The BAYC Mirage: How Billions Conjured in FOMO Turns into Digital Dust

Key Highlights

BAYC’s floor price plummeted over 96% from its 2022 peak of over 120-145 ETH to under 5 ETH by early 2026.
The project rapidly gained traction with high-profile endorsements, propelling it to billionaire status and massive trading volume despite lacking intrinsic utility.
The project’s ponzi-like dynamics and FOMO-driven growth, which is now all dust, highlights warnings against hype-driven crypto assets without real utility.

In the annals of financial folly, few tales rival the rise and fall of the Bored Ape Yacht Club (BAYC). What began as a collection of 10,000 cartoonish ape images in April 2021, ballooned into a multi-billion-dollar empire, only to ultimately collapse under the weight of its own hype.

While most projects in the crypto landscape follow the same direction, BAYC stands out because it involved not just crypto-degens but celebrities, tech-entrepreneurs, musicians, designers and several other high profile individuals.

No doubt the invention of non-fungible tokens (NFTs) marked a shift in digital and intellectual properties rights, but most people have solely exploited it for their own benefits. Yuga Labs did not invent NFTs, but they mastered the art of turning digital nothingness into a status symbol. Let us examine the case study of this project and unfold the not-much-talked story behind it.

How Yuga Labs created exclusivity from thin air

Launched by Yuga Labs during 2021’s crypto bull run, BAYC’s apes were algorithmically generated variations of primates decked out in trendy accessories, such as hats, lasers, and gold chains. Each of these were minted on Ethereum and sold initially for 0.08 ETH, about $200.

Their pitch was simple at the time: own an ape and join a virtual yet exclusive “yacht club” with perks like virtual parties, merchandise drops, and intellectual property rights to your ape’s image. But beneath the veneer, there was no such intrinsic value as these JPEGs were nothing more than any other NFTs on blockchain. In fact, some individual apes from the collection sold for millions, are now worth roughly $30,000–as of latest market data.

By January 5, 2026, the floor price of these once-coveted NFTs has plummeted below 5 ETH—roughly $15,000—a staggering 98% drop from its mid-2022 peak when apes traded for over 120 ETH, or about $489,000 each at the time.

This isn’t just a market correction, it’s a damning indictment of how Yuga Labs engineered perceived value from thin air while exploiting speculation, celebrity endorsements, and empty promises to fleece investors before the illusion shattered.

The rise and trend of Bored Ape NFTs

Within a month of its launch, the hype around the BAYC NFT collection kicked into overdrive through savvy marketing. The market vibe and FOMO (fear of missing out) fabricated by limiting supply to 10,000 apes, created artificial scarcity. Initially, only crypto people shared the madness for “weird Ape NFTs,” with their floor price—the lowest price at which an NFT is sold—surging nearly 10x from that at the time of minting.

Soon after, the project got wider recognition from A-list celebrities. These included Justin Bieber, Madonna, Eminem, and Paris Hilton who jumped aboard, flaunting their apes on social media and inflating prices through association.

Moreover, auctions at Sotheby’s and partnerships with brands like Adidas further legitimized the project, turning it into a cultural phenomenon. Media outlets breathlessly covered BAYC as the future of digital ownership, ignoring the fact that the “club” was merely a Discord server and unfulfilled metaverse dreams.

A billion dollar NFT project that sold “Vibes Only”

At its peak in May 2022, BAYC’s market cap soared to the billions, with total trading volume hitting 15.6 million ETH. Besides the original collection, Yuga Labs later also revealed spin-offs like Mutant Ape Yacht Club and Bored Ape Kennel Club. This addition diluted the original collection while promising expanded utilities.

In March 2022, Yuga raised $450 million in funding, valuing the company at $4 billion, and teased ambitious projects: a metaverse called Otherside, Hollywood deals, and later even launched a native token of the project, dubbed ApeCoin (APE), and its own blockchain ApeChain.

Yet, the “value” within the project was only illusory as the project offered no dividends, revenue shares, or real-world utility beyond bragging rights. While the IP right was a thing, it largely remained unused, as most owners treated apes as speculative assets instead of creative tools.

The Otherside metaverse? A glitchy demo that failed to materialize into anything substantive. High-profile ventures, like a Seth Green TV show, stalled due to legal hurdles over stolen apes. And at this point, Yuga’s expansions flooded the market and the exclusivity around the project eroded.

Bored Apes in controversies

Things got even worse for BAYC as controversies around the project undermined the brand’s facade. One of the issues was raised by Artist Ryder Ripps who accused Yuga of embedding racist and neo-Nazi symbolism. He claimed the BAYC logo resembled a Nazi Totenkopf emblem, ape traits evoking derogatory stereotypes, and founder pseudonyms tied to alt-right memes.

In response, Yuga sued Ripps for trademark infringement over his satirical RR/BAYC collection, which repurposed apes to highlight these issues. The courts sided with Yuga, awarding $1.5 million in damages. This didn’t erase the stains; it amplified skepticism, revealing BAYC as a grift wrapped in memes, where insiders cashed out while holders clung to fading hype.

Critics also argue that the project mirrored classic Ponzi dynamics: early adopters profited by hyping the project to lure in new buyers, with value derived solely from greater fools willing to pay more. Yuga’s founders, operating under pseudonyms like “Gargamel” and “Gordon Goner,” fueled the frenzy with viral social media posts and events, but the foundation was all sand.

Where BAYC stands now?

At the time of publishing, the floor price for BAYC NFT collection is nearly 5 ETH, worth roughly $17,000—down 96% from its peak. Its average sale for the past 90 days has declined to 1,256—which is barely 1.2% of the collection of a total of 10,000 NFTs.

The native token of the project, ApeCoin (APE) is down 99% from its peak of $39.40, currently trading at $0.22—as per CoinMarketCap data. It had a market capitalization of $5.5 billion, which has now shrunk to $170 million.

Not to mention, the traction around Otherside metaverse and Apechain has no visible presence against other leaders. DeFiLlama data shows that ApeChain has $5.69 million in total value locked (TVL) with none of the applications within its ecosystem generating volume.

Lessons learned: It’s all just hype and value extraction

The collapse of BAYC signals the death of hype-only projects in the crypto landscape, concluding on a fact that the industry needs to focus only on genuine innovation. It is important to emphasize that only utility and real value providing projects should be reaching mass, not any trend-driven that extract value.

As one analyst noted, BAYC thrived on “hype-filled projects without underlying utility,” dooming it into the state of worthlessness. These apes weren’t really an art; they were a speculative vehicle disguised as a community token.

The moral: value from “nothing” evaporates. Most of the crypto projects are mirage and conjure billions from digital dust only to become ruins. As the industry evolves, remember this as a warning against unchecked greed.