What is ApeCoin (APE) and Should You Consider Investing in it?
19 October 2022
NFTs. Metaverse. Web 3.0 – these words encompass the next generation of the internet built to be more functional, interactive, open, and decentralised. As the world increasingly moves online, newer technologies like blockchain and digital assets offer a way to re-engineer how we interact with the internet, with each other, and the world around us. And, ApeCoin is one such decentralised crypto.
Here’s an interesting read for you on the most important aspects of ApeCoin, the cryptocurrency of Bored Ape Yacht Club (BAYC) – one of the biggest NFT and metaverse projects.
But First, Let’s Understand Metaverse and NFT
A metaverse is a shared, online space in which users can explore and interact with each other. Metaverse-like business and experiences have been taking over the entertainment industry, and Fortnite – the popular game – has been privately valued at $31.5 billion. Fortnite is just one example of how businesses are using metaverses to engage with customers and create new sales opportunities. As more companies start to explore the possibilities of the metaverse, we are likely to see even more innovative uses for this technology.
Non-Fungible Tokens (NFTs) are digital assets on the blockchain. Simply put, non-fungible means one of a kind, and blockchain technology helps verify this uniqueness in the digital realm. Some of the most popular NFTs are digital art, collectables, and gaming assets. The popularity of NFTs has led to a boom in the metaverse, as businesses are using NFTs to create new experiences and engage with customers in new ways.
Going back to ApeCoin, because it is stored on the blockchain, it is immutable and cannot be duplicated, and that makes it akin to a collectible in itself. As we will explore, holding these NFTs can also bring certain benefits.
Crypto Terminologies You Must Know to Understand ApeCoin
DAO: A decentralised autonomous organisation (DAO) is a decentralised organisation with no central authority or hierarchical structure that is run by code rather than by people or organisations.
Governance token: A governance token is a crypto asset that gives holders voting rights in a DAO.
Utility token: A utility token is a crypto asset that gives holders access to a product or service.
With that, let’s take a deep dive into understanding and learning about ApeCoin.
ApeCoin (APE) is an ERC-20 token that was created on the Ethereum blockchain. It’s a governance and utility token, holders of which gain access to the ApeCoin DAO.
In addition, ApeCoin Dao is the official DAO for the biggest NFT project ever – the BAYC. While the founders of the ApeCoin DAO and BAYC are different, APE also serves as the governance token for BAYC.
Ownership of BAYC has become an elite signifier, with celebrities such as Neymar and Madonna owning pieces. Ownership of a BAYC NFT can provide access to exclusive events and premium spaces. Currently, the floor price of a BAYC – meaning the lowest price you can get one at – is 98 ETH(approx Rs 1.05 crore).
In March 2022, holders of a BAYC were airdropped – given free digital assets – ApeCoins. Meaning they were provided with free money purely for holding the BAYC NFT.
To sum up, ApeCoin was primarily built as a token to reward BAYC owners, but anyone, regardless of whether they own BAYC or not, can purchase it. The purpose and usage of APE extend beyond BAYC, and holders have a stake in the development of the Ape foundation and can alter the direction of its future pathway.
What is ApeCoin Token?
APE is the native currency of the ApeCoin DAO & the Bored Ape Yacht Club. APE tokens are used to participate in the ApeCoin governance system.
APE by the numbers (as of July 16, 2022):
ApeCoin price: $4.53
Ape Coin Price in INR: Rs 377.800
Market Cap Rank: #43
Market Cap: $1,357,359,582
24 Hour Trading Vol: $214,104,706
Circulating Supply: 299,531,250
Total Supply: 1,000,000,000
Who Created ApeCoin?
The ApeCoin DAO created ApeCoin. Any holders of APE can join this DAO. The greater the APE you hold, the bigger your decision-making power.
In addition, Yuga labs – the founder of BAYC are involved with the funding and leadership of the ApeCoin DAO.
To best serve the ApeCoin DAO, a board of advisors is set up to represent the organisation. The DAO votes for the board, and the board is responsible for implementing and carrying out DAO proposals.
The board is comprised of:
Alexis Ohanian (Reddit – co-founder),
Amy Wu (FTX – head of ventures and gaming),
Dean Steinbeck (Horizen Labs – President & general counsel),
Maaria Bajwa (Sound Ventures – Principal),
Yat Siu (Animoca Brands – co-founder & chairman)
How does APE Work and What are its Uses?
Primarily, APE functions as the governance token for the ApeCoin DAO. Holders cast votes and collectively make funding decisions, partnerships with brands, DAO rules and more.
The Ape Coin crypto can also be used to make payments. As APE is a prominent token in the cryptocurrency and metaverse space, several third-party developers incorporate APE into their products. For example, the coin is used as a reward in the popular play-to-earn (P2E) mobile game ‘Benji Bananas’.
What is the APE Ecosystem?
The holders of APE and any products and services using APE make up the APE ecosystem.
One of the biggest community holders is Yuga Labs(holding around 8% of all APE tokens). All their NFTS make up a large portion of the APE ecosystem:
Mutant Ape Yacht Club
Bored Ape Kennel Club
How to Buy ApeCoin?
ApeCoin can be bought and sold on a variety of ApeCoin crypto exchanges. After creating an account with an exchange and depositing INR to the account, you can purchase APE.
Once purchased, your APE tokens can be stored in the exchange itself or be taken out and stored in a cryptocurrency wallet.
ApeCoin Price Prediction
APE has been coming closer to testing the resistance barrier of $5.71. Analysts say if this barrier is quickly overcome, then the chances of a bull running close to $7 are highly possible.
On the flip side, while things do not seem bearing at this moment if the daily candle closes below the $4.20 support level, the coin could likely fall back directly to its foothold of $3.73.
Risk Associated with APE
The considerable risk with APE is that, unlike tokens like Avalanche (AVAX) or Algorand (ALGO), it’s not tied to a utility of its own. Instead, it relies on the metaverse and BAYC as the primary drivers of ApeCoin price. If either of these narratives falters, then so will ApeCoin. Additionally, the Ape NFT coin space is very volatile, even more so than the crypto space, so you need to be able to stomach higher levels of risk to invest in APE. Also Read: How Does A Crypto Trading Bot Work?
The metaverse will play a growing factor in digital products in the future. The fact that ApeCoin (APE) is directly tied to the biggest, most profitable, and culturally influential NFT project ever means it has been adopted as the metaverse token. Given BAYC’s pole position in the NFT world, artists, sports persons, and other cultural icons are attracted towards this project, giving it a solid narrative to drive forth with.
A purchase of APE is not just a simple investment purchase; it also provides access to opportunities in the Web 3.0 and metaverse space through the ApeCoin DAO, access to exclusive events, and voting power in the DAO. If you are interested in this space, it’s worth the effort putting more time into researching this potentially profitable project.
FAQs on ApeCoin
Q1. Why would I buy a BAYC? Or any NFT?
Ans: NFTs are digital assets and collectables that can be used to represent art, property, audio, video, and more in the digital world. The Ape NFT coin can be bought and stored securely, and instantly without a middleman. Some NFTs like BAYC give you access to exclusive events, and their value can be appreciated just like physical works of art. For example, BAYC were first ‘sold’ at a price of 0.08 ETH, which is approximately ₹9500; the average sale price of a BAYC today is around 112 ETH, which amounts to nearly ₹1.35 crore!
Q2. Should you invest in APE?
Ans: For ApeCoin to be a fruitful long-term investment, the metaverse trend has to solidify and accelerate. Over the shorter term, there has been impressive growth in the ApeCoin price despite the generally weak markets, exhibiting 60% price appreciation over the last thirty days.
If you wish to invest in ApeCoin, keep in mind that NFTs and NFT-related coins are even more volatile than most cryptocurrencies, so it’s best not to make them a large portion of your portfolio. On the flip side, this volatility can mean even a small investment has an outsized payoff.
Q3. How exactly are ApeCoin and BAYC related?
Ans: There are three primary organisations connecting ApeCoin and BAYC:
Yuga Labs – the founders of BAYC ApeCoin DAO – all holders who make collective decisions regarding ApeCoin Ape Foundation – the legal representative of the ApeCoin DAO
Q4. What can you buy with APE?
Ans: Since APE is an ERC-20 token which has become increasingly accepted by merchants, you can purchase any products from businesses that accept ERC-20 coins.
Q5. What can you do in the Metaverse?
Ans:With a world that’s increasingly living online, there are no limits to what’s possible in the metaverse. While the metaverse is not a fully-fledged environment right now, certain elements of the metaverse already exist. Virtual social spaces allow you to spend time with your friends or even carry out better work meetings. You can play video games, buy and sell virtual goods, attend classes, and create content.
The metaverse of the future will feel like a combination of what digital social technologies can do today. Instead of just texting people, you’ll feel like you’re sitting beside them. Working remotely won’t feel remote at all; business meetings could take place in a virtual space, and you could experience retail-like shopping experiences sitting in your bedroom! This process won’t happen overnight, but the seeds have been sown, starting with the crypto world.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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