On March 18, the ApeCoin cryptocurrency was made available to the general public. This generated a big craze in the market as many sought ways to profit. Its launch quickly became one of the most explosive price spikes of 2022 as, within the first 24 hours, ApeCoin's value surged by more than 1,000 percent.
ApeCoin is the APE ecosystem's token for ERC-20 governance and utility that enables decentralized community formation at the cutting edge of web 3.0. The coin has a one-billion-token supply that will never change as the contract interface exposes no minting functionality. Because of this, the overall supply will never increase. Likewise, the contract interface doesn't show any ability to burn tokens, ensuring that the overall supply will never decrease.
The ApeCoin Token supply of 1 billion tokens at this time is, in fact, its limit. And unlike Bitcoin and many other popular cryptos, the complete tokens were minted all at once. After minting, they were "airdropped" to their owners. Airdropping is automatically rewarding a select group of cryptocurrency holders with tokens.
Of these tokens, the DAO's treasury has been given 470 million tokens, and the ApeCoin ecosystem receives 62 percent of the token distributed in the form of 150 million airdropped coins. Yuga Labs and charity receives 16 percent of the token, which is equivalent to a donation of 10 million coins. The remaining 14% and 8% go to the coin's launch contributors and the Bored Ape Yacht Club founders.
Is ApeCoin Connected to Bored Apes NFT?
The Bored Ape Yacht Club (BAYC) NFT collection consists of 10,000 one-of-a-kind Bored Ape NFTs on the Ethereum blockchain. Yuga Labs, founded by Greg Solano and Wylie Aronow, in 2021, designed this. Celebrities such as Eminem, Steph Curry, Jimmy Fallon, and Mark Cuban are among the celebs who own the collection.
The company- Yuga Labs- has obtained the Intellectual Property (IP) rights to the CryptoPunks and Meebits NFT collections from Larva Labs, expanding its reach in the NFT field due to the success of the BAYC NFT project.
As Yuga Labs announced on Twitter, the ApeCoin will be used "as the primary token for the Bored Ape Yacht Club ecosystem as well as future Yuga products and services." The ApeCoin website says this: "APE is a token made to support what's next, controlled and built on by the community. It will serve as a decentralized protocol layer for community-led initiatives that drive culture forward into the metaverse." While many people conclude that Yuga Labs created ApeCoin, for others, there is no clear statement from the company acknowledging that.
Who Made ApeCoin?
Even though ApeCoin was announced as a cryptocurrency for members of the Bored Ape Yacht Club (BAYC) NFT collection, it dissociates from any single company thanks to a well-coordinated marketing strategy. It insists that it is a product of the ApeCoin DAO (a decentralized autonomous organization or a blockchain community formed with a set of rules) and a completely new organizational entity that token holders entirely administer. One can join the DAO simply by holding APE; without possessing a Bored Ape NFT.
Yuga Labs is in charge of all Bored Ape Yacht Club's big initiatives and acquisitions. It is the place to go if anyone wants to do anything using the Bored Ape IP. Despite this, the community of Bored Ape investors has stated that it did not create ApeCoin. And so the question remains unanswered: Who made ApeCoin?
Is ApeCoin an NFT?
An NFT (non-fungible token) is a digital asset representing internet valuables like art, images, music, and games and draws its support from an authentic certificate issued by blockchain technology.
On the other hand, in its broadest sense, a cryptocurrency is a digital currency represented by a collection of digital tokens or "coins" and existing on a blockchain- a distributed and decentralized public ledger on the internet.
Web 3.0 follows a basic concept of being more open and accepting than previous versions (web 1.0 and web 2.0). To engage in a new initiative like Yuga Labs, one used to be an accredited investor. This time, however, one can buy some coins (for instance, an ApeCoin) and start "participating" in an "ecosystem."
This is similar to some of the perks granted by having membership in NFTs. Many NFT collections have utilities like membership benefits which include exclusive advantages for owners of the NFTs.
What are the Benefits of ApeCoin?
The ApeCoin DAO, the Ape Foundation, and the ApeCoin DAO board are other bodies of the ApeCoin system besides the ApeCoin protocol. As a community with no central leadership, the ApeCoin DAO has excellent benefits, including interoperability, community governance, and democratizing access for Bored Apes. Third-party developers can join the ecosystem by integrating APE into their games, services, and other projects. They also gain incentives, and the exclusive access promised to members to get merch, games, services, and participate in events in the ApeCoin ecosystem makes many want to buy APE.
Is ApeCoin a Good Crypto Currency?
ApeCoin began trading on March 17, and by the end of the day, it had risen 3,840 percent from its beginning price of $1 per token to $39.40. On the other hand, it ended the day at $8.52 a token, a 78.38 percent drop from the day's high. This drastic drop squashed the high predictions of many excited investors.
However, APE is currently up by 13.11 percent, with a 24-hour trading volume of $2 billion. It has a live market cap of $3 billion and a circulating supply of 277,500,000 APE coins. It runs on Ethereum's proof-of-work (POW) consensus mechanism. It allows token holders to participate in the ApeCoin DAO, giving its participants a shared and open currency incentive for building at the forefront of the web 3.
With 67% of the minted coins allocated for supporting community-driven initiatives and Yuga Labs gifting APE Foundation a 1 of 1 NFT and conveying all privileges and rights to APE Foundation, APE looks to be a good investment.
Conclusion
Making a good price prediction of crypto is relatively tricky; hence it is always advisable to consider the fundamentals of the cryptocurrency of choice before venturing forward. For ApeCoin, a good understanding of the relative strength index and moving average convergence and divergence should help understand market behavior. The cryptocurrency is new on the blockchain
