Apes as an Asset Class

In recent months, there has been an explosion of new NFT projects and increased publicity around high-priced sales (e.g. Bored Apes). As investors reevaluate their NFT theses, is there room for Ape based NFTs in a portfolio? Since selecting the “right” NFTs is paramount to one’s investment success, this report will examine whether Apes are worth of investment as well as illustrate the signs pointing to an NFT bubble.

While there are many different use cases for NFTs, this research piece focuses on collectibles, specifically avatar or profile-pic (pfp) collectibles. Often, this category of NFTs share the following properties:

• There is a collection of approximately 10,000 pieces available for sale
• All pieces have attributes in common (they are all apes, penguins, goats, punks, etc. - seriously)
• All pieces have distinguishing traits (e.g. eye color, fur color, clothes, items carried, etc.)
• Mostly, no two pieces are the same