Collection of 81 Bored Ape Yacht Club NFTs

A crypto DAO has amassed 81 Bored Ape Yacht Club NFTs; it may force to sell them all due to a significant valuation gap that has plagued the tokens issued to its members.

ApeDAO token holders can diversify their exposure to various popular NFTs such as BAYC, CryptoPunks, Mutant Apes, and Cool Cats. However, since its launch in October 2021, the DAO’s token has traded at a price far below the implied value of its NFT collection.

Following the failure of a proposal for the DAO to pursue a comprehensive professionalization effort to help close the valuation gap, ApeDAO members have launched a new bid. They will liquidate its NFT collection to complete the discount.

Given the current gap between the $APED price and the net asset value of DAO holdings, liquidating the DAO would generate substantial returns for $APED holders, the proposal states; estimating that six to eight ether could distribute for every 1,000 ApeDAO tokens.

At current prices, that ether is worth between $16,000 and $21,000. At the same time, 1,000 ApeDAO tokens are currently worth only $12,000; highlighting the vast disparity between the tokens and the underlying NFTs from which they are supposed to derive their value.

According to various estimates, such as using the NFT assets’ floor price or average price, the valuation gap between ApeDAO tokens and its underlying holdings could be as much as 50%. In particular, bored Ape Yacht Club NFTs have seen a significant increase in value over the last few months, rising from a floor of around 20 ether to about 100 ether today.

At the time of publication, 86 percent of those who voted favored selling. The voting period will end on February 2nd.