The Bored Ape Yacht Club is one of the most popular NFT collections. Here each NFT represents a cartoon ape with its own color scheme, facial expressions, and clothing. Apparently have perplexed a lot as to how these NFTs can command such high prices.
In the last seven days, 335 NFTs of the Bored Ape Yacht Club have been sold. It is sold for $95.48 million in total. One NFT from the BAYC cost an average of $285,000.
There has been a new buzzword in the crypto market lately, that is famed to BAYC and cryptocurrency called ApeCoin, which was launched on March 16, 2022. The coin had reached heights for 5 minutes into its debut trading day.
The reason is Yuga Labs, the originator of BAYC has launched ApeCoin ($APE). According to the firm, ApeCoin will be a “token for culture, gaming, and commerce that will be utilized to empower a decentralized community at the forefront of web3 development.
The coin will act as a decentralized protocol layer for community-led activities aimed at advancing culture in the metaverse to host events, create digital products and bring anything one can dream of.
In this article, let’s take a closer look at what ApeCoin is!
What is ApeCoin?
ApeCoin, or more generally known as APE, is the native cryptocurrency of the Bored Ape Yacht Club(BAYC) ecosystem, which is the most popular NFT collection on Ethereum Blockchain. It is an ERC-20 utility and governance token that is used inside the APE ecosystem.
It is also the ecosystem’s utility token, which can be used to buy goods and services.
The Coin is likely to serve as a gate token, granting access to select aspects of the ecosystem, such as special games and events.
APE has airdropped the total of 150,000,000 tokens to BAYC NFT owners. The users who own the APE NFTs are eligible to claim 10,950 APE.
This is a cryptocurrency that you can buy and sell freely on a decentralized exchange, which is a type of digital trading post for cryptocurrencies.
ApeCoin Tokenomics
After just one day of trading, ApeCoin had a market capitalization of almost $2 billion; one APE is currently worth about $13.37.
The total supply of tokens is limited to one billion. The overall supply is divided into the following categories.
The airdrop distribution is dependent on whether NFT owners hold a Bored Ape or a Mutant Ape and whether the NFT is paired with a Bored Ape Kennel Club NFT.
Holders of BAYC-related NFTs received 150 million tokens from the ecosystem fund as an airdrop.
Which can be broken as: Bored Ape NFT = 10094 tokens, Mutant ape = 2042 tokens, Bored Ape + Kennel Club = 10950 tokens, Mutant Ape + Kennel Club = 2898 tokens.
DAO treasury and resources will receive 470 million tokens from the same pool, with 117,500,000 unlocked upon launch and 7,343,750 released monthly for the next 48 months.
Moreover, the supply is a total of 1Bn, through its contract interface, there is no way to create more tokens, and there is no capacity for burning the supply will remain constant.
The Ape Foundation and DAO
ApeCoin is managed by the APE Foundation. It is not an administrator, but rather the foundation upon which ApeCoin DAO holders might grow.
The Foundation promotes decentralized and community-led governance, with the goal of becoming even more decentralized over time.
It is responsible for day-to-day administration, bookkeeping, project management, and other duties that ensure the ApeCoin DAO community’s ideas get the support they need to become a reality.
The APE Foundation’s mission is to ensure that the APE ecosystem grows and develops in a fair and inclusive manner.
It pays its expenses as ordered by the ApeCoin DAO using the Ecosystem Fund, which is held by a multisig wallet, and provides an environment for ApeCoin holders to engage through open and permissionless governance processes.
ApeCoin DAO(Decentralized Autonomous Organization) exists because decentralized governance is essential for establishing and sustaining a globally distributed community.
All ApeCoin holders are eligible to join the ApeCoin DAO. ApeCoin DAO members will be able to make decisions about Ecosystem Fund allocations, governance rules, projects, partnerships, and more through the APE Improvement Proposal Process.
The Board
At the request of ApeCoin DAO members, a special council on the APE Foundation “the Board” is established.The Board’s mission is to administrate DAO proposals and serve the community’s vision.
Some of the Initial DAO members are:
- Alexis Ohanian: Co-founder of Reddit; General Partner & Founder of Seven Seven Six
- Amy Wu: Head of Ventures & Gaming at FTX
- Maaria Bajwa: Principal at Sound Ventures
- Yat Siu: Co-founder & Chairman of Animoca Brands
- Dean Steinbeck: President & General Counsel at Horizen Labs
ApeCoin Protocol
As mentioned earlier ApeCoin is an ERC-20 governance and utility token that is utilized within the APE ecosystem to empower a decentralized community building at the cutting edge of web3.
As the ecosystem’s open-source protocol layer, ApeCoin serves various objectives as follows;
- Governance: ApeCoin is the ecosystem’s governance token, and holders of ApeCoin can join the ApeCoin DAO.
- Unification of Spend: ApeCoin is the ecosystem’s utility token, providing a shared and open money that can be employed without the use of centralized intermediaries for all of the ecosystem’s members.
- Access: ApeCoin grants access to aspects of the ecosystem that would otherwise be inaccessible, such as unique games, merchandise, events, and services.
- Incentivization: ApeCoin is a platform that allows third-party developers to join the ecosystem by integrating APE into their services, games, and other projects.
Why $APE Token is Used for?
ApeCoin which was launched at ApeCoin DAO is a new governing body in which all APE holders are members. Its purpose is to collect community proposals, which token holders may subsequently vote on.
Aforementioned, apecoin is for the web3 economy. It is a community-controlled and built-on token designed to support culture, gaming, and commerce. This will be ingrained in metaverse culture, with the token being able to be used for metaverse purchases, sales, and the creation of one’s own living.
How to Buy ApeCoin(APE)?
Some of the largest exchanges, such as Binance, Coinbase, FTX, Huobi, KuCoin, Bybit, Kraken, and others, have already traded and listed APE.
It just takes a few minutes to open a cryptocurrency exchange account if you don’t already have one.
- Create an online account.
Download any of the above-mentioned apps and start the sign-up process to create an account.
While it’s generally safe to deposit cryptocurrency on large exchanges, it’s preferable to keep the majority of your assets in a hardware wallet. Hardware wallets store cryptocurrency offline, providing protection against online hacking.
Enter the amount you want to buy by adding a payment method using your bank account.
What is ApeCoin DAO?
The ApeCoin DAO, a decentralized organization in which each token holder can vote on the governance and use of the ApeCoin Ecosystem Fund, owns and operates Apecoin. Holding ApeCoin is the only requirement for membership in the ApeCoin DAO.
The Ape Foundation is the supporter of APE DAO and administers the community’s decisions.
DAO treasury and resources will receive 470 million tokens from the same pool, with 117,500,000 unlocked upon launch and 7,343,750 released monthly for the next 48 months.
The Future of APE DAO.
- ApeCoin DAO will gradually evolve the proposal and vote procedures into a full, on-chain platform, as selected by the community
- This can be accomplished by the DAO taking the following steps:
- To replace the company’s assigned administrative, project management, and moderation staff, DAO members will be hired
- Establishing a steering committee for the community
- Putting on-chain voting into practise
- Annually, members of the DAO’s Board of Directors are elected through a vote.
Is Apecoin a Good Investment?
The introduction of ApeCoin has sparked a lot of interest in this area. ApeCoin has increased by 17.42 percent. With a live market cap of $3,750,250,226 USD, CoinMarketCap now ranks #35.
Cryptocurrency is a highly volatile and unstable market. As APE is at a very early stage in the world of crypto, it is hard to speculate on ApeCoin’s future market.
Due to the recent euphoria surrounding the crypto industry, the coin may experience a short-term increase but the fact that investment could be risky can’t be ignored.
Invest only if you are likely to undertake such risks and, if required, bear any and all losses.
Source: https://coinpedia.org/beginners-guide/what-is-apecoin/