Apecoin is a recent cryptocurrency but has attracted attention with its rapid price increase, always being in the top 100 cryptocurrencies by market capitalization. But what exactly is APE coin and why is it getting so much attention? Is APE coin a potential investment? Let’s find out more in the article below.
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What is APE coin, should you invest?
How was APEcoin created?
Before understanding more about what APE coin is, you should know about Yuga Labs, a company behind the extremely famous and expensive Bored Ape Yacht Club NFT collection.
Bored Ape Yacht Club (BAYC) is a collection comprising 10,000 NFT APES, each with unique characteristics. By purchasing these Apes, you gain access to future BAYC collections and other privileges as a BAYC member.
Additionally, BAYC holders can turn their Apes into Mutant Apes (Mutan Ape), abbreviated as MAYC, using serum distributed via airdrop.
Did you know, these collections have become extremely famous over the past year, grossing over 1 billion dollars. The main reason for these NFT monkeys being so expensive is that over 20 celebrities have purchased them, such as Serena Williams, Jimmy Fallon, and Snoop Dogg, La Melo Ball, Dez Bryant, Von Miller, DJ Marshmello, rapper Lil Baby, producer Timbaland, Mike Shinoda of Linkin Park…
Why do I mention these things?
Because Yuga Labs is the company behind this APEcoin project.
Notably, Yuga Labs has also acquired two massive Ethereum NFT collections: CryptoPunks and Meebits.
Why did they create APEcoin? Because Yuga plans to expand their field, not just selling monkey NFTs, but aiming to sell “virtual land” as a kind of metaverse.
“We want to build something to expand the universe of BAYC, especially to grow a larger NFT community, not just confined to BAYC members. – The company explained in their statement.
And the first step for this is the launch of the APEcoin token (APE).
However, Yuga Labs is not the creator and manager of this token; they have delegated this authority to a decentralized autonomous organization: ApeCoin Dao.
What is ApeCoin DAO?
ApeCoin DAO, supported by Ape Foundation, will empower the community to develop blockchain games and services, organize events (in the metaverse or IRL), and create digital and physical products… along with anything else you can dream of.
Unlike some DAOs – where NFTs can be used as voting tickets – ApeCoin DAO only requires members holding ApeCoin tokens to participate in voting and community-based management.
Alexis Ohanian, co-founder of Reddit, is on the board of ApeCoin DAO, along with Amy Wu from FTX, Yat Siu from Animoca Brands, Maaria Bajwa from Sound Ventures, and Dean Steinbeck at Horizen Labs.
What is APE coin?
Ape coin (APE) is the native governance token, empowering the decentralized community building of the APE ecosystem. The APE ecosystem includes the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), two of the most popular NFT collections on the Ethereum blockchain.
ApeCoin holders manage themselves through a decentralized governance framework controlling ApeCoin DAO and voting on how to use the ApeCoin DAO Ecosystem Fund. The APE organization oversees proposals agreed upon by ApeCoin owners.
Though managed by Apecoin Dao, ApeCoin also announces its advisory team, including notable names such as Reddit co-founder and 776 investment fund founder Alexis Ohanian, FTX Ventures manager Amy Wu, and Animoca Brands founder Yat Siu.
The APE token is an ERC-20 token, operating on the Ethereum blockchain.
Uses of Apecoin:
- Used for governance in ApeCoin DAO.
- Encourage third-party developers to participate in the APE ecosystem.
- Provide access to products and services.
- Serve as currency within the Bored Ape Yacht Club ecosystem, and provide access to future products.
- ApeCoin will also be accepted in the Benji Bananas video game, developed by Animoca Brands.
How many APE coins are there in total?
The total maximum supply of APE coin is 1 billion APE (1,000,000,000).
Although the supply is large, most of the tokens have been distributed to stakeholders in the following proportions:
- 9.75% of tokens will be held by Yuga Labs.
- 6.25% gifted to the Jane Goodall Legacy Foundation.
- 14% allocated to project builders.
- 8% given to the four founders of Yuga Labs.
- 47% for community development fund.
- 15% allocated to NFT BAYC and MAYC owners (BAYC owners get 10,000 APE tokens/1 NFT, while MAYC owners get 2000 tokens).
There will be 150 million APE tokens available for airdrop, as well as 470 million for “treasury and DAO resources”, with 117.5 million unlocked immediately and disbursed at 7,343,750 per month over the next four years.
Should you invest in APE coin?
As I mentioned above, the launch of the APE coin is just the first step in Yuga Labs’ plan to expand the Bored Ape Yacht Club universe in the coming years. They plan to sell virtual land in the metaverse, then develop an NFT game, and APE coin will become the main currency in their ecosystem.
To evaluate this project, I see it has several positive points:
- Backed by a new but extremely popular company with huge revenue in the NFT sector.
- Well-known and especially supported by some celebrities.
- Collaboration with investment fund Animoca Brands (specializing in NFT, Gaming, Metaverse) for development.
- Benefiting from the trend of NFT, gamefi, Metaverse in today’s cryptocurrency space.
- Listed on many leading exchanges immediately upon launch (not something every coin can do), proving the strong appeal of APE coin.
- Supported by a large community, actively promoting APE coin through social media platforms like Reddit, Twitter, Discord, Telegram, Instagram, and Facebook.
- The Ape coin ecosystem has room for growth: although nothing is certain, looking at the top coins today a few years ago – they also started from nothing, but are now very successful. Apecoin is just at the beginning, but that means it has many things to explore in the future.
However, it also has many limitations. So, what are the limitations of APE coin?
- Although the price of APE coin has increased sharply and its market capitalization is higher than many other coins, most people buy it due to FOMO, so ApeCoin (APE) is very susceptible to losing value.
- APE coin currently lacks practical applications in the real world, so it’s nothing more than a speculative coin.
- Although Apecoin has plans to expand into the metaverse, currently it has nothing at all, everything is just at the beginning, so it’s unclear how successful the upcoming plans will be?
- The field APE coin is targeting has, is, and will face fierce competition, as there are many other coins that have preceded it and have been very successful, such as: Decentraland, The Sandbox…
So, should you invest in APE coin? I think that at the time you are reading this article, buying APE coin now is mainly due to FOMO, so the risk is quite high. However, if you still want to “take a chance”, you can buy with a very small amount (extremely small) to try your luck.
As for me, I don’t rate Apecoin highly in the long term, because currently, it really doesn’t have much potential to become a useful project or explode in value in the distant future. Everything still has to wait on time, to see what plans the Apecoin team has and what they can accomplish. Only then can a proper decision be made.
Additional information:
- Apecoin’s website: https://apecoin.com/
- Apecoin’s Twitter: https://twitter.com/apecoin
Above are our answers about what Ape coin is and whether it has potential or not. Note that all opinions should only be taken as references, not investment advice. So, consider carefully and allocate your capital wisely for smart investment decisions. Wish you success.
