What is ApeCoin (APE)?

What is ApeCoin (APE)?

What is ApeCoin (APE)?

You’ve heard of Dogecoin and Shiba Inu Coin, but what about ApeCoin?

Even though ApeCoin has captured the imagination of investors in a similar manner, it will be (potentially) much more than just a meme coin. It’s actually linked to one of the most hyped up and successful NFT projects of all time – the Bored Ape Yacht Club.

But what is ApeCoin? Let’s ape in to find out!

    What is ApeCoin (APE)?

    ApeCoin had the crypto community abuzz when it was airdropped to holders of Yuga Lab NFTs – Bored Ape, Mutant Ape or Kennel Club NFTs – on 17 Mar 2022.

    Owning a Bored ApeNFT is already a success story to begin with. It cost just 0.08 ETH or less than $200 to mint one back in April 2021, and now the floor price or the cheapest Bored Ape you can buy off the shelf is around 100 ETH or $300,000.

    The most expensive Bored Ape sold at Sotheby’s auction house for an eye-watering $3.4 million. What’s more, mega celebrities such as Snoop Dogg, Justin Bieber, Gwyneth Paltrow and Paris Hilton are also owners. Being a Bored Ape NFT holder also comes along with other benefits such as membership-only access to exclusive games and events in both the metaverse and in real life.

    Most expensive Bored Ape ever
    The most expensive Bored Ape ever sold

    So how did ApeCoin come into the picture? In what has been a massive expansio program, the company behind Bored Apes, called Yuga Labs, announced the airdrop of ApeCoin with the ticker symbol $APE to all Bored Ape holders. Each Bored Ape NFT is entitled to 10,094 $APE, which was worth about $170,000 near its peak price of $17 on 18 Mar 2022.

    Owning a Mutant Ape or a Kennel Club NFT would have also boosted the airdrop amount even more.

    ApeCoin is slated to become the center of a whole new Web3 build-out that includes games, virtual land, culture, community and governance. But it’s worth noting that none of this has actually been built yet, so at the moment, as with many projects in the crypto space, the coin is entirely speculative.

    The coin is also being made available for third-party developers. One of ApeCoin’s first integrations will be with the Android game Benji Bananas, which has been available to play for a few years, but is now switching to the play-to-earn model, and planning to use ApeCoin as the main, in-game currency.

    What is ApeCoin DAO?

    It’s worth mentioning here that ApeCoin was not actually developed by Yuga Labs, but by The Ape Foundation, which founded ApeCoin DAO.

    ApeCoin holders automatically belong to ApeCoin DAO, or a decentralized autonomous organization where $APE holders will be able to use their tokens to vote on ecosystem improvements and how funds should be used.

    The Ape Foundation is made up of some of the movers and shakers in the crypto and Web3 space and is responsible for helping to administer functions of ApeCoin DAO and other ApeCoin activities:

    • Alexis Ohanian, co-founder of Reddit
    • Amy Wu, head of gaming at FTX
    • Maaria Bajwa, principal at Sound VenturesYat Siu, co-founder and chairman of Animoca Brands behind The Sandbox
    • Dean Steinbeck, president and general counsel at Horizen Labs

    Yuga Labs is also building out a metaverse called MetaRPG with BAYC LAND NFTs so that Bored Ape NFTs will soon have digital real estate to hang out at. Not much is known yet about these digital land plots, but a leak of an investor pitch deck has shown plans of releasing 200,000 plots of BAYC LAND NFTs at a price of 1 ETH each.

    The relationship between ApeCoin and Yuga Labs

    ApeCoin’s vision is to become the most recognizable metaverse token, used as the main digital currency in multiple integrated games and interconnected metaverses.
    But some critics of the token airdrop have emerged online, pointing out that, although ApeCoin and Yuga Labs are two separate organizations, with ApeDAO being supposedly decentralized and Yuga Labs being a more centralized entity, 150 million of the total 1 billion supply of APE was given to Yuga Labs.

    The risk here is that the Yuga team, who are supposedly only “community members” of ApeCoin DAO, will have too much power over the token, including the ability to crash the price by cashing in after token unlocks (like the Ripple team has supposedly done with their “independently created” XRP token) and an oversized role in community governance.

    Secondly, the creation of ApeCoin may give the community some power to make decisions in ApeCoin DAO, but if Yuga Labs are the main company pulling the strings on new developments, how much influence will ApeCoin holders have over the direction of the Yuga team?

    In this way, the ApeCoin model looks more like web 2.0 than web3. Nevertheless, with one of the strongest crypto communities around and some of the brightest minds in the space leading the project, there is no doubt that ApeCoin can capitalize on the success of the BAYC brand and attract plenty of interest early on.

    Despite the concerns, APE has created quite the stir since its release, and plenty of investors will be looking at ApeCoin for their gainz in 2022.

    This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

    Get insider crypto knowledge and product updates from the world’s leading crypto wallet
    Sign me up