What Is ApeCoin (APE)?

ApeCoin (APE) is a cryptocurrency deployed on the Ethereum blockchain designed to fuel the APE ecosystem, a decentralized community centered around the popular Bored Ape Yacht Club (BAYC) NFTs. Think of it like a digital membership pass that grants access to this exclusive online community and offers DeFi features and a decentralized governance system.

Launched in 2022, APE was initially airdropped to BAYC NFT holders, a move that contributed to its initial hype and popularity. However, it has also faced criticism regarding potential market manipulation and a lack of clear utility beyond its association with BAYC.

Key Takeaways

• ApeCoin is the native coin of Bored Ape Yacht Club (BAYC), an NFT collection developed by Yuga Labs.
• ApeCoin is an ERC-20 governance and utility token of the APE ecosystem, which a DAO administers.
• APE token holders have the right to vote on governance decisions, and ApeCoin’s association with Yuga Labs adds to its credibility.

What Is The History of ApeCoin?

In 2022, with BAYC soaring in popularity, whispers of a companion token, a digital door key to this exclusive ape-filled club, began to circulate¹. In April, ApeCoin was launched by the BAYC creators YugaLabs, airdropping it directly into the wallets of existing BAYC NFT holders. This initial distribution, a free shower of digital bananas, fueled instant excitement.

Yat Siu, a blockchain veteran and prominent advisor to Yuga Labs, envisioned ApeCoin as a fuel source for a decentralized utopia, a DAO (decentralized autonomous organization) where ApeCoin holders collectively steered the ship². This grand vision, however, faced immediate skepticism. Critics questioned the utility beyond BAYC membership, hinting at potential pump-and-dump schemes and a lack of tangible value.

Undeterred, Yuga Labs and Siu pressed on. Partnerships blossomed, with the likes of Animoca Brands and Coinbase integrating ApeCoin into their platforms. Exclusive games, metaverse experiences, and even a merch store opened their doors to ApeCoin holders.

How Does The ApeCoin Ecosystem Work?

ApeCoin fuels a decentralized community called the Ape Ecosystem, built around the popular Bored Ape Yacht Club NFTs. Imagine it as a club with perks powered by a digital token. Owning ApeCoin lets you:

1) Vote on decisions shaping the club’s future (games, events, or partnerships).

2) Unlock exclusive access to games, metaverse experiences, and merch.

Essentially, APE is the token that runs the Bored Ape metaverse³, which has grown from a few monkey PFPs to a massive digital space with events, games, and secondary NFT collections. These are the leading NFT collections in the Bored Ape metaverse:

Bored Ape Yacht Club (BAYC)

Bored Ape Yacht Club (BAYC) is an NFT collection launched in April 2021. It features 10,000 unique Apes residing on the Ethereum blockchain. Each of these unique digital collectibles features a different look, style, and rarity. The collection showcases algorithmically generated profile pictures of cartoon apes.

Mutant Ape Yacht Club (MAYC)

As an NFT basket of up to 20,000 mutated versions of the BAYC Apes, the Mutant Ape Yacht Club (MAYC) helps onboard new members to the Ape community. Original BAYC NFT holders were handed 10,000 mutant serums in three tiers via airdrop to add the rarity of traits.

Bored Ape Kennel Club (BAKC)

Bored Ape Kennel Club (BAKC) is an assortment of dog NFTs launched in June 2021. It is made available to every single member of the BAYC, and holders of each Bored Ape NFT can adopt a random Club Dog NFT, while just paying for gas.

Otherside metaverse

The Otherside metaverse⁴ is a virtual world developed by Yuga Labs that goes beyond PFP (profile picture) NFTs. It aims to be more than just a blockchain game. At the end of April 2022, Yuga Labs began minting Otherside metaverse lands. Within 45 minutes, the virtual real estate clocked a value of $100,000 and raised a total of $320 million, making BAYC the NFT garnering the maximum sales.

What Are The Tokenomics of ApeCoin (APE)?

ApeCoin is an ERC-20 token with a maximum supply of 1 billion tokens, and the contract interface prevents the minting of any additional tokens. There is no burning mechanism in place, so the supply will remain constant. According to CoinGecko⁵, APE has a market capitalization of $600 million and trades for $1.66, which is around 93% below its all-time high.

The distribution of the tokens is as follows:

How Has ApeCoin (APE) Traded In 2023, And What Is The APE Price Prediction?

ApeCoin (APE) is on the ropes. Massive token unlocks have flooded the market with sell orders⁶, and there simply hasn’t been enough buying pressure to keep up. As a result, APE has crashed from its all-time high of $26 to well under $2.

Changelly⁷ is bullish on ApeCoin despite the 2022 and 2023 downturn. They’ve set an average price target of over $2 for the end of 2024 and $2.9 for 2025. By 2030, they see it trading above $15.

Coincodex⁸ is optimistic about the future of ApeCoin. They’ve set a yearly high target of $3.7 for 2024 and $12 for 2025. They don’t predict a new all-time high this decade.

Remember that crypto prices are extremely volatile, and you should always do your own research before risking your capital. Nothing in this post should be considered as financial advice.

Final Thoughts on ApeCoin

ApeCoin (APE) enjoyed a massive amount of hype when it launched. Many people were excited to gain exposure to the Bored Ape NFT collection without having to spend vast amounts of capital. Although the APE community has successfully given the token several use cases, its value has been hammered in the past two years. A series of massive token unlocks have driven sell pressure, and the token has crashed to a fraction of its all-time high.

Frequently Asked Questions