While the world awaits the rumored $APE token from Yuga Labs / Bored Ape Yacht Club (BAYC), a new announcement came to twitter late yesterday evening.
fuck it, again.https://t.co/1KlPpVjWkb
— Bored Ape Yacht Club (@BoredApeYC) March 10, 2022
Initial suspicion quickly went to the previously announced project about the partnership Animoca Brands and Bored Ape Yacht Club (BAYC) to develop and publish a blockchain game utilizing BAYC’s hugely popular Bored Ape non-fungible tokens (NFTs). The team confirmed it isn’t associated with that, or their token (which is supposed to drop before the end of March.)
Bored Ape Land Club?
With both the game and the token ruled out, speculation has turned to some sort of land project or marketplace that is going to be created in partnership with Animoca. Animoca has well documented partnerships with some of the top NFT projects in the world, they also have experience in the metaverse and helping projects navigate the space.
The interesting thing about this particular registration is that it’s currently open to everyone, which sent the web3 communities into a frenzy hoping to be able to gain access to the next stage of BAYC projects. The catch is that you have to attach an ETH wallet and self-identify with Know your Customer (KYC).
What is KYC and How does it work?
KYC is a process that establishes the identity of individuals or organizations.
In order to take part in the digital currency world, you need to be KYC compliant. This means that you need to provide your personal information and documents that prove your identity. It is a requirement for most digital exchanges, as well as ICOs.
While cryptocurrencies are becoming more mainstream, the regulatory environment is still uncertain. There are many countries that have taken different approaches to regulating digital currencies.
The main reason for KYC is to prevent fraud and money laundering. The government has started to regulate cryptocurrency exchanges, and they need to know who they are dealing with in order to do so.
BAYC x ANIMOCA KYC issue
The NFT Culture team is in favor of KYC for many instances, especially if crypto currencies and web3 are going to break out of the niche they are currently in. The issue here with KYC is that they want you to go through a tedious (and in some instances dangerous) process with very little information about what you are self-identifying for.
This 👇. I don't care who you are. But blind trust is unacceptable when we preach zero trust all day long. https://t.co/GGUsrTtU7q
— NFT Culture (@NFTCulture) March 10, 2022
You shouldn’t expect people to go through the process of identification without
- Telling them what they are signing up for with specificity.
- Making sure that everyone that is self-identifying has access to the product they are signing up for
- Explaining how and why KYC is necessary.
None of this was done as of publishing of this article.
Get used to KYC
The reality is that KYC isn’t about crypto. The government is implementing KYC policies agnostic of currency or asset class and expanded last year to include everything from crypto / NFTs to reselling tickets on ticketmaster. While you may not like KYC if you resell anything you’re likely going to have to go through some sort of KYC process (and have a 1099 attached to it).
There are already a number of companies trying to simplify the process for KYC that will likely act as escrow / liaison services to help Small Businesses and individuals navigate this space.
Precursor to $APE Coin?
If this is a marketplace it could be a great precursor to help people KYC ahead of the token release to make the process more seamless when / if the token gets launched. One thing Yuga Labs is incredibly focused on is making sure they get this right. The team carries a tremendous burden to represent and establish best practices to help NFTs continue to go mainstream. We’re looking forward to learning more about this project and are definitely excited to see what comes next.
For now, with as little information as we have about this pending project, you’re going to have to ask yourself if it’s worth it. 50% of the NFTCulture team already decided yes… what an interesting world.