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What is the Apecoin Cryptocurrency

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02.11.2023
5min.
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What is ApeCoin: How Do I Use it

Get ready for an exciting journey into the world of APE, where monkeys, yachts and blockchain reign supreme! In this article, we will get to know ApeCoin, its history and how it is related to the famous Bored Ape Yacht Club (BAYC) NFT collection. Some say that this is a meme-coin, which has little time to live. Others believe that this is the most successful example on the market of building a strong crypto community with the involvement of world-class opinion leaders. By the end of the article, you will be able to decide whether to buy a token or not.

How does ApeCoin work

First, what is ApeCoin? This is both a native, utility and governance token in the APE ecosystem.

Technical parameters of the APE token:

  • Contract: 0x4d224452801ACEd8B2F0aebE155379bb5D594381.
  • What chain is ApeCoin on: Ethereum.
  • ApeCoin smart contracts have been audited by CertiK and Chainsulting auditors.
  • The maximum issue is 1,000,000,000 APE (1 billion).
  • At the time of writing, there are 368,593,750 APEs in circulation (about 37% of the maximum).
  • The estimated market cap of the token at the time of writing is $1.5 billion. At its peak in April 2022, this number reached $6.7 billion.
  • Official website: apecoin.com.

The bulk of the holders are members of the APE ecosystem, including early adopters who collected NFTs even before the emission of the native token. Also, a significant proportion are investors who do not participate in the ecosystem, but hold the token along with other altcoins in their diversified portfolio. Historically, demand for a token rises when a team releases new collections, products, or events. This was the case in 2021 and 2022.

How did ApeCoin develop

ApeCoin is designed by the American company Yuga Labs. The APE project began with the NFT Bored Ape Yacht Club collection, released in the spring of 2021. You must have heard about this collection — these are the very NFT monkeys that were on the hype in 2021-2022. On launch day, the entire collection of 10,000 images sold out in just 12 hours of release. This article is dedicated to the token, but it is simply impossible to discuss APE outside the context of NFT, since the history of APE began with the collection of non-fungible tokens.

The basic layout of the monkeys was rendered by an artist known as All Seeing Seneca. He set the shape of the images. Smaller details were automatically generated by the algorithm. That is why 10 thousand images are so similar to each other.

You may ask what Yacht Club stands for in the name of the collection. There is a mini-story behind this. According to legend, the characters of the collection live in the 2030s in the world of winning crypto. And those who became crypto investors before it became mainstream were already so rich that they had time to get tired of life. That is why they are Bored. So, BAYC is a closed “yacht club” for crypto millionaires.

In the end, the name justified itself. NFTs have become so popular that now only millionaires can truly afford to own a collectable. To date, the Floor Price of the collection is $110,000. The most expensive NFT collections were sold for over $1 million. BAYC's TOP 3 most expensive items are:

  1. Bored Ape #8817 — $3.4 million
  2. Bored Ape #3749 — $2.9 million
  3. Bored Ape #232 — $2.9 million

In many BAYC deals, famous artists and celebrities have been buyers, including Madonna, Justin Bieber and Eminem.

After initial success, BAYC became a pop culture icon. Yuga Labs continued to develop its ecosystem, releasing two more NFT collections, and creating the same ApeCoin (APE) and the Otherside metaverse. Today, APE is used as the currency to pay for numerous Yuga Labs products.

When did ApeCoin launch

The token itself appeared almost a year after the release of the collection. ApeCoin launch date is March 2022 (the NFT collection, as we remember, appeared in April 2021). Despite the fact that the token appeared later than the collection, and became more of an additional link in the ecosystem than a fundamental one, the capitalization of the token today exceeds the entire capitalization of the collection. At the time of writing, the capitalization of the ApeCoin (APE) cryptocurrency is about $1.5 billion, while the capitalization of the Bored Ape Yacht Club collection is only $1.1 billion, considering when did APE coin launch.

What is the APE ecosystem

The ecosystem includes APE holders as well as all related products and services, namely:

  • 3 NFT collections: Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Bored Ape Kennel Club (BAKC).
  • The Otherside Metaverse is a virtual game world that combines NFTs and other elements of the Web3 MMORPG genre.
  • Merch, events and other status and entertainment features.
  • Decentralized Autonomous Organization.

ApeCoin DAO is one of the key elements of the ecosystem. Decentralization is critical to the creation and management of blockchain projects, and any modern project strives for maximum decentralization and self-governance, and APE is no exception.

The APE governance will allow ApeCoin DAO members to make decisions regarding fund management, partnerships, and so on. The DAO community chooses even the top management of the project. For the first six months, the Board included the first authors of the project, and after 6 months, the Board was already elected by democratic voting. ApeCoin DAO membership is open to all ApeCoin holders.

How is the APE token used

APE is used as a means of payment within the APE ecosystem. It can be used to buy exclusive merch, access to private events, as well as items inside the Other side metaverse.

On top of that, ApeCoin can be used for trading and investment. Also, buying and holding a native token helps the ecosystem. As a food token, APE can act as a “share” in a decentralized company.

What is ApeCoin price prediction

Today, the price at the time of writing is $4.16. Now we can build on the forecasts for the APE cryptocurrency on the Coinmarketcap and CoinGecko sites. Let's compare both estimates to get the big picture.

Coinmarketcap: The average forecast is $5.5 by July 2023, followed by a price drop to $4.4 in August. The ratio of positive and negative forecasts is 85 to 15.

ConinGecko: The platform does not allow accurate predictions, but the ratio of positive to negative ratings there is 59 to 41.

However, you need to understand that these estimates may not reflect the real state of affairs, as holders tend to deliberately set up optimistic forecasts in order to pull the price of their asset up. As always, DYOR.

Is ApeCoin a good investment

Cryptocurrency ApeCoin (APE) is a utility token, which means that its prospects are directly related to the prospects of the APE project. Such an investment is considered riskier than investing in standalone assets like BTC and ETH. This does not make it a bad investment, but such an asset requires attention. You can add APE to your portfolio and follow the project news. Certain announcements, insiders or hidden signals may push you to buy or sell an asset at one time or another, depending on the situation. It would be imprudent to hold such an asset for a long time without looking back at the news background.

Of course, here you will not find a direct recommendation “to buy or not”, but only general information about what is ApeCoin and what it is eaten with. The decision is ultimately up to you.

Where to buy ApeCoin

APE is available on many centralized and decentralized exchanges. Open data show that the volume of trading on the CEX significantly exceeds the volume on the DEX sites, which, however, is typical for most assets. However, trading on the DEX is more transparent and safer since you fully own your funds and do not trust them to a third-party platform.

So, where to buy ApeCoin? APE is available on the WhiteSwap exchange paired with other ERC-20 tokens.

Conclusion about ApeCoin

Now that you know what is ApeCoin crypto, where it comes from and how it can be used in the ecosystem, you can make an informed investment decision. You can buy or exchange the ApeCoin (APE) cryptocurrency on a crypto exchange in the Ethereum network, for example, on the transparent decentralized exchange WhiteSwap.

Your DEX. Your Rules.

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