In December 2021, a digital art NFT collection of 10,000 weird-looking apes aptly titled Bored Ape Yacht Club (BAYC) overtook CryptoPunks as the highest-priced NFTs.
The Ethereum-based collection comprised pictures of apes wearing various expressions mostly that of getting bored and having diverse yet unconventional traits like golden fur, laser eyes, etc. In April 2022, the cheapest NFT of this collection stood at around $430,000. This was astronomically high from their launching value of the whole collection of $190 last year on April 23, 2021.
Additionally, these NFTs dually act as membership cards to the prestigious Yacht Club and bring various benefits. Members get access to an exclusive Discord server where celebrity members like Jimmy Fallon and Justin Beiber may also join. They get rewarded with perks like free additional NFTs or tokens of the valuable ApeCoin. Lastly, of course, they can always flaunt their ownership of these elite NFTs through their profile picture on Twitter. Sounds incredible? It is. All these starry rewards that BAYC offers have perked up people to grab one of these odd-looking weirdos.
BAYC is the most premium example of how 10K NFTs have the potential to rule the market. These collections are high in demand and are a fantastic tool to build an exclusive community and open exceptional financial avenues that never existed before.
In this blog, we will discuss 10K NFTs as comprehensively to know what they are, how they are created, and, more importantly, explore the reasons being their popularity.
What is 10K NFT?
To get a grasp on 10K NFT, we have to first comprehend the concept of NFTs. NFT or Non-fungible Tokens are digital tokens that can be used to establish ownership of digital assets. Till now, there wasn’t a perfect way to trace ownership as it was very easy to copy digital items and there was no way to differentiate the original one from the copied one. However, NFTs can offer a solution with the help of Blockchain technology. NFT establishes the uniqueness and records their ownership on the distributed ledger which is near impossible to alter.
Moreover, NFTs can also represent a real-world object on a digital platform. These objects tend to have a perceived value in the real world. Attaching NFTs to such objects allows their digital manipulation.
Coming to the main topic of the 10K NFT collection. The collection is more about arts, which are a little bizarre and evoke peculiar feelings in the viewer. These artworks are generated through an algorithm working on traits.
Traits are the building blocks of 10K NFTs that are overlaid on each other in different combinations to create artwork-NFTs. The algorithm keeps on generating new combinations and registering them as NFTs until the count of ten thousand is reached.
NFTs created thereby are unique, rare, non-reproducible, unpredictable, and fixed in supply. We will discuss these features in detail in the coming section.
These features along with other factors contribute value and popularity of the 10K NFTs. They make them a great digital asset and create an ecosystem of an exclusive community evident in the case of Bored Ape Yacht Club discussed in the introductory part above.
What are the main features of 10K NFTs collection as a digital asset?
Four main features underpin the high valuation of the 10K NFT collection as a great digital asset.
10K NFTs are a collection of unique artwork. The creators of the collections build them around a distinct theme, which brings uniqueness and thereby value to the collection.
10K NFT collection is infused with the rarity. This is over and above their uniqueness factor. As we know that NFT collections are nothing but a combination of different traits. In the process, some traits are purposely made rare.
For this, the creator specifies some special traits. The algorithm uses these specified traits to make certain artwork in the collection rare.
An example would make things simple. Imagine a collection of NFTs is to be created with colorful backgrounds The color choices are Red, Blue, Green, and Gold. The trait of golden background is specified as a rare trait. Therefore, the algorithm utilizes the golden background only once or twice while it uses the other colors quite generously.
At the end of the process, we get a collection of unique NFTs having colored backgrounds but those with the golden background are only one or two in the whole collection of ten thousand. This makes the golden NFTs rarer in the whole collection.
Now, comes the non-reproducible aspect. Their identity along with the ownership record is guaranteed through blockchain technology. Blockchain technology in collaboration with the NFT marketplace ensures that there are no NFTs with the same artwork and token, whether within the same or in the other collection.
This implies that the NFTs cannot be copied or replicated and are not interchangeable.
The high values of an NFT is also a result of its limited supply. These NFTs are generated in a pre-defined number such as 10K, 20K, or 100K. Once the collection of NFTs is generated the supply is limited to those numbers only.
As these NFTs are generated through a computer algorithm and not by manual efforts, the actual output of 10,000 NFTs stays a little unpredictable to the human mind. This is because the traits can be mixed in any combination. This builds up the excitement and curiosity around it as well as adds to the value of the collection.
What is 10K in 10K NFT? Can there be more like this?
As we discussed in the above section, 10K stands for ten thousand i.e. the number of NFTs that we get at the end of successful algorithm execution, the number of NFTs we get as the result of successful algorithm execution.
Moreover, there can be more NFT collections like these such as 20K NFTs with a count of twenty thousand NFTs. Similarly, there can be 100K NFTs or, even the latest and trending one, NFT 8888.
What makes 10K NFTs so popular?
10K NFTs gained a lot of attention as the profile pictures on the major social media platforms especially that of the celebrities having millions of followers. People were using them to flaunt their social profiles. Additionally, late in 2021, their popularity soared further on the back of Metaverse. They were seen as the characters that can come alive in the new virtual world. Let’s give a closer look at these reasons.
If one thing that single-handedly popularised NFTs, it is the celebrities, hands down. Not only had they spent fortunes on purchasing these pricey digital assets but they also made sure that the world knows about it. They collaborated with different metaverse platforms to have their presence in the virtual world and indulge in the trading of NFTs.
When it comes to 10K NFTs, many celebrities bought from the famous NFTs collections and put them out as their social media profile. As it happens, hundreds and thousands of their followers went crazy to get their piece of these NFTs.
Some of the celebrities purchasing 10K NFTs are – Jay Z, Marshmello, and Heidi Klum purchasing CryptoPunks. Eminem, Neyman Jr., and Justin Bieber got their hands on the Bore Apes.
10K NFT-based characters have the potential to find their way into mainstream entertainment. That is why many of the purchases of these collection has been drawn by this speculation only.
There are two ways for it. First, either the NFT character themselves can come to life in a movie like that of the “The Degen Trilogy” announced by Coinbase, which plans to produce the animated series of short films. The project will require the NFT holders of the Bored Ape Yacht Club (BAYC) to submit their apes to be considered as characters. The series is set to premiere at NFT.NYC.
Another way is to be a “producer” of a film. An example in hand is that of Arabian Camels. The NFT-holders will partly fund the Hollywood movie titled Antara. They will own a part of the digital right and will also have a share in the box office collection.\
Till now the major beneficiaries of the NFT technology have been the gaming and the art industries, however, these developments indicate that the entertainment industry would be the next to boom with these crazy characters.
The next reason is an instinctive one as it attaches utility to the NFTs. The collections offer some of the very exclusive perks and bonuses to the 10K NFT community members. After all, buying such a pricey asset must come with some tempting advantages than just being a profile picture.
Although, the actual benefits will vary from one collection to another and depend upon the theme around which the collection is built. This includes the characters in the NFT collection, their traits, etc.
When it comes to 10K NFT collections, they offer benefits at two levels. First, on account of being an NFT and, second, because of being a collection. Let’s discuss it one at a time.
The first and foremost benefit is that of holding digital assets that may yield high returns. Just as we saw in the above case of BAYC. Similarly, they can be used as collateral in the Defi structure for loans.
Moreover, staking NFT on a blockchain platform is another opportunity that NFTs bring along. This way the NFT holders can earn rewards and income in the form of cryptocurrencies by contributing to the safety structure of the blockchain.
However, the benefits do not end there. 10K NFTs create opportunities for its member to avail themselves of exclusive benefits. These benefits are handed on the ground of their membership that comes with the NFT they buy from the collection. They can be provided with freebies or related benefits like complementary NFTs for minimal or no fee.
This is the most important benefit of 10K NFT. They allow the NFT-holders to be a member of a rare group. This feeling of being part of an exclusive community has been attracting more buyers than any other factor.
There are meet-ups and private parties are organized only for NFT holders of the collection can attend.
However, the most attractive benefit has been the exclusive private shows by the celebrity members of the community only for the members.
This factor increases the values of the community. More and more people desire to be its part and lesser member want to let go of the membership. Hence, increasing the value of the NFT collection.
How to create NFT 10K Collection?
The development of a high-quality and high-demand NFT 10K collection depends upon its properties and structure, such as the logic used in the algorithmic to create each NFT in the collection, rarity manipulation, royalties structure, and airdrop token break-up among others.
Create your art with Intellectual Property Rights (IPR)
First, you have to create your art and attain IPR for each of them. The artform or the design is not a concern, you can get it registered as NFT anyway. Be assured that the artwork will not get altered in the process.
At Queppelin, we can also help you in the designing part by offering the most creative best designing services that are NFT-oriented.
Trait library creation
Once the basic concept of the art is finalized, the trait library is created. The library forms the basis of the collection. It is the primary component over which the algorithm works.
Generation in bulk
As now we have the raw material in the form of our trait library, the time is for NFT generation. It will yield all the possible combinations of traits along with their uniqueness and rarity grades.
Revision of the collection
Since, the human eye may not differentiate what a computer program can, in the next step we remove all the perceptual duplicates. After all, it is all about appearing unique to the artwork collector.
Making it to 10K
Once all the final NFT artwork is in place, we make sure that the count reaches tp 10,000.
10K NFTs have created their market based on the unique appeal that we discussed in the blog. They are exciting, unpredictable, and attractively weird. No doubt they drawing a lot of attention in the market. Some art enthusiasts want to grab them for their art and others want to seize the amazing financial avenue they open up.
Talking about the financial opportunities, we saw how the inherent features of 10K NFTs like uniqueness, rarity, unpredictability, etc. are contributing to it. However, the market value is not only the result of this, the celebrity involvement, mainstream potential, and others are also a great doner in its soaring high financial returns.
With the ever-expanding NFT market, we are certain that opportunities for the 10K NFT are only going to increase.