ApeCoin (APE): Monkey Business or a Token to Spy?

What is the first thing that pops into your mind upon mentioning the word “ape”? Is it a gorilla, the theory of evolution, or the Planet of Apes franchise? For NFT people, it’s the Bored Ape Yacht Club (BAYC) collection of non-fungible tokens. For crypto people, it’s ApeCoin (APE).
The ApeCoin (APE) cryptocurrency token, a project launched by well-known Bored Ape Yacht Club, powers the APE ecosystem and gives holders access to premium physical and digital events, online games, Web 3.0 services, merchandise, etc. For investors, it offers access to the Web 3.0 ecosystem founded on the Bored Ape brand.
But what makes this token stand out and why are investors keen on it?

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apecoin ape

Illustration: MilicaM

If you are familiar with the NFT mania, you have probably heard of the immensely popular Yuga Labs’ Bored Ape Yacht Club. (BAYC). To expand this idea, Yuga Labs launched ApeCoin (APE), a cryptocurrency that has put itself at the forefront of Web 3.0.  

What is ApeCoin (APE)? 

ApeCoin (APE) is an Ethereum-based (ERC-20) utility and governance token of ApeCoin DAO. The idea behind the token creation was to epitomize the future of culture, art, gaming, and entertainment via blockchain technology and initiatives led by the community around it. In essence, APE could be described as a metaverse token.  

The APE token was created by ApeCoin DAO, a decentralized autonomous organization which acts as its governing body. The DAO sought to empower the community gathered around the APE ecosystem, i.e., the token holders, to participate in decision-making processes concerning the ecosystem. Therefore, the main purpose of the token is to vote for or against community-led proposals and turn ideas into reality.  

Upon its launch in March 2022, APE was airdropped to everyone who owned an NFT from the Bored Ape Yacht Club or Mutant Ape Yacht Club (MAYC), the BAYC cousin collection. Each NFT holder could claim more than $100,000 worth of APE, making this airdrop one of the worthiest in crypto history.  

For those unfamiliar, Bored Ape Yacht Club is among the most popular NFT collections made of 10,000 unique cartoons of apes. During the peak of the NFT boom in 2021, Bored Ape came out as one of the most famous NFTs. What’s more, some of the rarest Apes were sold at hundreds of millions of USD.

bored ape yacht club

Source: OpenSea

The close connection with BAYC and its cousin collections, MAYC, and BAKC, makes ApeCoin (APE) one of top ten cryptocurrencies worth investing in. These NFT collections are some of the biggest on the Ethereum blockchain. As of the time this article was written, the average retail price of a Bored Ape (BAYC) NFT was $110.7k. Celebrities such as Jimmy Fallon, Eminem, and Justin Bieber are among Bored Ape Yacht Club NFT owners. 

How was APE developed? 

The original Bored Ape Yacht Club collection was created by Yuga Labs, a corporation that was established in February 2021 and whose three collections—BAYC, MAYC, and BAKC (Bored Ape Kennel Club) —helped to generate $127 million in income that year.  

Under the direction of the ApeCoin DAO, the APE token was made available in March 2022 and distributed to NFT holders, the ApeCoin DAO Treasury, and additional stakeholders like Yuga Labs, the Cartan Group, the APE Foundation, and its board members. 

Reddit co-founder Alexis Ohanian, Yat Siu of the developer and venture capital firm Animoca Brands, and Harmony Team Member Vera Li are a few of the members of The Ape Foundation Board. Their responsibility is to make sure that the ApeDAO’s decisions, which are made by owners of the APE token, are properly implemented. 

Although Yuga Labs, the company that created BAYC, does not have ownership over ApeCoin, its founders did acquire a sizeable share of the coin’s supply, and the business is identified as a contributor to the project. 

How does APE work? 

As an ERC-20 fungible (interchangeable) token, APE can be implemented in several different ways. According to the token’s creators, APE has four primary purposes: 

  • Governance: APE holders are able to take part in ApeCoin DAO decision-making processes about the direction of the community and future incorporations. 
  • Spending: APE can be employed as a decentralized currency powered by the Ethereum blockchain. 
  • Access: Holding APE can give users access to community benefits like more airdrops or special real-world events. 
  • Incentivization: Creators of novel blockchain projects have an opportunity to include ApeCoin in their projects and thus take part in the Bored Ape ecosystem.  

So, ApeCoin holders, who are at the same time members of the ApeCoin DAO, vote collectively on matters affecting the growth of the ecosystem. This includes how money is distributed, how rules are applied, what alliances to pursue, which projects to embark on, etc. 

The ApeCoin Foundation, which acts as the DAO’s legal representative and promotes the ecosystem’s expansion in various ways, then puts the DAO’s choices into action. The Board is in charge of making sure the community’s vision is carried out as the ecosystem develops.  

Token distribution and tokenomics 

The total supply of ApeCoin (APE) is capped at 1 billion tokens. The supply is fixed, meaning tokens can be neither minted nor burned. In non-crypto lingo, no new tokens can be created, nor are any destroyed. The fixed supply is ensured by Ethereum-based smart contracts that are responsible for crypto creation.  

Out of the total supply, 47% of the tokens were given away to the DAO treasury, while 15% of the tokens were instantly distributed among the BAYC and MAYC NFT holders at launch. 15% was given to Yuga Labs, while 14% was set aside for backers and investors in the project.  

8% of all APE tokens were distributed to the BAYC and the four Yuga Labs founders. Finally, 1% was given to the Jane Goodall Legacy Foundation to support its work promoting environmental projects, educational programs, and conservation. 

Almost 30% of all APE were unlocked at launch. However, the remaining 70% were scheduled to open gradually over the next 36 months, ending in 2026. 

The APE ecosystem 

As already mentioned, the APE ecosystem includes Yuga Labs, an eminent name in the world of NFTs and digital collectibles, Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Bored Ape Kennel Club (BAKC), and the Otherside metaverse. 

Yuga Labs, well-known for founding the Bored Ape Yacht Club, participates in the ApeCoin DAO community. They selected ApeCoin as their main cryptocurrency for all the projects they undertake. 

Bored Ape Yacht Club (BAYC), launched in April 2021, features 10,000 different Apes dwelling on the Ethereum blockchain. These distinctive digital collectibles feature various looks, styles, and rarities. The collection displays profile photographs of cartoon apes that were created using an algorithm. 

Mutant Ape Yacht Club (MAYC), an NFT basket containing up to 20,000 mutant BAYC Apes, assists with integrating new members into the Ape community. 10,000 mutant serums were given to original BAYC NFT holders by airdrop in three tiers to increase the rarity of characteristics. 

The Bored Ape Kennel Club (BAKC), a collection of dog NFTs was made available to every member of the BAYC upon its launch in June 2021. Owners of each Bored Ape NFT have the option to adopt a random Club Dog NFT at the cost of gas. Additionally, BAKC NFTs have their own rarity. 

The Otherside metaverse lands were first released by Yuga Labs at the end of April 2022. The virtual property earned $320 million in 45 minutes and clocked in at $100,000 in value, making BAYC the NFT with the most sales. 

Is APE a good investment? 

Being launched by a vibrant online community as the Bored Ape Yacht Club is, ApeCoin (APE) immediately attracted a steady stream of adopters. People who enjoy gaming, arts, and other forms of entertainment are more likely to use cryptocurrencies. Sales of metaverse land are also expected to boost the value of the token. 

The ability to use APE as a payment method, earn NFT awards, and gain access to premium features inside the APE ecosystem are just a few of the many reasons why people choose to buy ApeCoin. Despite all of these characteristics, you still need to exercise caution because the coin is inherently linked to NFT-related volatility. 

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