A decentralized autonomous organization (DAO) that owns an NFT portfolio of numerous Bored Ape Yacht Club and other big NFTs could soon be liquidating.
What Happened: ApeDAO owns a portfolio of 81 Bored Ape Yacht Club NFTs, 81 Mutant Ape Yacht Club NFTs, 34 Bored Ape Kennel Club NFTs, as well as other NFTs, could soon liquidate.
A Twitter Inc (NYSE:TWTR) thread shared by a former ApeDAO member shows the details of a vote being held by community members to liquidate the assets.
ApeDAO was formed in 2021 as a DAO to own blue-chip NFTs, which led it to become one of the largest holders of Bored Ape Yacht Club NFTs.
The DAO features the ApeDAO token ($APED) which offers voting rights and fractionalized ownership. A proposal was recently put to a vote to liquidate the fund.
“Given the current gap between $APED price and net asset value of DAO holdings, liquidating the DAO would generate substantial returns for $APED holders. There have been few concrete proposals/ideas that would generate similar returns as simply liquidating the DAOs assets,” the proposal reads.
The estimate calls for the value of $APED to be worth at least double where it was before the vote with a liquidation.
The portfolio of ApeDao includes the following blue-chips along with hundreds of other NFTs:
- 81 Bored Ape Yacht Club
- 81 Mutant Ape Yacht Club
- 34 Bored Ape Kennel Club
- 1 CryptoPunk
- 1 Fidenza
- 1 Autoglyphs
- 3 Cool Cats
- 2 CyberKongz
- 5 Chromie Squiggles
Related Link: How To Buy NFTs
Why It’s Important: The ApeDAO last raised funds in August at a price of $10 per token. Since that time, the floor price of Bored Ape Yacht Club NFTs has risen significantly from 20 Ethereum (CRYPTO: ETH) to 100 Ethereum (through Saturday) but the price of $APED is down from its August price.
This led to many holders being upset and voicing for changes for a high return. Over 85% of $APED tokens that have voted on the proposal voted in favor of liquidation.
A simple calculation of the top three NFT collections of Bored Ape Yacht Club, Mutant Ape Yacht Club and Bored Ape Kennel Club shows how valuable the NFTs in the DAO are:
81 Bored Apes: $25.7 million based on floor price of 118.69 ETH
81 Mutant Apes: $5.9 million based on floor price of 27.49 ETH
34 Kennel Club: $1.1 million based on floor price of 12 ETH
Many of the assets have rarer traits such as two Apes having the Grin Gold Grill trait (92 Apes), each with a floor price of 197 ETH and two Apes having the King’s Crown trait (80 Apes), each with a floor price of 180 ETH.
The ApeDAO site lists the token value at $18.33 based on the floor price method and a value of $24.69 based on the average trait valuation method. The ApeDAO token trades at $11.92 at the time of writing, trading at a discount of 35% and 52% to the respective valuation methods.
A vote in favor would lead to the DAO likely liquidating, but would still require the willingness of the four multisig wallet signers to approve the liquidation and complete the holder proposal.
ApeDAO is currently the third-largest holder of Bored Apes, which could greatly impact the price of the popular NFT collection if it liquidates the entire collection.
A short-term price dip could happen if all 81 Apes are listed at the floor or low-level prices.
The large collection for sale could also lead to a large buyer holding discussions with the DAO about buying all of the Apes or certain pieces in separate sales.
The liquidation of ApeDAO could lead to calls for other DAOs to liquidate to realize gains of assets held and could forever change the way that DAOs are run.
Photo: Screenshot of Bored Ape Yacht Club
