Recently, Apecoin has garnered a lot of attention, and there have been a lot of talks about $APE being a pump and dump. So, today, we’ll take a deep dive into APE to find out if that is really true.
So what is Apecoin?
ApeCoin is ostensibly the official token of the Bored Ape Yacht Club and acts as a reward for holders of Bored Ape NFT collectibles. It might also interest you to know that BAYC was created by Yuga Labs and first launched in April 2021.
Before we continue, I’ll do a bit of self chill.
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The BAYC ecosystem is built on Ethereum’s ERC-20 token standard and therefore, uses Apecoin as its governance and utility token. It’s a decentralized token that can be used for payments and transactions within Web3 apps of all sorts and serves the Bored Ape Yacht Club community and related communities. Apecoin shot up in value by 1388.44% in its first 24 hours of trading but has since come to a more reasonable price of $6.8 with a market cap of ~$1.98b.
• A total of 62% of the total supply is allocated to an ecosystem fund.
• 14% was given to “launch contributors.”
• Yuga Labs, the creators of BAYC, owns 9.75 percent of the tokens.
• 8% of the tokens will be distributed directly to Yuga Labs’ founders.
• 6.25% of the proceeds were donated to the Jane Goodall Institute.
The cryptocurrency is traded on some of the biggest exchanges, such as Binance, FTX, Huobi, KuCoin, Bybit, Kraken, and so on.
When talking about Apecoin, there are a lot of questions to be asked. Things like:
How does the value of currency change when it can be programmed to allow for additional utility other than spending it? If Yuga’s metaverse, digital country, and the digital economy become one of the largest in the overall metaverse, how valuable will its currency be?
These are all questions that are extremely complicated and highly speculative to answer and subject to many variables that are simply unknown.
Well, Yuga is essentially creating a digital country, a digital world, and a digital economy that is not bound by geographical borders and can reach anyone with an internet connection. Right now, $ape is susceptible to market downward volatility, but overall, we think the price will go sideways for a bit until one of two things occur. It’s either Yuga labs does a new mint of something, or they add some game-breaking utility. One of those two things has already happened when Opensea made Apecoin, a coin you can buy NFTs with. It increased trade volume for $APE since a lot of Apecoin was spent minting the Otherside NFTs, and the supply of Apecoin has also dropped.
This may have some effect on the price in the long run, but not a lot.
Everything is just dependent on the market, and on the next step, Yuga labs and the DAO are going to take. Overall, we think Apecoin is a good investment but should be followed with caution. The project behind it is great. Yugalabs and the DAO will do great things.
A lot of things would have to fall into place for this to happen, and it is very, very very early and highly speculative, but nonetheless, I hope this helps explain everything you need to know about Apecoin.
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