ApeCoin Review – Just Hype Or A Good Investment?

In this ApeCoin review, we’ll be discussing the tokenomics of the project, its background, and whether or not you should “ape” into this cryptocurrency (pun intended).

The Bored Ape Yacht Club has recently announced the release of ApeCoin. NFT enthusiasts who invested in the collection can now claim this token, which is touted to have prospective governance abilities and further utility down the line.

Let’s first talk a bit about the parent project, the Bored Ape Yacht Club, before diving into the ApeCoin.

ApeCoin Review Header

The Bored Ape Yacht Club (and NFTs in General)

If you’re keen on checking social media platforms often, you would have probably noticed tons of profile pics portraying cartoon apes with a bored (yet funny) face. These are part of a collection of 10,000 NFTs consisting of images of these creatures sporting assorted outfits and hairstyles.

The sudden rise in popularity of this Ethereum-based collection has garnered the attention of celebrities like Paris Hilton, Eminem, and Jimmy Fallon. Corporations like Adidas have also featured bored ape NFTs as profile pics.

These non-fungible tokens, as of the time of writing this ApeCoin review, have a hefty minimum entry cost of 94 ETH, equivalent to around $280K. The scarcity of this collection would only serve to increase the value of these assets exponentially.

The BAYC (Bored Ape Yacht Club) has also made it into the mobile game industry, releasing its first game in January of 2022, called “Apes vs Mutants”.

Bored Ape was launched in late April of 2021 by Yuga Labs, a venture originally made up of a team of four developers. Emperor Tomato Ketchup, Gargamel, Gordon Goner, and No Sass are their respective pseudonyms. At the time of writing this article, only two of the four identities have been revealed; Greg Solano and Wylie Aronow.

The initial sale priced each NFT at 0.08 ETH each (approximately $190). From that moment to the present, the value of these tokens increased to more than 1000X the original price.

While many people have been able to capitalize on this insane price rally. we shouldn’t neglect to mention that these price movements are heavily driven by emotion and speculation. There is no real utility behind these specific assets apart from being popular, and you should remain wary about investing in these projects when they’re in their prime.

What About NFTs In General?

What we just said in the previous paragraph is not totally applicable when assessing NFTs in general. Admittedly, we’re not able to tell whether the NFT era is just a passing hype that will succumb to oblivion or if they’re here to stay.

Yet, we would not deny that there is a great deal of utility in NFTs. To illustrate, many artists and musicians can take advantage of blockchain technology through NFTs to protect their work against prospective plagiarism attempts or copyright-related controversies, although this mechanism is still far from perfect.

From the onset, NFT technology has the potential to serve as the framework for future tokenization of a wide variety of non-fungible assets and securities in the real world, assigning ownership through cryptography.

Nonetheless, the regulatory status of NFTs is still uncertain, leading to concerns about compliance and the future of the NFT space as a whole. There are also many NFT scams you should be aware of.

What Is ApeCoin?

In summary, ApeCoin ($APE) is a brand new ERC-20 token (or, to put it simply, a token minted in Ethereum) that is part of the Bored Ape Yacht Club project. It was launched by a decentralized autonomous organization called ApeCoin DAO, which is not associated directly with the team behind Bored Apes, although both teams work closely together. The token is stewarded by the APE Foundation.

ApeCoin DAO is thoroughly linked with gaming and Web3 development, and has some heavyweights in the cryptocurrency community on its original board, including Alexis Ohanian (Reddit co-founder) and FTX’s Web3 venture fund leader Amy Wu.

According to the founders, ApeCoin is:

“… a token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3.” (Tweet published on Mar 16, 2022)

For those uninitiated, Web3 refers to the concept of a decentralized, human-centred internet that operates through open-source infrastructure that is accessible by anyone. Back to ApeCoin, let’s go over the tokenomics next.

ApeCoin’s current price is AU$ 9.94 (live price which gets updated every few seconds.) For more charts like the one below and a currency converter, you can also check out our ApeCoin Price Page.

ApeCoin (APE)
2.59%
AU$ 9.94
AU$ 0.257321
⇣ 9.91
11 Aug
⇡ 10.38

Tokenomics Of ApeCoin

Many aspects of ApeCoin’s tokenomics are not yet fully revealed, but, so far, we know that the total supply will be 1b ApeCoins.

The circulating supply is currently bordering 280M tokens, roughly 28% of the total and maximum supply. 15% of the total supply will be assigned to NFT holders, 15% to Yuga Labs, 8% to the founders of Yuga Labs, and 14% to contributors.

Another 47% of the total supply remains in the DAO treasury with a vesting period of 48 months. Vesting refers to the process of releasing coins to the market. A slow vesting process would ensure that the price is not overly affected.

The market capitalization of this coin ascends to over 3.5b as of the time of writing (which is the total amount currently invested in the token) with a diluted market cap of 13b (which is the equivalent amount if all the tokens were in circulation).

On March 18, 2022, 10,000 ApeCoins were airdropped to Bored Ape NFT holders, most of whom quickly sold their bags, producing a steep drop in price from $39.40 to as low as $6.48.

The almost immediate availability in some of the most popular cryptocurrency exchange platforms like Coinbase, Binance, and Gemini also contributed to this effect in the price. Leading many people to question the legitimacy of the project and to deem it as a “Ponzi scheme” of sorts.

We would not make such harsh judgments so early in the game, since this is typical crypto market behaviour.

Utility Of ApeCoin

The utility of the coin has not been wholly realized yet. From what we’ve been able to gather, the token is expected to have the following uses:

  • Governance: Holders will have a stake in the organization’s development. This means that, as a governance token, APE holders will be capable of voting on the various decisions in the DAO. Their voting power will be measured in proportion to how much APE they hold.
  • Purchases and Access: The tokens will be utilized extensively for making in-game purchases in various BAYC and nWay releases. Those who hold ApeCoin will have access to exclusive events and games featured on the ecosystem.

As of this moment, $APE is an accepted currency for microtransactions and in-app purchases in the Benji Banana game developed by Animoca Brands.

Where Can I Buy ApeCoin

As stated earlier, you can buy this coin in a plethora of exchanges. If you have a Binance or Coinspot account, you have access to the APE/USDT trading pair on these platforms. You can also use your BUSD in Binance to buy APE.

Other ApeCoin markets include Coinbase, KuCoin, Gate.io, and Huobi Global.

For Australians, we highly recommend using Swyftx when buying ApeCoin or any other cryptocurrencies.

Should I Invest In ApeCoin?

Investing in cryptocurrencies is considered a high-risk activity in general. Be mindful that the cryptocurrency market is still in its infancy, so you ought to expect volatility levels to go through the roof. As it’s often said in these spaces: “Only invest what you can afford to lose”.

With that said, some projects have earned enough recognition and solidity so as to warrant inclusion in a serious investor’s portfolio. BAYC is packed with realized goals and other promising and relatively achievable milestones on the roadmap, and, apparently, “smart money” seems to be attracted to $APE as we write this, to the point in which APE, at this moment, is among the top 50 cryptocurrencies after just days of launch.

Notwithstanding, the above should not be the only criterion when deciding to invest in a token. Remember what happened to initially-renowned projects like Bitconnect (albeit, in that case, many people had already raised questions about its legitimacy).

By contrast to the Bitconnect example, though, the accomplishments of BAYC are largely palpable, and ApeCoin’s success is intimately linked with that of its parent project. Yet, we would advise people interested in investing in these young coins to tread carefully and not put all their net worth into them out of FOMO (Fear of Missing Out)

It’s difficult to ascertain the future value of ApeCoin in the immediate short term. The crypto market as a whole has been going through a “Fear” and “Extreme Fear” phase in March, after staying mostly “Neutral” throughout February.

It’s generally envisaged that the markets bounce after remaining in “Fear” for long periods. Nevertheless, the current state of the market makes it heavily unpredictable amidst threats of crypto bans in various countries across the globe.

Additionally, with Bitcoin (heralded as the “King of Crypto”) barely able to break the 40K resistance level, altcoins are prone to suffer severe dumps in price, for the crypto market moves mostly in tandem. For people who care about making short-term profits, they might wish to wait for bullish confirmation (indicating that the price will trend upwards).

If you plan on holding ApeCoin for the longer term, you might feel tempted to buy a small bag now. However, after the violent price movements experienced in such a short span of time, investors would normally envision a cooldown period before they press the buy button, but long-term holders should not expect to buy the absolute bottom if they anticipate the price to go beyond all-time highs anyway.

Our ApeCoin Review Conclusion

Hopefully, throughout this ApeCoin review, we were able to give some clarity as to what the coin is about, as well as its background, in order to aid readers in their research.

From our vantage point, we would bet on the success of the token and its ability to surpass all-time highs in the future, though we won’t dare guess a timeframe, nor could we be able to give 100% assurance that this will be the case.

Make sure to keep an eye on the ApeCoin price changes. Once you are ready to buy, we recommend signing up to Swyftx through the buttons below, which will grant you a $20 dollar sign up bonus.

Disclaimer: This article is intended to be used and must be used for informational purposes only. It's important to understand that digital assets are risky, you should always do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.