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.
Mutant Ape Yacht Club is essentially the sequel, and it was also an immediate hit. In the first hour, it had $96 million in sales, and prices immediately doubled afterward. And, like the original collection, it also crossed the $1 billion mark in less than a year. Past success is no guarantee of future success, however. In this guide, we'll cover what Mutant Ape NFTs are and why they're not the best choice as an investment.
Uniqueness
What makes Mutant Ape Yacht Club unique?
The best way to explain Mutant Ape Yacht Club is to start with the original, Bored Ape Yacht Club. Bored Ape Yacht Club is both an NFT collection and a membership club. The Bored Ape NFTs are 10,000 unique digital apes that have more than 170 possible traits. Bored Ape owners get access to an exclusive online Yacht Club.
Prices for Bored Apes skyrocketed shortly after the collection launched. A few months later, Yuga Labs decided to launch another collection, Mutant Ape Yacht Club, both because it's part of the project's roadmap and as a cheaper way for new members to join the club. It released 10,000 for sale and also sent out vials of "mutant serum" to Bored Ape owners via airdrop, allowing them to create mutant variations of their Bored Apes.
Mutant Apes follow the same concept as Bored Apes. They're digital collectibles with unique features, and they get you into the Yacht Club. NFT holders also get full commercialization rights. For example, if you have a Bored Ape or a Mutant Ape, you could put it on products you sell.
Where it started
Where Mutant Ape Yacht Club came from
A group of four friends came up with the idea for Bored Ape and Mutant Ape NFTs. They formed Yuga Labs, LLC, to manage the project, and they launched Bored Ape Yacht Club on April 29, 2021. While Bored Ape NFTs cost 0.08 Ethereum (ETH 1.47%) after launch (about $190 at the time), they sold out in 12 hours and rose significantly in price.
Yuga Labs released Mutant Ape Yacht Club on Aug. 28, 2021. The launch included a public sale of 10,000 Mutant Apes and an airdrop of mutant serum vials for every owner of a Bored Ape, allowing them to get mutant versions of their Bored Apes.
How it works
How Mutant Ape Yacht Club works
Mutant Ape Yacht Club is a collection of up to 20,000 NFTs. There were 10,000 sold to the public and 10,000 mutant serum vials airdropped to holders of Bored Apes. Mutant serum comes in three sizes: M1, M2, and Mega Mutant.
Injecting a Bored Ape with a mutant serum vial creates a new Mutant Ape. If an M1 or M2 serum is used, then the Mutant Ape will have similar features to the original Bored Ape. If a Mega Mutant serum is used, then the Mutant Ape will be completely different and could have rarer attributes.
Like Bored Apes, Mutant Ape NFTs are built on Ethereum and stored as ERC-721 tokens. They also provide membership to the Bored Ape Yacht Club ecosystem. However, Mutant Apes are a lower and more limited tier of membership than Bored Apes.
Connections
Connections
The Bored Ape Yacht Club brand is extremely popular. There are quite a few celebrities across a variety of industries that have their own Bored Apes, from sports stars such as Tom Brady to musical artists such as Eminem. Bored Ape Yacht Club has also established some big partnerships, including working with Adidas (ADDYY -0.11%) on its "Into the Metaverse" project and partnering with toy company Superplastic to create vinyl ape figures.
Mutant Ape Yacht Club isn't as high-profile as its predecessor, so partners are typically more interested in Bored Apes. Regardless, the fact that Bored Ape Yacht Club has gone mainstream helps Mutant Ape Yacht Club as well since the two are closely related.
Risks
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.
Should I invest?
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.
Related investing topics
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.
