Letter 4 - Let's talk about Apes (part 2)

Community, community, community

If you haven’t read part 1 then I recommend doing that before digging into this letter, as I am picking up right where I left off: the community. We have established (I think) that it is valuable to be part of a connected web of like-minded individuals, ala being a member of the BAYC. There is strength in numbers. The community knows this and are banding together to strengthen their ties to one another, as well as helping bring new apes into the club. Have a look at what the largest holder of Apes (Pranksy) just did for someone that reached out to him on twitter:

Pranksy 📦 @pranksyNFT

DONE DEAL: When @TwixNFT approached me letting me know he was new to the #NFT space and would i consider trading a @BoredApeYC for a collection of rare old rap CDs / Tapes and a promise of a BBQ & Tacos if I ever visit Texas, how could i refuse? #WelcomeToNFTs

That was far from the first ape to be given away too (it was not even the first by Pranksy). When someone gives away an ape they are all but literally giving away thousands of dollars. The ape community is generous, and it is welcoming. It knows that there is strength in numbers. You can clearly see this by looking at the number of people that hold at least one ape - currently sitting at 3,821 (out of 10,000 total apes) and the average number of apes held per owner (2.62). Compare this to some other projects:

It really is quite remarkable. Apes understand that a community of 10,000 ape holders is exponentially more powerful than a community of 1,000 or 4,000. We are semi-collectively working towards finding every ape its “forever home”. Herein lies the paradox - as more eyes (and money) look towards apes, the price goes up. Supply and demand can’t get any more simple. Apes understand the value of their apes, and are not necessarily willing to let them go cheaply. This makes it tougher for the ape-less to get their hands on an ape. So, what’s the solution?

Well the very easy answer is to find people willing to spend more and more to buy up apes. You might think this is hard, but when NBA stars start aping in, the sky really does seem like the limit. Over the last 24 hours the ape world has been flying high on the news that the Charlotte Hornets star LaMelo Ball is now one of us (one of us! one of us!)

Shortly after Ball aped in, fellow NBA player Josh Hart tweeted this:

And it wasn’t long before…

The reach of the apes truly knows no bounds. Okay - so people with deep pockets want in. We’re all good then? Well, maybe. My personal view is that the founders of the club are thinking of a big picture way to include more members into the club. They have announced that there is going to be some form of “breeding” introduced. I am speculating that this will create derivatives of apes that can then be sold to new members at a much lower price point, thus allowing a wider audience access to the club. 10,000 apes is great. 100,000 apes is epic. The OG apes will hold and appreciate in value (scarce supply), and additional value will be introduced to the ecosystem via the new apes and members. This is still just me speculating. We will have to wait and see what ends up happening - regardless, the apes have a bright future. The community is strong.

There is still a lot more that can and will be written on apes, but that’s another letter, for another day. My next few letters are likely to be on different NFT projects, but I am sure to come back to the apes for part 3 eventually. I’ll leave you with a look at a few of the cool things the ape community is getting up to:

There’s the bored ape book club (the first book is, naturally, Planet of the Apes) and the bored ape chess club that have both been recently founded. There’s a group of apes dedicated to buying up virtual land in The Sandbox metaverse to secure an area for future apes:

The tiny squares are 1x1 plots of land. The official ape clubhouse is near the center with the BAYC logo (white skull). Every ape image is land secured by a member of the BAYC

Apes are starting to invade the “real world” too. We saw our first Ape billboard on Memorial Day Weekend out by the Hamptons:

There are even sub-groups forming among the apes, such as the Cheetah Gang:

who are creating narratives of their own. Given the full commercial rights given to each ape owner (of their own ape), people are really getting creative. This is just the beginning for the apes, but it’s also still just the beginning for all of us. The NFT space is ripe with opportunities. Not every project is going to be a hit like the BAYC. Some will fail. Most will fail. One of my goals with this Newsletter is to explore upcoming projects and to attempt to filter through the noise and find the gems. I won’t always be right, but I will do my best to present you with valuable information. I’m learning how to navigate this space along with the rest of you. The one thing I know for sure though is..

We’re still early.

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Disclaimer: The content covered in this newsletter is not to be considered as investment advice. I’m not a financial adviser. These are only my own opinions and ideas. You should always consult with a professional/licensed financial adviser before trading or investing in any cryptocurrency related product.