Justin Bieber paid $1.3 Million for an NFT of a Bored Ape: Early this year, the Bored Ape Yacht Club was all the rage as celebrities “hopped into” the expensive Ethereum NFT collection. Some people have even made products, themed restaurants, live shows, and other things with their Apes.
But the buzz has died down because of the crypto bear market, and in recent weeks, the price to join the exclusive club has been going down. A “floor” Bored Ape, like the one that Justin Bieber paid $1.3 million in ETH for in January, now sells for a tiny fraction of that price.
At the time this article was written, the floor price for the Bored Ape Yacht Club, which is the price of the cheapest NFT listed on a marketplace, was about 58.2 ETH, or about $69,800, according to data from NFT Price Floor. Monday was the second time this month that the floor price went below $60,000. On Tuesday, though, it went back up slowly throughout the day.
The Bored Apes have had a rough November. Since the beginning of the month, the floor price in USD has dropped 33%. The collapse of the popular crypto exchange FTX last week seems to have had an effect on the NFT market, driving down crypto prices and affecting NFT valuations, but other notable projects aren’t getting hit as hard as the Apes.
Yuga Labs also owns CryptoPunks, a “blue chip” NFT project whose floor price has dropped by 23% this month to about $79,800 (66.5 ETH) in November. The price in ETH is almost the same as it was on November 1. What has changed is the price of ETH in USD. On the other hand, the Bored Ape floor has gone down from 66.6 ETH to 58.2 ETH, and on Tuesday morning it was as low as 48 ETH.
The Bored Ape floor hit a high of about $429,000 (152 ETH) in late April, just before the crash of the cryptocurrency market. This was because of the excitement surrounding the release of NFT land plots for Yuga’s Otherside metaverse game. The March launch of ApeCoin had just paid off for bored Ape owners, and they were about to get free land on the Otherside. This made the NFTs look like gifts that kept on giving.
But the crash of cryptocurrencies led to less and less speculation on NFTs, which has caused the price of Bored Ape to drop a lot in the past six months. In USD, the cost to buy a Bored Ape today is about 84% less than it was at its peak in April.
An NFT is a blockchain token that represents ownership of an item, like the Bored Ape Yacht Club or a unique profile picture (PFP). The project’s 10,000 NFT avatars give users access to a private community and events, as well as exclusive merchandise, possible future NFT and token drops, and the ability to sell their own NFT artwork.
After a rush of buys in late 2021 and early 2022 that brought people like Jimmy Fallon, Steph Curry, Madonna, Eminem, Gwyneth Paltrow, and Snoop Dogg into the club, we haven’t seen any big names flooding into the project recently.
Some of the seven-figure Bored Ape purchases stand out even more now that the prices have gone down. One famous example is when singer Justin Bieber bought an ape for $1.3 million (500 ETH) in January. At the time, crypto influencers said he paid too much for an ape with very common traits.
Farokh Sarmad, the co-founder and host of Rug Radio, tweeted, “Who [the fuck] is advising Justin Bieber’s NFT purchases, and how can I get in touch with them to sell them [floor] NFTs for 500 ETH?”
Based on its traits and features, Rarity Tools ranks it as the 9,810th rarest Bored Ape. This means that if it wasn’t tied to a famous person, it would probably sell for floor price.
Today, a similar Ape might sell for almost one-ninth as much in ETH, or almost one-ninth as much in USD. Bieber’s purchase may have been the peak of the celebrity Bored Ape boom, even though owners like Eminem and Snoop Dogg have continued to use their Apes in public.
The falling prices seem to be making sales go up, though. According to data from CryptoSlam, $6.5 million worth of Apes were sold on Tuesday, which is 135% more than the day before.
A fake crypto analyst named Punk9059, who is the director of research for NFT startup Proof, tweeted that the Bored Ape floor price tends to go down when owners worry about NFT liquidations from BendDAO, an NFT lending service. However, when sales go up and people buy up the NFTs, the floor price goes back up.
They also talked about the effect of Blur, a new NFT marketplace for “pro traders” that doesn’t charge a marketplace fee or make creators pay royalties. Punk9059 said that this kind of situation makes Bored Ape traders “do a lot more flips.”
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