Since its inception, the Bored Ape Yacht Club has been a sizzling topic in the NFT marketplace. The sudden ripple of its acceptance among crypto enthusiasts and celebrities exalted BAYC to a premium NFT class. While the famous and influential personalities were endorsing BAYC NFT openly, something was brewing in the backend – ApeCoin.
When the enthusiasm for the BAYC NFT was at its peak, the fans were stunned by the launch of ApeCoin, a cryptocurrency with strong future prospects tied to it.
After a long wait, ApeCoin became a reality. The Bored Ape NFT stays ahead of other standard NFT collections because of its real-time utility. So investors are optimistic about the power and the future of the ApeCoin.
It is essential to understand that ApeCoin is not officially launched by Yuga Labs, the parent company of Bored Ape Yacht Club. Thus, Yuga Labs takes no responsibility for ApeCoin.
Are you scratching your head on how to get around this new coin?
This article takes a closer look at ApeCoin and how it sets itself apart from other tokens in the cryptocurrency market.
What is ApeCoin?
ApeCoin is the governance and utility token that is designed to act as a driving force behind the Bored Ape Yacht Club community and projects associated with it. It emerged as a membership token for the ApeDAO responsible for the governance of ApeCoin Token.
Later on, Yuga Labs came forth to outline the potential ApeCoin holds for the crypto community at large. It revealed that the coin’s utility will soon blend into underlying NFT projects, the metaverse, and games.
To everyone’s surprise, Yuga Labs was on point with the launch of the Otherside metaverse project whose exclusive token was none other than the ApeCoin. We’ll get back to that later, first let’s cover how it has come into the scene of evolving cryptocurrencies.
Covering the straight facts, ApeCoin is the native cryptocurrency of the APE ecosystem. In simple words, ApeCoin is an ERC-20 token on the Ethereum blockchain.
The ApeCoin is represented with a ticker symbol $APE and secured by Proof of Work consensus (PoW).
After long waits by the BAYC fanatics, on 17th March, ApeCoin announced its arrival through Twitter. The next day, ApeCoin was launched and airdropped to Bored Ape and related NFT owners of the Ape ecosystem.
ApeCoin will function as a governance token for the APE ecosystem. Besides, $APE will be used in Web3 initiatives of the APE ecosystem.
According to its official website, $APE is designed for and controlled by the community. It will operate as a decentralized protocol layer for community endeavors.
Holders of ApeCoin will get access to certain parts of the ecosystem that are otherwise unavailable. For third-party creators, ApeCoin acts as a means to participate in the ecosystem.
Who is behind ApeCoin?
ApeCoin is a product of ApeCoin Decentralized Autonomous Organization (DAO). The Ape Foundation oversees the growth and development of the same.
Let’s dig deep into how this sophisticated yet controversial ‘Ape-powered’ currency works.
Consider ApeCoin DAO and Ape Foundation as two pillars of ApeCoin.
The Ape Foundation is like the guardian of ApeCoin. It is responsible for project management, record keeping, coordinating DAO actions, and other day-to-day activities.
Further, the Foundation ensures decentralized governance and is directly involved in the actions of ApeCoin DAO. It hopes to be more decentralized over time.
ApeCoin DAO stands to offer decentralized governance for the ecosystem. It streamlines transparent decision-making regarding governance rules, fund allocations, and partnerships.
All ApeCoin holders are ApeCoin DAO members. Participants in the virtual organization will be able to vote on proposed changes related to ApeCoin DAO.
Additionally, it has a 5 member “Board”, a special council of the Ape Foundation. The board finalizes proposals that require administrative reviews.
The current special board will serve for a duration of six months. New board executives will be elected annually by the DAO members.
ApeCoin protocol, APE foundation, ApeCoin DAO, and special board are the main parts of the project.
Yuga Labs, the company behind BAYC NFT, presented a special one-of-one NFT to ApeCoin DAO.
All rights and privileges associated with the logo’s intellectual property are transferred to ApeCoin DAO along with this NFT. The ApeCoin DAO is responsible for determining how the IP will be used.
According to Yuga Labs CEO, Nicole Muniz “Yuga Labs will continue to be builders of products and experiences that bring new ideas and energy to the community.”
Yuga Labs intends to adopt ApeCoin for all of its products and services.
ApeCoin DAO granted back 1 billion ApeCoin tokens to Yuga Labs to strengthen the tie-up. Besides, it shows their respect for the founders and VCs, who have supported the project. The token also ensures their governing rights in the DAO.
What are the uses of ApeCoin?
Yuga Labs has high hopes for incorporating ApeCoin into its future plans, stating on its website that holders would be able to access exclusive products, events, and services with ApeCoin. Some of the other use cases are:
- Governance
The $APE gives its holders voting rights on project proposals and membership in the DAO.
- Utility purposes
Holders of ApeCoin can employ the token for services and transactions without any interference from the centralized authority.
- Accessibility
ApeCoin provides holders accessibility to the APE ecosystem that is otherwise unavailable. For instance, exclusive games, events, merch, and other services.
- Incentivization tool
Third-party developers can contribute to the APE ecosystem through games and services using ApeCoin.
What is the tokenomics of ApeCoin?
ApeCoin has a fixed supply of $1 Billion $APEs. There is no minting capability. Hence, the coin supply cannot increase in the future. Additionally, since there is no burning capacity, the collection of coins does not decrease also.
Distribution details of ApeCoin
- 62% of the total token has been allocated as the ecosystem fund. Among these, 150 million $APE was given to BAYC/MAYC. A total of 470 million ApeCoins were allocated to the DAO Treasury and Reserves.
- 16% of the total ApeCoin is assigned to Yuga Labs and charity. Ten million tokens are donated to Jane Goodall Legacy Foundation, and the remaining 150 million are locked for Yuga Labs.
- 14% of the $APE is reserved for launch contributors, including organizations and people behind the project.
- 8% of the total supply is set aside for the four creative brains behind Bored Apes a.k.a the BAYC founders
Importantly, distributed tokens are locked for an initial 12 months period. Therefore, the holders can’t dump the tokens immediately.
BAYC and MAYC members can claim their ApeCoins during the initial 90 days.
Those who own a Bored Ape can get 10,094 tokens, which is a good amount of money based on ApeCoin’s current trading price. Mutant Ape Yacht Club members are allowed to claim 2042 tokens for each Mutant Ape they possess.
Holders of NFT pairs in their wallets can earn a higher number of tokens. Bored Ape and Kennel Club holders can get 10950 $APE. At the same time, Mutant Ape and Kennel Club can claim 2898 ApeCoins.
The APE ecosystem followers envision that ApeCoin will be used to purchase digital land, games, and other Metaverse activities in the future.
ApeCoin and Controversy
As mentioned before, ApeCoin is not directly from Yuga Labs, but it is from ApeCoin DAO. Still, the hype surrounding Bored Ape NFTs was reflected in ApeCoin during its launch.
The $APE spiked after listing. It surged somewhere around $40 but dragged to $8 and has now settled around $12 to $14.
Some Bored Ape and Mutant Ape holders who had already got airdropped tokens enjoyed the profit booking at its high prices.
Seems gripping, right? Then what is the controversy surrounding it?
What is it that backed ApeCoin to begin at such a high price?
There is still chaos surrounding the association between Yuga Labs and ApeCoin DAO. The first question is to what extent ApeCoin DAO can be involved with the parent company of BAYC NFT?
Secondly, what are all the services and projects accessible in the BAYC ecosystem with ApeCoin?
Yes, owning a $APE token makes you a member of the DAO. However, it only gives you the authority to vote on DAO topics and to elect the board members.
According to experts, ApeCoin owners are merely shareholders of an imaginary entity. The illegality raises concerns about its regulation and protection.
Moreover, Bored Apes are valuable NFTs. So investors may think a cryptocurrency with the same tag must be valuable. But here the price rise is a kind of user-generated momentum.
In the future, the price may also surge and slip based on the excitement coming from BAYC. When there is an enormous demand, and acceptance for BAYC NFT, it will advance ApeCoin’s price.
Culmination
The crypto community has greeted ApeCoin with open arms, despite the hype surrounding Bored Ape NFTs. $APE soared over 1000 percent shortly after its debut, putting it on the multi-bagger list.
Investors who could not afford a BAYC ape hurried to buy an ApeCoin because it is less expensive than an Ape NFT. Furthermore, the goal is to not lose out on a fantastic opportunity to get the coin at a low price.
The value of ApeCoin in the cryptocurrency market will be mostly determined by BAYC. The amount of utility it has with BAYC and its other projects will determine its success.
Yuga Labs gives the coin high hopes of being used in future projects and products. If all the promises are fulfilled, ApeCoin could be on the rise. Otherwise, we can only hope for some positive response.
However, like any other cryptocurrency, ApeCoin is looking forward to value addition. ApeCoin investors expect $APE’s growth to be similar to that of BAYC NFTs.
FAQs
- What is the Ape ecosystem?
The APE ecosystem consists of Bored Ape Yacht Club (BAYC) members, Mutant Ape Yacht Club (MAYC) and Bored Ape Kennel Club (BAKC). It is also referred to as the BAYC ecosystem.
- How to buy ApeCoin?
ApeCoin is listed on major cryptocurrency exchanges around the world including Binance, Coinbase, Kraken, FTX, and Gemini among others.
Individuals can buy $APE by creating an account on any of the convenient platforms.
- Does ApeCoin have a future?
Since its launch, ApeCoin has made major waves in the crypto community. The climbing price of ApeCoin is a result of Yuga Labs’ Otherside Metaverse project, whose exclusive token to participate in is ApeCoin.
The Otherside project is well-received by BAYC fans, cryptokeens, and investors as it is also associated with prominent NFT projects like World of Women, Cool Cats, and CrypToads, among many others
- How is ApeCoin used in the Otherside Metaverse Project?
ApeCoin is the currency to participate in Yuga Labs’s Otherside metaverse which is a virtual world connected to the BAYC ecosystem in the form of an open MMORPG. The Otherside Metaverse introduced land NFTs called Otherdeeds that can only be minted using ApeCoin which adds to its long-term utility in the project.
- Why is ApeCoin hyped?
Most of the investors, who are not much digging into the facts, believe that ApeCoin is directly from the parent company of Bored Ape Yacht Club. However, Yuga Labs has launched its Otherside project signaling apparent ties with it.
Investors have the satisfaction of holding the cryptocurrency of a premium Club irrespective of its future utility. But crypto specialists are confused that the ApeCoin surge is merely a bubble since it is not directly from Yuga Labs.
