In the meme-token-driven crypto community, “hozen tricks” are serious business.
The Bored Ape Yacht Club (BAYC) NFT phenomenon has exploded, becoming news headlines, a tool for celebrities to elevate their status, a cartoon image, not to mention its high value.
Today, BAYC’s new cryptocurrency, Apecoin, is the talk of the town.
But is this cryptocurrency just a cynical attempt to cash in on the Bored Ape trend, or is it a good investment for the future?
ApeCoin (APE) was created by Yuga Labs, the company behind the Bored Ape Yacht Club NFT, as a derivative of Mutant Apes, but the currency was actually launched by the ApeCoin DAO to create some distance from the original company and maintain decentralization management.
The DAO will handle all ApeCoin transactions, and the token itself is billed as a token of “art, entertainment, events, and stories.”
Thanks to this, ApeCoin clearly has a place in the Web 3.0 metaverse and has been integrated into games developed by Ubisoft-backed Animoca Brands.
Early Development of ApeCoin
The token debuted on March 17th, giving 15% of the total supply of 1 billion to current BAYC NFT holders for free.
This action resulted in a predictable giveaway sell-off at launch, meaning ApeCoin’s price on exchanges saw considerable volatility.
Its value surged to $40 at one point, before diving sharply to around $8.
Recently, ApeCoin’s value surged again to around $14 following a successful funding round by Yuga Labs.
Analysts have warned investors that ApeCoin’s distribution structure should be considered when making price predictions.
22% of all issued tokens are reserved for BAYC’s individual founders and “the companies and people who help make this project a reality.” Yuga Labs holds 16%, and the aforementioned 15% is distributed to BAYC NFT holders.
The remainder is held by the DAO inventory. As such, existing BAYC insiders, affiliates and NFT holders have considerable influence over the entire supply chain.
Since a certain percentage of early ApeCoin holders will be waiting to sell their tokens for profit, there may be a larger sell-off in the future.
The supply of 1 billion APE is fixed, and the DAO has stated that it will not create new coins nor destroy tokens.
However, BAYC’s strong brand power and financial backing does put ApeCoin in a strong position.
If the community’s ambitions are realized, ApeCoin could become a valuable metaverse token.
Metaverse tokens in the making?
The ApeCoin DAO aims to develop a system that uses ApeCoin as a governance token for community decisions and a utility token for transactions.
Based on the BAYC concept, APE holders can also gain access to digital or real-world events for participation and prop items.
While ApeCoin intends to expand to a range of games and entertainment products, it is currently only tied to 2 known games.
One of them is the mobile game “Benji Bananas” by Animoca Brands, whose board member Yat Siu is a member of the current ApeCoin DAO’s management, Ape Foundation.
Other members of the Ape Foundation include Alexis Ohanian (co-founder of Reddit, general partner and founder of 7seven Six), Amy Wu (head of VC & Gaming at FTX), Maaria Bajwa (head of Sound Ventures) and Dean Steinbeck (President and General Counsel of Horizen Labs).
While these members may be voted out by the community in 6 months, there is some solid expert opinion and industry influence at the helm right now.
ApeCoin will also be integrated into upcoming games developed by nWay, an Animoca subsidiary.
nWay is known for developing fighting games, but a teaser image shared by the company shows that the upcoming game will feature Bored Ape, giving it a unique art style similar to the cartoon Red Ape Family ).
If these integrations are successful, the Bored Ape brand will be able to build a “media empire” from which ApeCoin will surely benefit.
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