- This week while billions of dollars worth of tokens were distributed among the Bored Ape Yacht Club’s designers, backers, and owners, Andreessen Horowitz, a venture capital firm also faced windfall.
- The debut of ApeCoin is one of the most well-known “airdrops,” in which cryptocurrency projects give away free digital tokens to employees, collectors, and investors, resulting in the creation of new billionaires overnight.
- Before the public launch of ApeCoin, Yuga and its ApeCoin partners approved the distribution of the tokens, distributing crypto worth billions to a few insiders, as well as an environmental charity, Bored Ape holders, and the treasury of the organization.
When billions of dollars worth of tokens were distributed to the designers, backers, and owners of the Bored Ape Yacht Club digital collectibles, Andreessen Horowitz, a venture capital company was among the investors who experienced a windfall this week.
When a consortium, including Bored Ape founder Yuga Labs as the largest single shareholder, unveiled “ApeCoin” on Thursday, crypto traders rushed to take advantage of the situation. According to CoinMarketCap.com, more than $9 billion worth of ApeCoin was traded in the first 24 hours of trading.
An organization that Yuga helped to start, along with a small number of backers and advisers, minted a billion ApeCoin on the Ethereum network.
After millions were given away to Bored Ape holders on Thursday, the tokens became extremely valuable, and they began trading on major crypto exchanges such as Coinbase, FTX, and Binance, where any other investor could buy them.
ApeCoin’s launch is one of the most well-known “airdrops,” in which cryptocurrency projects effectively give away free digital tokens to collectors, employees, and investors, creating new billionaires overnight.
Yuga and its ApeCoin partners approved the allotment of the tokens before public trading began, distributing crypto worth billions to a few insiders, as well as Bored Ape holders, an environmental charity, and the organization’s treasury. According to a Yuga representative, token distribution was decided by a “broad number of contributors and industry professionals they contacted.”
A further 150 million tokens, worth more than $2.2 billion, were transferred to Yuga Labs, while 470 million will be held by the ApeCoin organization and 150 million will be collected by Bored Ape NFT holders.
Owners of a cartoon monkey that originally sold for about $250 and now sells for upwards of $250,000 on marketplaces like OpenSea received a payout of 10,094 ApeCoin for each NFT they own from the main collection, handing out tens of thousands of dollars to owners of a cartoon monkey that originally sold for about $250 and now sells for upwards of $250,000 on marketplaces like OpenSea.
On Thursday, some Bored Ape holders were able to collect hundreds of thousands of dollars in ApeCoin, with one large collector claiming tokens worth more than $20 million on Friday.
ApeCoin’s price has recovered to around $15 by 24 hours after its launch, after tumultuous early trading that saw it swing from $39 to $7. The Yuga creators’ stake would be worth more than $1.2 billion at that price, while ApeCoin’s launch partners’ stake is worth $2.1 billion. Trading ApeCoin is now prohibited for the founders and launch partners, with lock-ups unwinding in batches over the following 36 months. Currently, only 28% of the tokens are available for trading.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/03/19/venture-capital-firm-andreessen-horowitz-also-receives-windfall-from-bored-ape-crypto-coin/