Digital apes are all the rage in the world of non-fungible tokens (NFTs). Mutant Ape Yacht Club is the second collection of NFT apes released by Yuga Labs. The first, Bored Ape Yacht Club, racked up $1 billion in sales in less than a year.
Unique risks
Even though Mutant Ape NFTs are cheaper than Bored Apes, they're still not inexpensive investments. They cost about $40,000 worth of Ethereum -- minimum -- as of May 2022.
NFTs are risky bets because their prices are driven by popularity. It's possible that Mutant Ape Yacht Club soars in value, but it's also possible that people move on to the next fad. Also, the cost of Mutant Apes makes them a much bigger risk than the typical NFT. If their value tanks, you could lose tens of thousands of dollars on an asset that has no real utility outside of membership to an online club.
Is Mutant Ape Yacht Club a good investment?
Mutant Ape Yacht Club is a poor investment, and even calling it an investment is a stretch. If you buy one, you'd be spending $40,000 or more on a digital ape.
Fans of this NFT collection may point to how much prices have gone up as evidence of why Mutant Apes are worth buying. That's great for anyone who sold theirs for a big profit, but it doesn't make Mutant Ape NFTs a smart choice going forward. Popularity always reaches a peak, and considering all the attention Bored Ape Yacht Club has already gotten, there's a good chance we're past that point.
If you have the funds, buying NFTs is easy. Selling NFTs, especially ultra-expensive ones, is much more difficult. The fact that this collection is popular right now doesn't mean anyone will want to buy your specific Mutant Ape. There are much better investments out there, including blockchain projects and cryptocurrency stocks.
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How to buy Mutant Ape Yacht Club
Buying an NFT from Mutant Ape Yacht Club definitely isn't recommended, but if you want to do it, here's how:
- Purchase Ethereum, the cryptocurrency used to pay for Mutant Apes. It's available on most major crypto apps and exchanges.
- Deposit your Ethereum to a blockchain wallet.
- Go to OpenSea, the NFT marketplace with Mutant Ape Yacht Club, and connect your wallet.
- Browse the Mutant Ape Yacht Club collection and pick one you like.
Mutant Ape and Bored Ape NFTs have built a sizable following that includes many of the rich and famous. While they may be popular status symbols, they're not worth considering as an investment.
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