Invest Like the Best with Patrick O'Shaughnessy

Bored Ape Yacht Club - [Web3 Breakdowns, EP. 1]

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Nov 18, 2021

In this engaging discussion, Eric Golden, a former Fidelity portfolio manager and proud Bored Ape owner, dives into the Bored Ape Yacht Club phenomenon. He discusses how NFTs are building unique membership communities and not just digital art. Eric shares insights on the complexities of NFT valuations, IP ownership, and how projects differentiate themselves. He also explores the innovative mechanics of mutant apes and the impact of blockchain on the NFT landscape, providing listeners with a deep understanding of this rapidly evolving ecosystem.

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ANECDOTE

Finding Community in Bored Apes

Eric Golden, initially a crypto newcomer, felt like an imposter among early Bitcoin adopters in the CryptoPunks community.
He found a sense of belonging with Bored Apes, drawn to its inclusive culture and shared belief in unconventional success.

INSIGHT

NFTs as Membership Cards

Bored Ape Yacht Club NFTs function as unique membership cards, fostering a sense of community among owners.
This differentiates them from traditional art, adding a social layer to digital ownership.

INSIGHT

Rarity and Value in BAYC

The Bored Ape Yacht Club NFT collection has a hierarchy of rarity, with prices ranging from $140,000 to millions.
Rarity is determined by the combination of 170 different attributes, creating a pricing curve from floor to high-end apes.

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Today, I am excited to share our newest show, Web3 Breakdowns. Similar to our Business Breakdowns series, Web3 will have it's own dedicated feed so make sure to hit this subscribe link or find it on your preferred podcast player. The first episode of Web3 Breakdowns covers Bored Ape Yacht Club. You will hear from guest, Eric Golden, who will also be coming back to host his own Web3 Breakdowns moving forward. We are sharing this first episode to make sure no one misses this launch.

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Welcome to our new show, Web3 Breakdowns. We want to be your on ramp into this new decentralized world, and through conversations with builders, creators, and investors, we will do our best to help you understand and navigate this emerging ecosystem.

First up, we are breaking down the NFT project and cultural phenomenon, Bored Ape Yacht Club. To help break down Bored Apes, I am joined by Eric Golden, former Portfolio Manager at Fidelity and current Bored Ape owner. Eric and I start with an overview of the Bored Ape Yacht Club and his path to owning an NFT in the collection. We then use Bored Apes as a lens to understand how NFT projects are not just creating rare art but strong membership communities too. Beyond the cultural differences between NFT communities, it was fascinating to hear how projects are differentiating themselves with IP ownership, roadmaps, and DAOs. Please enjoy this breakdown of the Bored Ape Yacht Club.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes.

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Show Notes

[00:02:30] - [First question] - What the Bored Ape Yacht Club is

[00:03:39] - Motivations for owning a Bored Ape compared to traditional art

[00:07:46] - The scope of prices, hierarchy, turnover, and trading overview of these NFTs

[00:09:51] - Distribution of rarity and why it matters

[00:11:29] - How the project roadmap is managed by the member community

[00:16:23] - Who are the members and the key stewards of steering the ship

[00:18:08] - An example of a project where the owners don’t own the IP of their NFT

[00:20:56] - Underlying fundamentals and utility behind owning a Bored Ape

[00:26:36] - Thoughts on fungible tokens inside of non-fungible projects

[00:29:06] - Ways to think about the value proposition of owning an Ape and an Ape token

[00:30:36] - Different options for minting NFTs and their pros and cons

[00:34:36] - Literal mechanics of the minting process

[00:36:59] - Smart contract mediating of combining NFTs to generate rare ones

[00:39:20] - Building a bottom up brand and other examples of this trend

[00:41:50] - Are NFTs just gambling, or will they become investable assets like physical art

[00:46:09] - Blockchain infrastructure of the NFT space and whether it’ll stay on Ethereum

[00:48:48] - What makes the Bored Ape Yacht Club so innovative compared to other projects