What is ApeCoin? Is It a Beneficial Investment? 2022
Do you know about ApeCoin? The Bored Ape Yacht Club’s NFT collection is among the most popular. Each NFT symbolizes a new color scheme, face expression, and outfit for a cartoon ape.
However, many individuals appear bewildered by the price of these digital artworks.
In the past week, 335 NFTs of the Bored Ape Yacht Club have been sold for a total of $95.48 million. One NFT from the BAYC costs $285,000 on average.
On March 16, 2022, Yuga Labs (the creators of BAYC) introduced ApeCoin, a new cryptocurrency. ApeCoin was developed by Yuga Labs. 5 minutes into its first trading day, the currency’s value had peaked.
ApeCoin will be a “token for culture, gaming, and commerce that will be used to empower a decentralised community at the vanguard of Web3 development,” according to the company.
The Coin will serve as a decentralized protocol layer for community-led endeavors to enhance culture in the metaverse, organize events, and produce digital products and anything else imaginable.
In this essay, we will examine ApeCoin and better understand it.
What exactly is ApeCoin?
ApeCoin, often known as APE, is the native cryptocurrency of the Bored Ape Yacht Club(BAYC) ecosystem, the most popular collection of non-fungible tokens (NFTs) on the Ethereum Blockchain. It is an ERC-20 utility and governance token utilized within the APE ecosystem.
It is also the utility token of the ecosystem and can be used to purchase products and services.
The Coin is anticipated to function as a ‘gate token,’ providing access to particular ecosystem components, such as specific games and events.
APE has distributed 150,000,000 tokens to BAYC NFT holders via airdrop. The owners of APE NFTs are eligible to receive 10,950 APE.
It is a coin that may be freely bought and sold on a decentralized exchange, a form of a digital marketplace for cryptocurrencies.
ApeCoin Token Economic
ApeCoin has a market valuation of about $2 billion after just one day of trading due to its scarcity, as the total supply of tokens is capped at one billion.
The total supply is separated into the following classes:
The distribution of airdrops relies on whether NFT owners possess a Bored Ape or a Mutant Ape and whether the NFT is partnered with a Bored Ape Kennel Club NFT. The ecosystem fund airdropped 150 million tokens to the holders of BAYC-related NFTs.
The distribution is as follows:
Bored Ape NFT = 10094 tokens
Mutant ape = 2042 tokens
Bored Ape + Kennel Club = 10950 tokens
Mutant Ape + Kennel Club = 2898 tokens
To provide a fair launch of ApeCoin for holders of BAYC and MAYC NFTs, the allocation is based on the difference in floor price between each collection of NFTs. Both BAYC and MAYC have a claim term of 90 days.
After that, the unclaimed tokens are contributed to the Ecosystem Fund.
The DAO’s treasury and resources will receive 470 million tokens from the same pool, of which 117,500,000 will be unlocked upon launch, and 7,343,750 will be released monthly for the next 48 months.
It is essential to remember that there is no way to generate additional tokens and no capacity for burning. The intention is to maintain a consistent supply.
DAO and The Ape Foundation
The APE Foundation is responsible for managing ApeCoin. It is not an administrator but the Foundation upon which ApeCoin DAO holders can build.
The Foundation intends to become even more decentralized over time as it promotes decentralized and community-led governance.
It is accountable for day-to-day administration, bookkeeping, project management, and other responsibilities that ensure the ApeCoin DAO community’s ideas receive the necessary backing to become a reality.
The objective of the APE Foundation is to guarantee that the APE ecosystem thrives and evolves equitably and inclusively.
It pays its expenses as directed by the ApeCoin DAO using the Ecosystem Fund, which is maintained in a multi-signature wallet and provides a platform for ApeCoin holders to participate in open and permission less governance procedures.
ApeCoin DAO (Decentralized Autonomous Organization) exists because decentralized governance is necessary for building and maintaining a globally dispersed community.
All ApeCoin holders are eligible to join the ApeCoin Decentralized Autonomous Organization. Through the APE Improvement Proposal Process, members can make decisions regarding Ecosystem Fund allocations, governance rules, initiatives, and partnerships, among other things.
How to Purchase ApeCoin (APE)
APE has already been traded and listed on several top exchanges, including Binance, Coinbase, FTX, Huobi, KuCoin, By bit, Kraken, and others.
If you do not already have one, opening a bitcoin exchange account takes only a few minutes.
Create an account online.
Download one of the applications mentioned above and initiate the account creation procedure.
Get a wallet (optional).
While it is generally safe to deposit cryptocurrency on large exchanges, storing most of your assets in a hardware wallet is advisable. Hardware wallets safeguard against online hacking by storing cryptocurrency offline.
Enter the amount you wish to purchase and add a bank account-based payment method.
Growth In The Long Term Or NFT Bubble?
ApeCoin has had great development since its inception. The Coin’s listing on most major exchanges, including Binance, Kucoin, CoinBase, and FTX, has propelled it into the top 30 cryptocurrencies by market capitalization. Evidence shows that a gradual decline may not follow ApeCoin’s steady ascent.
First, around 260 million ApeCoins sent to various parties are locked and will be released over the following six to forty-eight months. Once these coins are freed, their owners will likely sell them, which could cause a price drop.
According to research from Santiment, the Coin is currently overvalued. The paper uses the Market Value to Realized Value (MRVR) model to illustrate the disparity between ApeCoin’s actual market capitalization and its realized value. It indicates the likelihood of a sell-off and emphasizes the fragility of ApeCoin’s ascent.
Is Apecoin an Attractive Investment?
Since the introduction of ApeCoin, interest in the cryptocurrency market has surged by 17.42 percent. With a current market cap of $3,750,250,226 USD, it is currently ranked #35 by Coin Market Cap.
The cryptocurrency market is turbulent. APE is in its infancy in the crypto realm, making it difficult to predict its future market value.
Due to the current crypto market enthusiasm, the Coin may suffer a short-term boost. Still, there is insufficient evidence to determine whether this would be a viable long-term investment.
Invest if you’re willing to assume such risks and, if necessary, absorb any losses.
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