The Business Of Bored Apes

GM frens,

This is the very first edition of The Ground Floor.

A weekly NFT newsletter from the Floor Community where we break down all of the amazing things happening in the Web3 World.

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The Business Of Bored Apes

Breaking down the billion dollar Web3 startup taking the world by storm…

In 2021 four founders wanted to build a brand.

Together, these 4 founders built a brand called Bored Ape Yacht Club (BAYC).

The company they founded has since become Yuga Labs — the now parent company of Bored Ape Yacht Club, CryptoPunks & Meebits.

Together, these 3 collections have a combined market cap of $10 billion USD.

The Business Of Bored Apes

Yuga Labs has built a cash printer.

Since they launched one year ago, they have made:

• 800 ETH / $2,311,000 from the initial 10,000 BAYC sale

• 30,000 ETH / $88,911,000 from the initial 10,000 MAYC sale

• 2,307 ETH / $6,665,822 in royalties from BAKC secondary sales

• 8,650 ETH / $24,993,223 in royalties from MAYC secondary sales

• 12,875 ETH / $37,200,896 in royalties from BAYC secondary sales

• 1,255 ETH / $3,626,184 in royalties from Chemistry Club secondary sales

Total = 55,887 ETH / $165,633,000 🤯

Bored Apes’ Birthday

This week, as Bored Ape Yacht Club celebrated its one year anniversary of the release of its original collection, the original 10,000 Bored Apes collection reached an all time high, with the lowest priced Bored Ape costing 145 ETH.

• 145 ETH = $418,500

In addition, the lowest priced token from the 10,000 Bored Ape Kennel Club collection was 12 ETH, while the lowest priced token from the 20,000 Mutant Ape Yacht Club collection reached 37.5 ETH.

• 12 ETH = $34,638

• 37.5 ETH = $108,244

Yuga Labs Valuation

In March, Yuga Labs raised $450 million from investors at a valuation of ~$4 Billion. 

Andreessen Horowitz led the round, which valued Yuga Labs at $4 billion USD, with participation from Adidas, Google Ventures, Snoop Dogg, Mark Cuban, Steve Aoki, Samsung & others.

With this $450 million USD in venture capital, plus the 55,887ETH in revenue which is currently worth $165,633,000 USD, Yuga Labs is flush with cash which they intend to use to build their own digital economy.

Building An Economy

In March, Yuga Labs encouraged people to sign up for its upcoming drop, however, you had to verify your identity.

With certain people in the crypto community choosing to be more protective about their privacy and identity, the project stirred some controversy as a result of requiring people to disclose their identity to Yuga Labs.

For the people who were willing to reveal their identity, signing up was a no brainer.

After all, the same company released a project this time last year that cost 0.08 ETH — around $180, which has so far delivered close to $700,000 USD in value to the people who purchased these tokens.

Looking Forward

Bored Ape Yacht Club, and Yuga Labs have something many NFT projects lack — momentum, and the company shows no signs of slowing down.

With the upcoming land sale, if only 50K people buy land in their metaverse (there will likely be many more) at the speculated price of 300 ape tokens then Yuga Labs would generate an additional $315,000,000 USD in 2022.

This is an incredible achievement for any company, let alone a company that was founded a little over a year ago.

3 Things You Need To Know

1) The Future Of Sneakers…

RTFKT’s MNLTHs were finally cracked open.

Inside them, holders were given another MNLTH (called MNLTH 2), a Cryptokicks digital sneaker and a vial.

The vials are what makes this really cool. Holders are able to equip them to their Cryptokicks to get a limited edition skin for their sneaker.

Since 2010, Nike's share of revenues from footwear has risen from 11% to 28%. Not exactly hypergrowth…

It’s no surprise that they are leaning heavily into digital assets that are not inhibited by supply chain issues, and that can also create cashflow to the company when they are resold.

2) Moonbirds Goes To The Moon…

Moonbirds, PROOF Collective’s first PFP drop, has gone absolutely ballistic.

PROOF was co-founded by Kevin Rose, Justin Mezzell and Ryan Carson.

The PROOF Collective NFT floor is currently 119 ETH.

So it was no surprise that when they launched Moonbirds, at a 2.5 ETH mint price, things were going to go a little bit nuts.

And, well, they did.

10 days after launch and banking $75m via mint, Moonbirds sit 9th in the *all time* charts for volume on Opensea, with 117k ETH in trading volume so far.

Yes, you read that correctly, all time.

The floor is currently 27.5 ETH.

Everything was going smoothly for Moonbirds up until their COO, Ryan Carson, announced his NFT fund, 121G. It’s a $30m NFT fund.

*pause*

Launching a $30m NFT fund days after minting out a $75m collection is one thing…but Ryan was also accused of buying high rarity Moonbirds pre-reveal by a plethora of people on social media.

Kevin Rose denied that this was true, but it coincided with Ryan leaving PROOF to focus on his fund.

Kevin and PROOF followed it up by announcing a $10m equity raise led by 776, Alexis Ohanian’s fund.

Never a dull day in the Web3 World, right?

3) Not So Smart Smart Contracts

Blockchains are not forgiving.

Aku is a project by former Baseball player Micah Johnson.

Micah created this project after hearing a young boy ask “can astronauts be black?”

The story is powerful and the creator is legit and incredibly talented.

There was a fatal error however in the smart contract where the totalBids number exceeded the refundProgress number.

The project has still seen good volume and a solid floor price. So whilst blockchains aren't forgiving, people are. At least to those who are talented, authentic and have created something people resonate with.

Tweet of the week

Matty DCL Blogger makes a fantastic point here.

NFT collectors and traders are really impatient. Good things take time.

From The Floor Community

Alpha from the Floor community - 

Avius Animae was brought into the Floor Community #alpha channel right after a 0.01 ETH mint out. The floor price was just under mint sitting at 0.009 ETH.

Floor community members loved the art and started buying up the floor.

Many members within the Floor community began setting their discord profile pictures to their favorite Avius NFTs.

The collection was created by John Jannuzzi, a Floor community member and 50% of Mint Profits to Benefit LGBTQIA+ community.

MEETUPS MEETUPS MEETUPS -

Be sure to turn notifications on for the #meetups channel in discord. The Floor community has been hosting events in LA, NYC & The United Kingdom!!

Thanks for the read,

See you next time! — 0B1, Pet & Corwin.

This newsletter is for informational purposes only and does not constitute financial or business advice to any person or entity.