What is Ape? Should You Invest in ApeCoin in 2024?

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ApeCoin (APE) is the native cryptocurrency token for the Bored Ape and Mutant Ape ecosystems, released in March 2022. Technically, ApeCoin is an ERC-20 token operating on the Ethereum network. Behind ApeCoin is a company called Yuga Labs, known as one of the significant players in the Web3 and NFT markets. So, what exactly is ApeCoin, and what purpose does it serve? Let’s delve into how ApeCoin operates.

What is ApeCoin?

ApeCoin is the culmination of community efforts within the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) over an extended period. The aim of ApeCoin is to reflect and drive the future of culture, art, gaming, and entertainment through the application of blockchain technology and community-led initiatives.

ApeCoin isn’t just a cryptocurrency but also a part of the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) communities. This marks a significant step in building the metaverse ecosystem, where users can engage in virtual activities such as trading digital art, participating in events, and interacting with each other through blockchain-based activities.

Detailed Information about APE Token

Key Metrics APE Token

Token Name: ApeCoin Token
Ticker: APE
Blockchain: Ethereum
Token Standard: ERC-20
Contract: 0x4d224452801aced8b2f0aebe155379bb5d594381
Token Type: Utility
Total Supply: 1,000,000,000 APE
Circulating Supply: Updating…

APE Token Allocation

Ecosystem Fund: 62%
BAYC & MAYC: 15% – 150,000,000 APE
DAO treasury & resources: 47% – 470,000,000 APE
Yuga Labs + Charity: 16%
- Yuga Labs: 150,000,000 APE
- Jane Goodall Legacy Foundation: 10,000,000 APE
Launch Contributors: 14% – 140,000,000 APE
BAYC Founder: 8%- 80,000,000 APE

How to Buy and Sell APE Coin?

Currently, investors can trade APE tokens on:

CEX Exchanges: Binance, Coinbase, HTX, OKX,…
DEX Exchanges: Uniswap, SushiSwap,…

Advantages and Disadvantages of ApeCoin

Advantages

Strong Support: Yuga Labs secured a $4 billion valuation after a large investment round from leading companies, indicating substantial support and resources for APE to achieve its goals.
Decentralized Governance: APE is managed in the true spirit of cryptocurrency, where project development and direction are determined by a community of passionate investors eager to see the project succeed.
Diverse Utility: APE offers a range of useful utilities within the Ape ecosystem and metaverse, while also beginning to integrate with some real-world brands.
NFT Integration: ApeCoin’s origins within the Yuga Labs ecosystem give it a unique position in the evolving NFT and metaverse markets, opening up opportunities for development and diversification.

Disadvantages

Locked Supply: With less than 40% of APE tokens currently in circulation, ApeCoin aims to unlock tokens in the future over many years.
Dependency on Ecosystem: While technically a separate entity, ApeCoin’s entire value is tied to the Yuga Labs ecosystem. Any challenges Yuga Labs faces will significantly impact ApeCoin.

What is ApeCoin Used For?

Designed similarly to any other Web3 token, ApeCoin can be used for payments. Most merchants accept ApeCoin technically as it’s a popular ERC-20 token. It has also been used as rewards for NFTs, and BAYC holders receive free APE that they can cash out immediately.

Third-party developers use ApeCoin to play a role in the ecosystem and integrate the token into their services, games, and various projects.

For example, in Animoca Brands’ Benji Bananas, a play-to-earn (P2E) mobile game, the coin is used as an incentive for players. They can earn special tokens while playing and exchange these tokens for ApeCoin.

With ApeCoin set to integrate with the upcoming Otherside metaverse, it could become a highly demanded metaverse currency this year. This would turn ApeCoin into a transaction token on metaverse markets. If the metaverse incorporates play-to-earn elements, it could also be used to reward players.

Should You Invest in Ape Coin in 2024?

The issuance of ApeCoin by a dynamic online community like the Bored Ape Yacht Club has attracted many participants from the outset. Those passionate about art, culture, gaming, and entertainment are more likely to adopt cryptocurrency. Selling land on the Metaverse will also boost this currency.

There are several reasons to buy ApeCoin, such as using APE as a payment option, NFT rewards, and accessing exclusive features within the APE ecosystem, giving buyers reasons to purchase it. Despite all these factors, the nature of this currency is tied to the volatility associated with NFTs, something to be cautious about.

Ape DAO

So, beyond being a token, what is Ape? ApeCoin owners are granted governance rights, meaning as an owner, you have voting power over projects, partnerships, applications, and various aspects of the ecosystem. However, besides participating in governance, ApeCoin is also designed to provide utility in transactions and payments within Web3 applications.

According to the official APE website, the purpose of ApeCoin (APE) is to enhance decentralization and fairness within the APE ecosystem. Indeed, ApeCoin (APE) also enables owners to have comprehensive control, operation, and management of the APE community. In summary, ApeCoin (APE) has three main objectives:

Governance: ApeCoin provides the opportunity to participate in the ApeCoin DAO, allowing owners to engage in governance and make decisions about ecosystem activities.
Unified Spending: ApeCoin is seen as an open currency, enabling transactions and payments without the intervention of any centralized intermediaries, promoting liquidity and utility within the ecosystem.
Access Rights: ApeCoin provides exclusive access to events, goods, services, and games not available to non-ApeCoin holders, creating an advantage for owners.

Development Team

The ApeCoin development team is supported by members of the ApeCoin DAO Council, a special organization created to improve the APE ecosystem. Initial members of the ApeCoin DAO Council will hold their roles for six months until their terms expire, and new members will be elected annually according to APE’s policy. Below are some prominent members of the ApeCoin DAO Council:

Alexis Ohanian: One of the co-founders of Reddit and a partner at Seven Seven Six, Alexis Ohanian has supported ApeCoin and played a significant role in its development and promotion.
Amy Wu: Amy Wu is the Director of Gaming and Investments at FTX and is also an important member of the ApeCoin DAO Council.
Maaria Bajwa: Maaria Bajwa, an executive at Sound Ventures, is also a notable member of the ApeCoin DAO Council, playing a significant role in shaping APE’s strategy and development.
Yat Siu: Yat Siu, one of the co-founders and CEO of Anomica Brands, is also one of the key members of the ApeCoin DAO Council.
Dean Steinbeck: Dean Steinbeck, a general advisor and CEO of Horizon Labs, plays a significant role in shaping APE’s strategy and development.

APE Ecosystem

The APE ecosystem consists of the ApeCoin community and products and services that utilize APE. NFT collections associated with this ecosystem include:

Bored Ape Yacht Club (BAYC): This is the first NFT collection in the APE ecosystem, released in April 2021 on the Ethereum blockchain. The collection includes 10,000 unique apes, each with different visual characteristics and personalities.
Mutant Ape Yacht Club (MAYC): This is a group of 20,000 apes that have undergone mutations since the first BAYC apes were created. Mutant Ape also serves the purpose of welcoming newcomers to the APE community.

What is The Bored Ape Yacht Club?

The Bored Ape Yacht Club (BAYC), also known as BAYC, is the largest NFT by market capitalization as of 2022.

The Bored Ape Yacht Club (BAYC) collection consists of 10,000 unique NFTs, created from over 172 traits defining the rarity of each ape. Precious traits like laser eyes, blue beams, solid gold fur, and the “Bored Unshaven Pizza” mouth have created unique value for each NFT. As of March 2022, the trading volume of BAYC on the OpenSea marketplace has surpassed 466,000 ETH (approximately $1.4 billion).

In addition to being used as avatars on social media, BAYC also provides special benefits to its members. Each NFT represents membership in the Bored Ape Yacht Club, providing access to exclusive utilities such as “THE BATHROOM” and additional benefits as the BAYC project progresses.

The Bored Ape project was developed by four co-founders with the pseudonyms Gargamel, Gordon Goner, Emperor Tomato Ketchup, and No Sass. The collection exists on the Ethereum blockchain as ERC-721 tokens and is stored on the IPFS decentralized storage system.

Why are BAYC NFTs Valuable?

The Bored Ape Yacht Club (BAYC) collection provides exclusive access to the Yacht Club and other utilities. BAYC owners also have access to additional NFTs, including the Bored Ape Kennel Club and ApeCoin cryptocurrency airdrops. This is equivalent to continually registering for new NFTs and assets.

An equally important part is the community it attracts. Bored Ape Yacht Club (BAYC) owners have actively shared their NFTs as avatars on social media.

Yehudah Petscher, a strategist at CryptoSlam, an NFT data aggregator, shared with Forkast that BAYC can be seen as unique because of the popularity it attracts. “This is what makes BAYC powerful,” Petscher said. “They have captured moments when NFTs started to become popular, and owning a part of those moments is significant.”

The reason for the value of these NFTs is that they are seen as symbols of high ownership status due to the high cost of ownership. With the rise of digitalization in the context of the global pandemic, NFTs have become symbols of socio-economic status.

Petscher also believes that the appeal of this collection can help expand the brand of some of the world’s most famous athletes and artists. “Some professions require someone to fit in, so what better way to do that than to own the world’s most famous NFT,” he said. “BAYC is great, and everyone wants that great thing.”

Benefits for NFT BAYC Holders

In addition to owning unique digital artworks, holders of Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFTs also enjoy the following benefits:

ApeCoin Airdrop: ApeCoin will be distributed as a special airdrop exclusively for BAYC and MAYC NFT holders, along with other distribution rounds for other entities.
Bored Ape Yacht Club (BAYC) Collection: BAYC is an NFT collection inspired by CryptoPunks, consisting of 10,000 unique artistic works depicting unique apes. Each ape in the collection has its own characteristics, location, and environment, creating uniqueness and value for the project.
Mutant Ape Yacht Club (MAYC) Collection: Yuga Labs has developed Mutant Ape Yacht Club (MAYC) as a further development of BAYC, with a total of 20,000 NFT artworks. As a thank you gift to BAYC holders, the MAYC NFT project is also seen as a new way to attract more NFT collectors.
ApeCoin Allocation: 15% of the total ApeCoin, which is 150 million tokens, will be distributed as an airdrop to NFT owners as an exclusive reward. The specific allocation is as follows:

- Holders of ‘Bored Ape’ NFTs: 10,094 tokens
- Holders of ‘Bored Ape’ & ‘Kennel Club’ NFTs: 10,950 tokens
- Holders of ‘Mutant Ape’ & ‘Kennel Club’ NFTs: 2,898 tokens
- Holders of ‘Mutant Ape’ NFTs: 2,042 tokens

Collaboration with A Bathing Ape Fashion Brand

On September 25, 2023, Yuga Labs, the leading web3 company and home to Bored Ape Yacht Club (BAYC), CryptoPunks, Meebits, and 10KTF, today announced a collaboration with the iconic streetwear brand A BATHING APE (BAPE).

The Bored Ape Yacht Club is partnering with streetwear company Bape for a new collection, Yuga Labs announced. Founded in 1993 by Nigo (Tomoaki Nagao) in Ura-Harajuku, Bape is a renowned Japanese fashion brand. The company operates 19 stores worldwide, providing streetwear and lifestyle for men, women, and children.

“Together, the two brands have reimagined iconic designs from Bape’s deep archive and ushered in a return to the golden age of streetwear collecting,” Yuga Labs said on September 25. “With one foot sourced from Bape’s Ura-Harajuku origins and the other foot sourced from the BAYC Marsh, this collection provides Bape heads and BAYC members exclusive access to clothing and accessories that reflect their shared appreciation for luxury comfort and irreverence.”

Conclusion

In this article, we’ve learned about what ApeCoin is – a token developed on the Ethereum platform, serving the ecosystem of the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) communities. APE is not just a cryptocurrency but also provides many benefits and privileges for its holders, including participation in governance, utility in transactions and payments, as well as access to exclusive events, goods, and services.