Yesterday we talked about Opensea, and today I will continue with NFTs, which is also a summary translation of an article.

HBR's article "Bored Ape Yacht Club: Navigating the NFT World"

Original link: https://www.hbs.edu/faculty/Pages/item.aspx?num=62192

History:

In September 2021, 101 JPEGs from BAYC were sold at Sotheby's auction house for $24.4 million; four and a half months later, the price increased by thousands of times.

After owning the monkey NFT, you will have some privileges:

• Yacht Club

• Some privileges on the BAYC website

• Public graffiti board messages

• Merchandise airdrops, such as collaborations between streetwear brand The Hundreds and BAYC

• Exclusive Event

• September 13-14, 2021 Treasure Hunt Competition

• November 2021 Ape Fest

• Centered around the IP rights of the owned monkeys

• For example, Jenkins the Valet. The first iteration of Jenkins The Valet will be a long-form work of fiction written by award-winning author Neil Strauss, with plans to expand into multiple media.

After that, NFTs saw a lot of new hype:

• In March 2021, Twitter CEO Jack Dorsey sold the NFT of his first tweet for over $2.9 million. (Editor's note: This Twitter was recently re-auctioned, with the highest bid reaching $280.)

• Taco Bell's animated NFTs sold out within 30 minutes after their release.

• The NBA and Dapper Labs sold NFTs of famous NBA "moments" through the digital collectibles marketplace Top Shot.

Of course, there were also dissenting voices.

• Supporters argue that

• global creativity and brands will widely adopt NFTs, pointing out their potential to more directly reward creators compared to platforms like YouTube, Instagram, or TikTok.

• Skeptics argue that

• NFTs are merely a passing trend and are unlikely to enter the mainstream market.

• Despite the relatively high liquidity of NFTs, the rapid and explosive price appreciation reflects more speculative behavior than genuine value creation. (Translator's note: somewhat similar to IXO in 2017)

• The controversy over the impact of NFTs and other crypto-assets on global carbon emissions is also growing. A short film/video collection based on NFTs, created by Canadian musician Grimes and sold for about $6 million, required more energy in its development and sale process than the average consumption of an EU citizen over 33 years.

Moreover, the overall legal aspects of NFTs are still unclear:

• Regulators may begin to view part or all of NFTs as securities or investment contracts, which would restrict NFT marketing and ownership transfer, and subject NFTs themselves to U.S. federal income tax, estate tax, and gift tax.

• There is no unified legal definition or classification of NFTs globally, and intellectual property related to NFTs and other decentralized blockchain technologies has not yet been codified.

• NFT theft occurs frequently.

• Fraudulent sales of counterfeit NFTs to unsuspecting consumers are also rampant.

Will NFTs carve out a niche in the mainstream market, as traditional art and collectibles have? Assuming that they do,

• will Bored Apes have staying power as this new asset class matures?

• The Bored Apes team must consider potential strategies: should they focus on keeping Apes purely digital or find more ways to connect with the physical world?

• Given all the uncertainty and rapid change in the NFT space, however, they must begin executing on whatever plans they have, and fast.

To find out what happens next, please tune in for the next episode～