If you are interested in cryptocurrencies, chances are you must have heard about ApeCoin, or APE. You might have also wondered, “What is ApeCoin?” Through this piece of information, get answers to everything related to it.
ApeCoin is a cryptocurrency that has been invented to support the development of a decentralized Web3. It was launched on March 17, 2022, and is known as the BAYC-affiliated cryptocurrency.
An ERC-20 governance as well as utility token, ApeCoin meets a number of functions in ApeCoin’s ecosystem.
The release of APE was followed by the news of Yuga Labs raising funds worth $450 million in venture capital funding.
ApeCoin token distribution
A total of only 1 billion $APE tokens will be there forever. Their allocation has been discussed in the points below:
- 62% of the tokens are reserved for the ApeCoin DAO community. Among these, 15% are meant for BAYC and MAYC owners. BAYC owners can claim 10,094 APE and MAYC owners can claim 2,042 APE. The remaining tokens are to be released as a part of the ecosystem fund of DAO.
- 16% of the tokens belong to Yuga Labs.
- 14% of the tokens are for “launch contributors,” who are behind making the project a reality.
- 8% of the tokens are meant for the founders of Yuga Labs and BAYC.
At the time of launch, over 30% of ApeCoins were unlocked. The remaining were set to unlock in the next 48 months and the duration will complete in 2026.
How does ApeCoin work?
The members of ApeCoin DAO vote like a community on matters that affect the ecosystem’s growth, such as how to allocate funds, how to apply rules, which partnerships will be valuable, and which projects to accept.
Decisions by the DAO are turned into action by the ApeCoin Foundation, the legal representative of the DAO, which also assists the ecosystem’s growth in multiple ways.
The Foundation has five members who are leaders in both cryptocurrency and technology. The board ensures that the vision of the community is followed in line with the development of the ecosystem. Owners of ApeCoin vote to decide the membership of the board on a yearly basis.
The APE ecosystem
Token owners and an extensive range of goods and services that utilize the cryptocurrency come under the APE ecosystem. One of the key members is Yuga Labs, which uses APE as their projects’ primary token.
BAYC is the ecosystem’s first project that has 10,000 rare digital avatars with colorful apes. Then there’s Mutant Ape Yacht Club and Bored Ape Kennel Club.
In April 2022, Yuga Labs began minting virtual land in Otherside, its metaverse project. Not only did the sale go viral, but it earned $320 million within minutes.
ApeCoin owners are a part of the DAO
Those who purchase ApeCoin can become members of the DAO and vote on proposals related to the future projects of APE. The cryptocurrency is managed by the DAO, and according to Yuga Labs, they have no ownership in the DAO.
The board members oversee proposals regarding ApeCoin DAO. Every member is on a six-month term, after which the DAO community members decide the future board members through voting.
The multiple uses of ApeCoin
With ApeCoin, owners can take part in the DAO’s governance other than accessing unique features such as merchandise, games, services, and events.
Several merchants accept ApeCoin since it is a widespread ERC-20 token. The coin is used for NFT rewards. Also, BAYC owners get free ApeCoin that can be instantly cashed.
In March 2022, Time Magazine announced that it will start accepting ApeCoin as payment for digital subscriptions.
Wiz Khalifa and Snoop Dogg have eight songs together that can be purchased by using ApeCoin only.
For third-party developers, ApeCoin has a key role in their ecosystem; hence, it is integrated in their services, projects, and games. For example, the P2E mobile game Benji Bananas, has adopted APE as an incentive to reward players.
ApeCoin has been incorporated into Otherside, as announced by Yuga Labs in March 2022.
Notable performances of ApeCoin
In March 2022, Miami’s property development firm, E11EVEN Residences, shared that it will accept APE for the purchase of condo units.
On April 29, 2022, a total of three proposals were opened to DAO members for the purpose of voting.
On April 30, 2022, OpenSea announced that it will begin accepting APE NFT purchases on its platform.
On August 2, 2022, Gucci took to Twitter to announce that the brand had begun accepting ApeCoin via BitPay.
On August 5, 2022, BitPay shared the news that it has started supporting ApeCoin and Euro Coin.
ApeCoin made it to the headlines when it introduced its own NFT marketplace in November 2022. In summer 2022, the DAO voted for Snag Solutions to create the marketplace.
The marketplace enables NFT investors to both purchase and sell tokens across the collections of Yuga Labs, which include Mutant Ape Yacht Club, Bored Ape Yacht Club, and Bored Ape Kennel Club.
On December 5, 2022, the introduction of staking grabbed eyeballs.
How to buy ApeCoin?
ApeCoin can be purchased on a crypto exchange by following the steps explained below:
Enter details like email, username, and a contact number on the sign-up page. Once the email is verified, create a strong password.
The “Know Your Customer or KYC process has to be completed at most of the regulatory domains. Enter your ID and the needed documents to create the account within a few minutes.
Deposit fiat and purchase ApeCoin.
Is ApeCoin a good investment?
Since ApeCoin belongs to one of the top NFT projects, i.e., BAYC, it has always had the favor of many. APE has a chance of being adopted by gaming, arts, entertainment, and culture experts.
It is worth buying ApeCoin because it can be used for payments, utilize unique features of the APE ecosystem, and earn NFT rewards.
However, the coin’s volatile side can’t be ignored either. Also, APE is speculative in nature. No doubt its team is powerful and has great potential, but the coin needs to have more real-life utility.
If APE has success in creating real use cases for investors, their value will definitely boost, and they will even become appreciable. Though there’s no denying the fact that Yuga Labs’s execution will decide the fate of the coin.
ApeCoin has gotten immense attention ever since it has been launched. The creators of the token have utilized many incentives for the promotion of its utility.
Its use cases range from decentralized payments to sales of land on the metaverse. With the growth and expansion of the APE ecosystem, ApeCoin will have more value. Since the beginning of the new year, APE is doing well, and its price has increased. If it maintains the same pace, long-term investment will yield solid profits.