The Bored Ape Yacht Club or BAYC NFT collection is one of the significant trends in the world of NFTs in recent times. As one of the popular NFT collections, it has become more than an assortment of digital cartoon characters. The BAYC ecosystem has recently come up with ApeCoin APE for delivering something of utility to the community owners. After all, many experts in the domain of crypto and NFTs have pointed out how ApeCoin can deliver favorable advantages.
Many people have been wondering about the factors which apparently add value to the non-fungible tokens. Anyone would wonder about how digital artworks and cartoons like the BAYC NFTs can fetch high prices in the market. The following discussion will provide a detailed introduction to ApeCoin crypto and its tokenomics, alongside its significance in the evolving NFT landscape.
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Why Is Everyone Worried about ApeCoin?
Before you find out more about the cryptocurrency ApeCoin, it is important to notice the background of the project. As a matter of fact, the BAYC NFT collection registered around 335 NFTs in sale in the first few weeks of March 2022. The total sale of BAYC NFTs amounted to almost $95.48 million for the 335 NFTs.
Therefore, the average price of one BAYC NFT rounded up on an average estimate of $285,000. However, the buzz around BAYC NFTs gained momentum in recent times with the launch of ApeCoin on March 16, 2022. On its debut trading day, ApeCoin scaled unfathomable heights in the first five minutes itself.
Many people have been wondering about the question of “is ApeCoin a good investment” to find out its credibility. How reliable is ApeCoin? The founder of ApeCoin is Yuga Labs, the team behind BAYC NFT collections. ApeCoin or $APE has evolved as a favorable token for commerce, culture, and gaming to empower the decentralized community. The utility of ApeCoin can help in empowering many web3 development projects effortlessly.
You can answer the doubts regarding hype around ApeCoin with the implications for functionalities as a decentralized protocol layer in community-driven activities. For example, the popularity of ApeCoin in crypto revolves largely around improvements in the metaverse for event hosting and creation of digital products. The functionalities for serving as decentralized protocols can empower new innovations in the web3 landscape.
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Definition of ApeCoin
The foremost aspect you need to understand ApeCoin would point at how well you understand “What is the ApeCoin?” along with relevant answers. ApeCoin otherwise referred to as $APE or APE, is the native cryptocurrency in the Bored Ape Yacht Club or BAYC ecosystem. As of now, BAYC is the most renowned NFT collection on the Ethereum network. The ApeCoin follows the ERC-20 token standard and serves as a utility as well as governance token within the Bored Ape ecosystem. As a utility token, it helps in purchasing goods and services according to your requirements.
The answers to “Does ApeCoin have potential?” would obviously draw the focus towards the different functionalities of ApeCoin. It can work as a gate token for the ecosystem, guarding access to different exclusive highlights of the ecosystem. For example, ApeCoin could grant exclusive access to special events and games.
As of now, ApeCoin APE has distributed around 150,000,000 tokens among the BAYC NFT holders. The BAYC NFT holders showed the necessary proof of eligibility for claiming around 10,950 APE. Interestingly, holders can sell or buy ApeCoin without any restrictions on a decentralized exchange, serving as a digital trading post for different cryptocurrencies.
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Tokenomics of ApeCoin
The overview of answers regarding “is ApeCoin a good investment” would ultimately land up with an evaluation of ApeCoin tokenomics. One of the biggest highlights of ApeCoin points to how it achieved a massive market capitalization of around $2 billion. Considering the overall strength of ApeCoins dropped in the market, the average value of one $APE is around $13.37. Another important highlight in discussions about ApeCoin crypto would refer to the limitations on the total token supply to one billion. Interested investors must remember that the overall token supply of ApeCoin features certain distinct categories.
First of all, the airdrop distribution is applicable for NFT owners with a Bored Ape or Mutant Ape. In addition, NFTs paired with a Bored Ape Kennel Club NFT also qualify for the airdrop distribution. The second group of recipients of the ApeCoin crypto includes the DAO Treasury and relevant resources. You can discover that the cryptocurrency ApeCoin is also distributed to the DAO treasury alongside resources.
The DAO treasury and resources would get a total of 470 million tokens from the total ApeCoin supply. You must also note that the ApeCoin pool has unlocked around 117,500,000 tokens at the launch. Now, the collection releases around 7,343,750 tokens every month over the course of the next 48 months.
The next important highlight about ApeCoin APE would refer to the total supply of almost $1 billion. ApeCoin does not offer any facility for creating more tokens or capacity for burning tokens, thereby ensuring a constant supply in its tokenomics.
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Can You Trust ApeCoin?
ApeCoin is a new addition to the crypto ecosystem and draws many references to the use of non-fungible tokens. APE has been successful in distribution of around 150,000,000 tokens to the BAYC NFT owners in their airdrop mechanism. Bored Ape NFT owners can receive around 10,950 APE tokens, which is around 15% of the total marked ratio.
The allocation of ApeCoin crypto would depend considerably on the difference in the floor prices of NFT collections for enabling a fair ApeCoin launch for Bored Ape and Mutant Ape NFT owners. BAYC and MAYC NFT owners have a 90-day claim period. Subsequently, the unclaimed tokens would revert back to the Ecosystem Fund. An NFT collection tailored with specific airdrop and distribution mechanisms can obviously serve as a trustworthy alternative to other projects.
What exactly defines the level of trust in ApeCoin?
APE Foundation and DAO
The questions such as “Does ApeCoin have potential?” would draw references to the management behind ApeCoin. You must notice that the APE Foundation takes care of management of ApeCoin. Rather than serving as an administrative authority, the APE Foundation presents a solid ground for growth of ApeCoin DAO holders. The APE Foundation works on promoting decentralization and community-driven governance with the objective of encouraging decentralization over course of time. The APE Foundation takes care of various tasks such as,
- Project management
- Daily administration tasks
- Activities for supporting the ideas of ApeCoin DAO community
The APE Foundation basically focuses on ensuring the growth of the APE ecosystem through a fair and inclusive approach. One of the most notable highlights of the APE Foundation refers to the payment for expenses by leveraging the Ecosystem Fund. Interestingly, the answer to “is ApeCoin a good investment” would suggest how the Ecosystem Fund features operations and management by a multi-sig wallet. At the same time, the APE Foundation also offers a suitable environment for ApeCoin owners to drive engagement through different open and permissionless governance apparatuses.
ApeCoin DAO or Decentralized Autonomous Organization is an integral part of the Bored Ape ecosystem, particularly for ApeCoin APE crypto assets. The DAO provides a suitable option for ensuring decentralized governance while also supporting the growth of a globally interspersed community. All the ApeCoin owners can have the eligibility for joining the ApeCoin DAO.
The Decentralized Autonomous Organization would enable the members to take important decisions regarding the allocations with the Ecosystem Fund, projects, governance rules, and partnerships. In addition, the ApeCoin DAO also sets the ideal precedents for improvement with the APE Improvement Proposal Process.
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ApeCoin Protocol and Use Cases
The obvious highlight in a discussion on “What is the ApeCoin?” would draw emphasis toward the ApeCoin Protocol. You must notice that ApeCoin works in accordance with the ERC-20 token standards. The token serves the functions of a utility and governance token for use within the APE ecosystem.
As of now, the intended functionalities of the ApeCoin protocol revolve around empowering a decentralized community. The cryptocurrency ApeCoin is not the only side of the crypto you would notice here. As a matter of fact, you should also note that ApeCoin is the open-source protocol layer of the Bored Ape ecosystem. Therefore, ApeCoin protocol can address different objectives such as,
ApeCoin protocol enables access to different parts of the ecosystem, which you would have faced considerable difficulties in accessing. For example, the ApeCoin crypto can work as a gateway to exclusive services, games, events, and merchandise.
Governance is another significant highlight in the discussions around ApeCoin and its potential. ApeCoin serves as the governance token of the Bored Ape ecosystem, and ApeCoin owners have the privilege of joining ApeCoin DAO.
The next crucial advantage you can notice with ApeCoin protocol would refer to the facility of incentives. Who can receive incentives with ApeCoin? It is a favorable platform enabling third-party developers to join the ecosystem. Developers can receive incentives for integration of APE in their new games, projects, or other services.
Unifying the Spend
The obvious answers to “Does ApeCoin have potential?” would draw attention to the identity of ApeCoin as the utility token of the ecosystem. It serves as shared and open money, which you can employ without using any centralized intermediaries. Every member of the ecosystem can use ApeCoin, thereby signifying the unification of spend.
Uses of $APE Token
The ApeCoin APE cryptocurrency has been launched recently along with the ApeCoin DAO. It is a new governing body for all the Ape NFT holders. The basic objective of the ApeCoin DAO revolves around collecting community proposals on which different token holders can extend their votes. As of now, the $APE cryptocurrency is a suitable choice for the web3 economy.
The control of the community alongside the design of the token helps in supporting use cases of commerce, culture, and gaming. The uses of the $APE token might dig deeper into the evolving metaverse culture. How? ApeCoin can serve as a vital tool for facilitating metaverse purchases and sales alongside creating their identities and other experiences on the metaverse.
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The ApeCoin is an interesting example of introducing new forms of utility with NFT collections. No one would have ever imagined that the cryptocurrency ApeCoin would become an integral aspect of BAYC NFTs. The Bored Ape community is growing continuously at a favorable rate. As of now, it is important to learn about the ways in which ApeCoin can deliver value to the decentralized web.
It is important to have a clear understanding of how ApeCoin can play the roles of utility and governance in the Bored Ape ecosystem. The applications of ApeCoin have been rounded up on the possibilities for using them in the metaverse. However, only time can reveal what would actually happen with ApeCoin in crypto world. Start learning more about the world of NFTs and different NFT collections.
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*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!