I noticed on Twitter (or should I say X) that many were wondering what happened to the Bored Ape Yacht Club and why things don’t seem so bright anymore. I am surprised that some people are surprised about it…

What do they say - The higher you climb the harder you fall?

At the very beginning of the NFT hype cycle - many 10k NFT PFP collections with different animals were launched. One of them back in April 2021 was the Bored Ape Yacht Club.

Unlike what you may think, the collection did not sell out within minutes. In fact, it took them over a week to do so.

I personally stumbled upon them accidentally. Back in those days when I was exploring the space I ended up in a Twitter Space full of ugly-looking monkey avatars (all male) speaking to each other. It felt like a very friendly place where people discussed how to contribute to their community.

They spoke about creating a book club, about web3 in general, their stories of how they ended up in space, etc. Overall it was a very cozy place and I was surprised that, unlike other NFT degen spaces, no one actually spoke about alpha, the floor price, big gains, etc. Although most of them already had quite good gains seeing as by that time the BAYC floor price was already 3 ETH (compared to the original 0.08 mint price).

Shortly after that Bored Ape Yacht Club would become one of the most popular NFT collections in the market that everyone was going to talk about and I would kick myself for not getting several apes back when I discovered them so I could sell them later and retire…

Anyway. Let’s try to understand what happened to them with this article.

Content Overview

What was behind their success?

There were different components that many argue played a role here.

I may be biased - but I would argue that all the above would not matter if they had not nailed down the last point.

If I am not mistaken the Ape high-level story read something like this:

The year is two thousand thirty everyone who aped into crypto is super-rich and extremely bored and wants to hang out with other like-minded apes.

Why do I think it worked?

Yeah, it’s not an amazingly well-crafted or detailed story, nothing too complex there. But as far as I remember, before them, no other project even bothered to tell a story apart from the story of “you will get rich quick”. So here at least we’ve got something.

But the important thing is that in this story the people they were targeting: the degens were the heroes of the story. The story was tapping into their strong dream and desire and it made them the hero who succeeded at the end. Also using the term “aping/ape” seemed to click.

More mints - more money

Later on, Yuga Labs dropped 2 more collections:

  1. Bored Ape Kennel Club (airdropped to Ape holders)

  1. Mutant Ape Yacht Club in Aug 2021

These 2 drops made Yuga Labs, as well as the Bored Ape holders, richer.

And now we are reaching the point where Yuga Labs and its collections grew massively!

Celebrities

The demand would not be so crazy and the floor prices would not skyrocket, if not for the “heavyweight shilling army” that got involved - the celebrities.

Many “normies” saw a Bored Ape for the first time probably in January 2022 on the “The Tonight Show” episode from January 2022.

https://youtu.be/5zi12wrh5So?t=225&embedable=true

Who else was involved? Plenty of them!


It was a massive marketing campaign relying on Guy Oseary connections I presume. (Guy is the founder of the management firm Maverick, whose clients include Madonna, U2, etc. who worked with Yuga Labs).

All those celebrities started rocking their Apes and Mutants as PFP on their socials. As soon as they started promoting it the project became something else. The prices mooned and holding a Bored Ape became a status symbol.

I would also argue that it became the turning point for the community too: it became very diverse and lost part of its vibe and unity.

Essentially owning a Bored Ape became a flex.

ANON? Not Anymore!

Yuga Labs’ founders were anons and their identities were not public. Usually, for various reasons, that’s what many prefer in this space.

But in February 2022, BuzzFeed published an article revealing the identity of two of the four BAYC co-founders: Gordon Goner and Gorgamel.

The journalist and the media got a backlash from the community, as they felt doxxing people against their will was unethical and some felt that it also compromised their safety.

But at least, now, people knew 2 out of 4 people responsible for making them rich…

or creating a Nazi brand?!

The accusations about Yuga Labs being Nazi and Racist started circulating around the end of 2021 already.

https://twitter.com/Pauly0x/status/1470292926085226497?s=20&embedable=true

Ryder Ripps launched a website at https://gordongoner.com/ (getting the SEO juice) with all the concerns and details at the beginning of 2022.

Back then, not many seem to have paid much attention to those. There were some discussions here and there but it did not gain massive traction (spoiler it did later on… but not just yet).

Hot Spring 2022

The Spring of 2022 was massive for Yuga Labs. It was packed with a few huge events that resulted in positioning the company as arguably the biggest and most powerful in the whole space.


I don’t know how you feel about it, but personally, I can’t really understand why would one raise funds through VCs when they absolutely did not need to do so. Through all those mints and coin releases they already made way more than “enough” - but I guess who cares about the community and why stop at “enough”? If you can get $450M more, why not do so, right?

Oh and once 2022 ended Yuga Labs’ NFT royalty income hit $100M +.

Anyway, let’s see what happens to a $4B company with so many resources and celebrity endorsements + huge plans of building a game and a Metaverse…

NFT NYC - Summer, 2022

Yuga Labs was the “hero” of the space at this point and the central spotlight at NFT NYC. They had organized a massive token gated Ape Party for their community with tons of celebrities and music performed by EMINEM, FUTURE, SNOOP DOGG & LCD SOUNDSYSTEM!

Remember those accusations?

Well… they did not get traction back then… but the bomb was dropped during the NFT NYC days… and this time it exploded!

The Youtuber Philion published his video called BORED APE NAZI CLUB.

https://youtu.be/XpH3O6mnZvw?embedable=true

The video blew up (2M views so far) and even my “normie” friends were asking about it since they somehow stumbled upon it and watched it for the whole 1 hour…

Soon enough, the whole NFT community was talking about this. The whole space was divided into 2 camps: those who believed and supported the accusations and those who dismissed them.

The loudest voices among the first camp were Ryder Ripps and Pauly. And with time they got massive support and a community behind them. Those people were active on Twitter, loud, and very passionate.

What did Yuga Labs do?

At first, they ignored it. Then, they denied all the accusations saying those who spread the rumors were just trolls in a few interviews (honestly with so much money, I’d expect them to have a much better PR team advising the team…).

Then they sued Ryder Ripps and Pauly in June 2022.

I keep thinking about what would have happened if the Bored Ape community was united and loyal. If they stood up for the brand and fought for it as passionately as the accusers… Would Yuga Labs still feel the need to go to court?

Well, we won’t know, since it did not happen.

By the way… did I tell you what were they being sued for? The logical answer would be defamation, right? I mean, so many horrible things were told about the brand, their intentions, etc…?

But no - the court document states that it’s about something else…

Below is a quote from the document:


In response to the Bored Ape Yacht Club’s popularity, Defendant Ryder Ripps, a self-proclaimed “conceptual artist,” recently began trolling Yuga Labs and scamming consumers into purchasing RR/BAYC NFTs by misusing Yuga Labs’ trademarks. He seeks to devalue the Bored Ape NFTs by flooding the NFT market with his own copycat NFT collection using the original Bored Ape Yacht Club images and calling his NFTs “RR/BAYC” NFTs. Brazenly, he promotes and sells these RR/BAYC NFTs using the very same trademarks that Yuga Labs uses to promote and sell authentic Bored Ape Yacht Club NFTs. He also markets these copycat NFTs as falsely equivalent to an authentic Bored Ape Yacht Club NFT. He then goes on to use Yuga Labs’ marks to promote his coming “Ape Market” NFT marketplace, which requires a person to purchase one of his infringing NFTs to join the Ape Market. This is no mere monkey business. It is a deliberate effort to harm Yuga Labs at the expense of consumers by sowing confusion about whether these RR/BAYC NFTs are in some way sponsored, affiliated, or connected to Yuga Labs’ official Bored Ape Yacht Club, in violation of the Lanham Act and related state law.

I think the whole story of RR/BAYC deserves a whole separate article, so I won’t go into that and let you do the research if you’d like. I’ll probably visit the topic at some point in another article - but not in this story.

Present Situation

Now, let’s see where we are:

Below is the trailer (I will leave it to your judgment)

https://www.youtube.com/watch?v=5CJsAej_GWc&embedable=true

Even more: the MoonPay and the celebrities have been sued


Also published here.