Bored Ape Yacht Club (BAYC) Research Report (Part 1): Project Analysis and Evolution

·

Investment Overview

The NFT market exploded in 2021, with trading volume growing hundreds of times compared to 2020. NFT profile picture (PFP) projects currently account for approximately 70% of NFT transactions, closely linking them to the metaverse sector. In the metaverse, NFTs serve as the underlying technology and virtual avatars.

Bored Ape Yacht Club (BAYC) is an NFT PFP project featuring a collection of 10,000 unique "bored ape" characters, each with varying expressions and accessories. Beyond PFPs, BAYC has cultivated an active community culture, established strong brand recognition, and acquired legacy NFT projects Cryptopunks and Meebits, solidifying its position as the leader in NFT PFPs. It then launched ApeCoin DAO, introducing the APE token to build a metaverse ecosystem encompassing NFTs, blockchain gaming, and more. BAYC bridges the gap between NFTs and the metaverse, seeking new growth opportunities.

BAYC is fundamentally a decentralized community brand built on NFT technology and blockchain principles. Its value lies in community consensus and brand equity—a new form of brand ownership shared by the community rather than a single corporation, enabling broader participation.

Key factors behind BAYC’s success include:

  1. High-quality artwork: Aesthetics form the foundation of the project and serve as cultural symbols.
  2. Strong execution: Yuga Labs demonstrates relentless drive, expansion, and openness, delivering products that meet or exceed community expectations.
  3. Powerful community: BAYC leveraged media and marketing to connect with WEB2 celebrities (entertainment, sports), amplifying its brand.
  4. Open IP licensing: BAYC grants commercial rights to NFT holders, encouraging derivatives and organic marketing.

After dominating the NFT PFP space, BAYC pivoted to the metaverse via ApeCoin DAO, aiming to create a platform with games and ecosystem projects. Current metaverse leaders like Sandbox and Decentraland struggle with weak content, slow ecosystem growth, and low interactivity. BAYC’s strength lies in its IP-driven community, which excels in content creation—potentially giving ApeCoin DAO an edge.

Market expectations for ApeCoin DAO are high. However, metaverse development involves platform infrastructure, game development, partnerships, and tokenomics, requiring significant resources. Track ApeCoin DAO’s progress, including activity levels and tokenomics sustainability. Additionally, Yuga Labs faces organizational challenges as it scales from a startup to a mature company.

In summary, Bored Ape Yacht Club remains a project to watch.

Project Breakdown

Team

BAYC was created by Yuga Labs, founded in February 2021. The core team initially operated anonymously but now includes:

  1. Gordon Goner (Co-Chair): Crypto trader since 2017.
  2. Gargamel (Co-Chair): UVA graduate, ex-literary editor.
  3. NoSass (CPO): Remains anonymous.
  4. EmperorTomatoKetchup (CTO): Remains anonymous.

Later additions:

Yuga Labs positions itself as a WEB3 company exploring identity, ownership, and utility via NFTs.

Funding

In March 2022, Yuga Labs raised $450M** at a **$4B valuation, led by a16z, with participation from Coinbase, Adidas, and The Sandbox.

Product

  1. Creativity: Inspired by "boredom," "apes," and "exclusive clubs," the artwork conveys existential ennui.

  2. Series:

    • BAYC: 10,000 apes.
    • MAYC (Mutant Ape Yacht Club): 20,000 mutated apes (via serums).
    • BAKC: Companion dogs airdropped to BAYC holders.

  3. Rarity Design:

    • Traits like gold skin, laser eyes, and VR goggles drive scarcity.
    • Clean "4T" apes (4 traits) command premiums.

👉 Explore BAYC’s official site

Development Timeline

| Key Milestones |
|----------------|
| Apr 2021: BAYC launch (0.08 ETH mint). |
| Aug 2021: MAYC release. |
| Mar 2022: Cryptopunks/Meebits acquisition; APE token launch. |

Current Status

Future Plans

  1. ApeCoin DAO: Funds games, events, and an NFT marketplace.
  2. Metaverse Land Sales: 200K plots (1 ETH each).
  3. Game Development: Allocating 3.2% of ecosystem funds (~$200M).

FAQ

Q: Why is BAYC so expensive?
A: Scarcity, celebrity endorsements, and community utility (e.g., metaverse access) drive value.

Q: How do I buy a Bored Ape?
A: Purchase via OpenSea or OKX’s NFT marketplace.

👉 Trade APE tokens here

Q: What’s next for Yuga Labs?
A: Expanding the APE ecosystem with games, virtual land, and partnerships.

This concludes Part 1. For deeper analysis on tokenomics and risks, read BAYC Research (Part 2).