ApeCoin (APE) Shrugs off Its Debut Bruises and Soars Over 50 Percent Today as the NFT Mania Continues

Rohail Saleem

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ApeCoin (APE), an Ethereum-based utility and governance token that is intended to power the Bored Ape Yacht Club community, plunged around 80 percent yesterday, only to recoup a large proportion of those losses today as volatility-induced price swings continue.

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In fact, ApeCoin is currently up over 50 percent relative to yesterday’s closing price but is still down over 36 percent relative to its debut price of $20.4. The coin is currently trading at $12.88.

Source: https://coinmarketcap.com/currencies/apecoin-ape/

What is ApeCoin (APE)?

As stated earlier, ApeCoin is intended to power the Bored Ape Yacht Club, a collection of 10,000 profile pictures minted as NFTs on the Ethereum blockchain. Developed by Yuga Labs, the Bored Ape Yacht Club is an exclusive NFT-focused organization, with entry reserved for only those individuals who actually own an eligible NFT. As a refresher, a Non-Fungible Token (NFT) is a deed of ownership of sorts for a digital item, thereby turning it into an asset.

Bear in mind that Yuga Labs did not create the ApeCoin. Instead, it is the brainchild of ApeCoin DAO, a Decentralized Autonomous Organization (DAO) created to govern the token and its future development.

Coming back, ApeCoin has a total supply of 1 billion tokens. 150 million APE tokens have been airdropped to holders of eligible NFTs so far as a reward. Each eligible NFT entails a predetermined reward in the form of ApeCoin. For instance, 10,094 APE tokens have been reserved for the holders of Bored Ape NFTs, while 2,042 tokens are now reserved for Mutant Ape NFTs.

Source: https://apecoin.com/about

Out of its total supply of 1 billion tokens, 15 percent or 150 million are now being airdropped as rewards from the ecosystem fund. Around 47 percent of the total supply of 1 billion APE tokens is intended to fund the operation of the ApeCoin DAO, with this supply gradually vesting over a 48-month period. 15 percent is intended for Yuga Labs, while another 8 percent will go to the four founders of Bored Ape Yacht Club. Another 14 percent is intended for other individuals who contributed toward the launch of the ApeCoin. Finally, the residual 1 percent of the total supply or 10 million tokens will be donated to the Jane Goodall Legacy Foundation.

Is APE Coin Worth it?

So, why should anyone hold ApeCoin? Obviously, if you are a member of the Bored Ape Yacht Club, the answer is a lot simpler. You would need this token to vote on community-led proposals. However, the coin entails an expanding ecosystem beyond the purview of the Bored Apes community. For instance, it can be used as a payment on DApps that accept the token. Already, game developer nWay announced that it would use ApeCoin in an upcoming play-to-earn game. Moreover, crypto game developer Animoca Brands intends to integrate the token with an upcoming project whose details have not been revealed yet.

Even real-life use-cases are now popping up. For instance, E11EVEN Residencies in Miami has announced that it would accept the APE token as a form of payment. SaltWater Brewery has announced a discount on all purchases made via the ApeCoin.

Of course, for the holders of the eligible BAYC NFTs, ApeCoin airdrops are currently offering solid returns on the original USD investment:

So, is APE a passing fad or a genuine investment? It is hard to quantify such a subjective thesis. If you believe NFTs are here to stay, the ApeCoin is a no-brainer investment. If, on the other hand, you wouldn’t touch an NFT with a 10-foot pole, this coin is obviously not for you. In the long run, the more utility that the ApeCoin is able to grab, the higher is the probability for a bullish price run.

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