ApeCoin is a newly launched native Cryptocurrency of the Ape ecosystem, which is used as the governance and utility token of Bored Ape Yacht Club (BAYC).
Let us know more about ApeCoin and if it is worth buying?
What is ApeCoin?
Launched over all the major exchanges at once on the 18th of March, ApeCoin made a noticeable entrance in the world of Cryptocurrency.
Even though it was launched in all the main exchanges, ApeCoin is officially a token of Bored Ape Yacht Club which acts as a reward for the holders of Bored Ape collections.
With 1 billion coins in total, and currently, only 28% of it is in the market. It is said that they will vest slowly over the years of all the coins/tokens that there are.
ApeCoin wasn’t created by the developers of Bored Ape Yacht Club i.e., Yuga labs but by ApeCoin DAO.
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What is ApeCoin DAO?
It is a decentralized autonomous organization, which according to their site is a new type of governance structure that is critical for the success of the Ape ecosystem. To put it simply, important for managing and further building of globally spread Ape community or ecosystem.
DAO oversees the APE improvement proposals i.e., decisions regarding the fund allocations, rules, projects, partnerships etc of the Ape Ecosystem will be done by a voting system amongst the members of ApeCoin DAO.
How to become a member of ApeCoin DAO?
Now, this might sound tempting to all the power cravers out there, that they can be the ones to vote for the future of the Ape ecosystem, however, I have some bad and good news for you all!
What bad news you might be wondering about?
It is a fact that only ApeCoin DAO members can vote. Now you might wonder how to become that?
To become an ApeCoin DAO member, you will have to be an ApeCoin holder.
There are some benefits to being an ApeCoin holder as well and that’s the good news. If you are or were an ApeCoin holder, then you might have automatically got 10,000 coins for free.
Reading this you might be wondering what’s the distribution of ApeCoin, let me help you out in that so that you don’t have to go around searching for it somewhere else.
Distribution of ApeCoin Tokens
As we know that the total supply of ApeCoin is permanently fixed at 1 billion tokens, which means there won’t be any minting Moreover, according to the contract they cannot burn any tokens as well. this means that there will be no increase or decrease in the supply of ApeCoin.
And as per the standard practice, a part of all the tokens will be for the contributors of the project which are initially locked, however, will be unlocked slowly in over 48 months.
It is said that ApeCoin will be distributed amongst four main groups which are as follow,
- Bored Ape Yacht Club ecosystem funds – 62%: In this over 1.5 billion tokens are for BAYC and MAYC which were unlocked at the launch and 4.7 billion tokens are for DAO treasury and recourses from which around 1.2 billion tokens were unlocked now while the rest will be unlocked slowly over 48 months as 7 million per month.
- Yuga Labs and Charity – 16%: Of these 1.5 billion tokens are for Yuga labs and 10 million tokens for the Jane Goodall Legacy Foundation.
- Launch contributors – 14%: The people and companies that have helped ApeCoin to become a reality got over 1.4 billion tokens. The lock-up schedule is available on their site.
- Bored Apes Yacht Club founders – 8%: People who helped to put together ApeCoin, the founders of Yuga Labs and BAYC have got 80 million tokens
Use of ApeCoin: Utility
Seeing this distribution, you might be wondering what the actual use of ApeCoin is, and honestly, there is no utility of this coin, for now.
There is nothing one can do with it, apart from buying and selling from each other which is also the reason why we are seeing a lot of fluctuation in the market for it.
Currently, there are few plans and proposals ApeCoin is currently working on or planning to work on. So, we can say that there are a lot of things that are supposed to be happening in the future but that is just all speculation for now.
There are few crypto gamers and game developers who have expressed their desire to work with or on something that integrates ApeCoin.
To put it upfront, it is practically a meme coin.
So, coming to the big question now, is ApeCoin Worth buying?
When you are planning to invest, you look for what’s happening right now and what is the prospect for it but apart from this you also must look at the market cap and the trading volume of your desired investment.
For ApeCoin the market cap today is on the 30th of April is around 6.7 billion dollars with its trading volume at 6.5 billion dollars. This made ApeCoin come under the top 30 coins of all time.
However, I will pass on this myself and would suggest the same to my readers here as well. The reason behind me saying this is,
- It’s too new: it was just a month ago and predicting anything right now is very difficult and quite risky.
- Evaluation is way too high: For a coin that just launched a month ago, this market cap of 6.7 billion seems too high and a bit fishy to me. I feel most of it is just because it’s the hype of novelty and will be gone in a while.
- Prove its worth: I feel like there is a lot to still prove for this coin or token right now and I will probably wait for a little and grab a chance to study the market for a while first before investing my money into it.
I would prefer sitting back for a little while before I pass on my judgment on this but for now, I would not suggest buying ApeCoin.
Please understand that I am no financial adviser and just sharing my views on it and would suggest you do the proper research yourself before making any decision.
Q1. Who built ApeCoin?
Ans: ApeCoin was created by ApeCoin DAO.
Q2. When was ApeCoin Launched?
Ans: It was launched on the 18th of March 2022.
Q3. What is the cost of an ApeCoin?
Ans: Today on the 5th of May, 2022, one ApeCoin is priced at around 16.5 USD.