Why do people buy NFTs?
Just when you think a pixelated cryptopunk was sold for 8,000 Eth and an ape jpeg was sold for 100Eth .. and you think to yourself : OMG, that is crazy!
On 14 March 2022, Yuga Labs (creators of Bored Ape Yacht Club) acquired Larva labs (Cryptopunks and Meebits). With this move, Yuga Labs now has a collection of the two most valuable NFT projects in the world!
Subsequently, Yuga Labs raised $450million in seed round, led by some of the biggest name in the crypto world, a16z, Animoca Brands, Coinbase, FTX and MoonPay. This round of fund raising puts Yuga Labs in a valuation of $4 billion.
It doesnt stop! Then, BAYC announced its own cryptocoin, $Apecoin, that was airdropped to its BAYC holders and other NFTs related to BAYC. Apecoin was available for trading across all exchanges simultaneously on 18 March 2022.
BAYC was first minted for 0.08 ETh in April 2021 ($192) and as of today, the ROI for HOLDING a BAYC is a staggering 2,484%. This ROI is gonna multiply not only because the BAYC community is building a game powered by the $Apecoin but also because more Big Ballers (corporates and venture capitals) are joining the BAYC community.
There are many reasons to buy/own an NFT other than this amazing return of holding an Ape jpeg.
Why should you buy an NFT?
- Buy it for Art.. you just like the art and would like to support the artist. Pak is arguably the most expensive living artist. It is a sort of investment because art pieces by notable artists hold their value
2. Buy it for Utility.. Fashion houses & luxury goods maker issue digital collectibles which provide exclusive merchandise or discounted products.
3. Buy it for Gaming Characters/ Gaming Items.. to play the game well, you need to buy characters or items with rare specialities to Play 2 Earn.
4. Buy it to Earn Crypto though holding Virtual Property in the Metaverse… one needs to own a virtual property to qualify for tokens and/or to rent out for tokens. For example, Sandbox.
5. Buy it be part of a Web3 community & support a cause.. NFT holders can be part of and vote on community-driven features. Community products and events can be funded by the community treasury. For example, World of Women is a community that celebrates representation, inclusivity and equal opportunities for all. It is a membership to the certain community who gather, help each other and support each other.
Lastly, the BAYC community has become so popular that some people get one glorified ape to be their digital identity, as most of us non-ape holders look with envy as we browse the social media….