene in Apr. 2021, which makes them a lot younger than competitors such as CryptoPunks, which started in 2016.
Despite its novelty, Bored Ape is on CryptoPunks' tail. In May 2021, nine cryptopunks sold for $16.9 billion, and in Mar. 2021, an artist named Beeple sold one originally designed NFT for $69 million. It's hard to compare each NFT's true value given that their bundle sizes vary, but it's clear their prices are seeing major growth.
Why the Sotheby's NFT auction is a big deal
Art is only worth what people are willing to pay for it, and when it comes to NFTs, people are clearly willing to pay a lot. Following the $24.4 million sale, all of Bored Ape's NFTs are swelling in value. Currently, the cheapest one you'll find is going for at least $149,000.
All of this means that people who are buying NFTs now believe that the digital assets' value will increase even more with time. Meanwhile, Sotheby's has been around for hundreds of years (it was founded in London in 1744), and is adapting well amid the changing art and auction landscape.
Want to buy a BAYC NFT? You're not alone
BAYC NFTs are available on the OpenSea marketplace for sale or auction. The images are currently selling for ETH, WETH, DAI, and USDC.
Christie's, an equally esteemed auction house that competes with Sotheby's, will be featuring an NFT auction for BAYC later in Sep. 2021. Even those who aren't betting may want to watch if more price records are broken.