The recent launch of ApeCoin has garnered attention in the cryptocurrency industry. After being airdropped to holders of the 10,000 Bored Ape Yacht Club and Mutant Ape Yacht Club NFTs, the token was launched in a loose affiliation with NFT hotspot Bored Ape Yacht Club, has been on the move, and has begun to trade on most of the major exchanges.
ApeCoin is already one of the most valuable digital currencies, with approximately $5.8 billion. Is it just another meme coin, or will its high goals propel it even higher? ApeCoin’s future appears to be brighter. Let’s look at this meme coin to understand it better.
Introduction to ApeCoin
Ape Coin is an ERC-20 governance and utility token within the APE Ecosystem. This decentralized project was inspired by Yuga Labs’ Bored Ape Yacht Club. The currency is now available for circulation in the APE Ecosystem.
On CoinMarketCap, Ape Coin is now ranked 35th among the top cryptocurrencies. ApeCoin DAO, a decentralized autonomous organization, manages APE. According to Yuga Labs, Ape Coin holders have governance powers over the DAO and its decision-making, as well as other benefits.
In March of this year, the BAYC launched APE. In the early days of its launch, APE was trading for around $8. BAYC NFT holders were first offered the opportunity to claim ApeCoin for free. The ApeCoin airdrop by YugaLabs caught the BAYC community off guard.
The rise of the ApeCoin
Ape Coin was first delivered as a reward to Bored Ape Yacht Club owners and Mutant Ape Yacht Club NFTs. Original Bored Apes owners received 10,094 tokens worth over $150,000 at current values. NFT holders will get 15% of APE tokens, with the remaining 47% going to the DAO to help the project expand in the following years.
Ape Coin might become one of the top cryptocurrencies in 2022 if the price continues to grow, given the amount of media attention it has already received. However, as the price is still forming structure, it isn’t easy to generate meaningful projections based on technical analysis, as it is with all new coin offerings. ApeCoin’s principal application is a decentralized payment system.
The particular projects with which Ape Coin plans to collaborate are still unknown, while there are reports that the coin might be integrated into a variety of blockchain-based games. In addition, one of ApeCoin’s early investors, Animoca Brands, is planning to incorporate APE in a new project, helping boost demand for the currency.
How is ApeCoin Distinctive?
ApeCoin is the governance token for the APE Ecosystem, allowing token holders to participate in the ApeCoin DAO and providing a shared and open currency that can be utilized without centralized intermediaries. The Ecosystem Fund will receive 62% of all ApeCoin and fund community-driven activities determined by ApeCoin DAO members.
ApeCoin also gives users access to parts of the Ecosystem that would otherwise be restricted, like exclusive games and services. ApeCoin is a mechanism for third-party developers to join the Ecosystem by integrating ApeCoin into their services, games, and other projects.
The APE Foundation received a one-of-a-kind NFT from Yuga Labs, the makers of the Bored Ape Yacht Club. The APE Foundation has received full rights and privileges to this NFT and its accompanying artwork from Yuga Labs. Members of the ApeCoin DAO have control over how this intellectual property is used.
Distribution of ApeCoin
There are 1 billion ApeCoins in all. 14% will go to “launch contributors,” 8% to the BAYC founders, and 16% to Yuga Labs. Holders of BAYC and MAYC have been given a claim to 15% of the overall circulation, with the remainder going to the DAO’s “ecosystem fund.”
According to a statement, token holders will be eligible to vote on all community decisions. The DAO council will make all other exceptional decisions. Yuga Labs has also said that ApeCoin would be its primary cryptocurrency for products and services. Benji Bananas, Animoca Brands’ blockchain game, also wants to include the currency within its design. ApeCoin DAO’s objective to exchange actual and virtual items is likewise centered on the token.
ApeCoin can be traded on other major exchanges. You can also trade ApeCoin here.
Can ApeCoin be considered a good investment?
ApeCoin is a high-risk investment with the potential to provide massive profits. However, due to anticipation that Yuga Lab’s “Otherside” virtual land auction may be priced in APE, there is likely to be unusually significant volatility in the immediate term.
As a result, if extreme volatility persists, a sensible investor may wait for ApeCoin to settle before investing. Nonetheless, given BAYC’s popularity and strong demand from price-insensitive investors such as sportsmen and celebrities, it’s realistic to expect that investor demand for APE will expand if the BAYC ecosystem continues to thrive.
If you feel the BAYC ecosystem and Yuga Labs will continue to develop and surpass competitors, ApeCoin might be a rewarding method to profit from the Ecosystem’s rising value.
What does the future of ApeCoin look like?
The potential future of ApeCoin has sparked a lot of interest. For example, YugaLabs, the parent company of Bored Ape Yacht Club, recently acquired CryptoPunks and Meebits, two other major NFT projects. And if you look at ApeCoin’s plan, it’s apparent that they’re aiming to create an environment for their brands to connect and trade, using APE as the foundation token.
Furthermore, the founders’ APE allotment is locked up for a year, so there is a strong incentive for them to increase the token’s value over the following year before selling or doing anything with it.
Lastly, many people seem to believe APE will be stakeable, which means you will be able to lock up part (or all) of your tokens and receive rewards. This might be a lucrative source of revenue for BAYC ecosystem HODLers.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn’t represent any investment advice or WazirX’s official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.