What is the ApeCoin newly launched this year by Yuga Labs, the parent company of the strongest IP in the Metaverse, the boring ape? What is its future value?
1. What is ApeCoin?
ApeCoin, an ERC-20 token running on the Ethereum chain , launched in March 2022 as part of the Boring Ape Yachting Club (BAYC) community and ecosystem.
Due to the popularity of BAYC and its related boring ape IP ecosystem, ApeCoin has been popular since its launch. At its launch, BAYC and MAYC NFT holders could claim 150 million ApeCoin airdrops, accounting for 24.2% of the Ecosystem Fund and 15% of the total ApeCoin supply. According to Dune Analytics, more than 90% of all eligible addresses received the ApeCoin airdrop within two weeks after ApeCoin was issued.
The total supply of ApeCoin is 1 billion, and there is no inflation or deflationary token burn mechanism built into the economic model. In addition, the ApeCoin DAO’s funding distribution is as high as 47%, with 15% airdropped to NFT holders and about 38% to early contributors and conservation group Jane Goodall Heritage Foundation.
With its strong market influence, ApeCoin can be seen on almost all mainstream trading platforms, such as Binance, FTX, Coinbase Pro and Uniswap . On the first day of trading, the unit price of ApeCoin rose from $5 to $17.75, before falling below $10 in the following days.
ApeCoin’s all-time high was as high as $27.50, more than five times its price when it was first released. However, due to the impact of the bear market in the first half of 2022, the unit price of ApeCoin has also experienced a drop below $5.20, trading at around $6.34 on July 21, with a market value of over $1.94 billion.
2. ApeCoin DAO and the Boring Ape Community
The company behind both ApeCoin and BAYC is Yuga Labs, which is also responsible for acquiring some important projects around BAYC and other themes, including the Boring Ape Mutation Club, the Boring Ape Kennel Club, the BAYC mobile app game and other Boring Ape IP. Debuting in April 2021, Yuga Labs built up strength in just over a year, partnering with Adidas in the fourth quarter of last year, and announcing plans for their Ethereum-based utility token, ApeCoin, at the end of 2021.
In March 2022, ApeCoin DAO released ApeCoin, which is a decentralized management organization for token $APE holders to participate in community management, and they can deliberate and vote in an ancient Athenian-style radical democracy. ApeCoin all represent a voter in the ApeCoin DAO, therefore, all holders will actively participate to enhance the overall interests of the community.
Although Yuga Labs was founded in early 2021 with only 11 full-time employees, they have been able to grow rapidly due to their popularity with many VCs and their popularity in the crypto market. As of March 2022, Yuga Labs announced that it has successfully raised $450 million at a valuation of up to $4 billion.
The Ape Foundation is the backbone and legal support of ApeCoin DAO, responsible for handling the daily operations of its DAO, such as community proposals, logistics and other management operations, ensuring that the management of the community is not neglected and the community is kept alive.
The board of directors of ApeCoin DAO has borrowed a subcommittee derived from the Ape Foundation, including five prominent opinion leaders and investors in the crypto space. The first subcommittee members are Amy Wu of FTX, Reddit co-founder Alexis Ohanian, Yat Siu of Animoca Brands, Maaria Bajwa of Sound Ventures and Dean Steinbeck of Horizen Labs. Each subcommittee serves on the board for 6 months before DAO members vote to elect a new representative.
3. Purpose of ApeCoin
The launch of ApeCoin indicates the rapid development of BAYC. In addition to NFT itself, BAYC also held offline celebrations, mutant serum airdrops and other activities. In addition, ApeCoin breathes new life into the community in a number of ways.
First, the biggest use is to use ApeCoin as the settlement currency for the entire Yuga Labs economic ecosystem.Yuga Labs wants to use ApeCoin as a de facto currency of value, rather than a simple speculative asset, and at the same time avoid dissatisfaction with the US Securities and Exchange Commission, after all, the US federal government has not been very optimistic about cryptocurrencies.
▲ Bored Wine Company allows users to mint their own BAYC-themed wine bottles as NFTs on OpenSea before products are shipped .
Second, ApeCoin acts as the governance token of the ApeCoin DAO. ApeCoin holders are closely related to the development direction of the community. After the community is successful, they can also obtain economic and even social benefits.
▲ E11even Residences supports the purchase of condominium units with ApeCoin, but there seems to be no discount.
Third, in addition to being a transaction currency within the BAYC ecosystem, ApeCoin has also penetrated into actual transactions in real life. For example, E11even Residences announced that it is accepting ApeCoin for the purchase of its luxury condo in Miami. Salt Water Brewery, a beer shop in Delray Beach, Florida, also said on its Twitter that it accepts ApeCoin payments and is offering half-price discounts.
▲ The screenshot is from the official Twitter of Salt Water Brewery, saying that there are discounts for purchasing drinks with ApeCoin, and holders are welcome to enter the store for consumption.
Fourthly, ApeCoin holders can also enjoy special access rights or discounts for BAYC events and related games. For example, Benji Bananas, a mobile game in Animoca Brands, uses ApeCoin as a special in-game currency (its co-founder Yat Siu is a board member of the ApeCoin Foundation). For less than 0.2 ETH, OpenSea users can purchase the Benji Bananas Membership Pass NFT, which offers owners $PRIMATE tokens in-game to exchange for ApeCoin on the Ethereum blockchain.
▲ The screenshot is from OpenSea, and the price of the membership pass fluctuates greatly
4. Otherside Metaverse Land Sale Issue
Yuga Labs and BAYC also make some Metaverse games, such as the Otherside Metaverse, a colorful world made up of 200,000 “lands” that users can own after purchasing and minting Otherdeed (NFTs that represent virtual land ownership) . Otherdeedd is a new opportunity for new investors to join BAYC. Due to the popularity of Boring Ape NFT, it requires high capital to join the Ape community. Many investors have this new opportunity after being discouraged. For example, on May 26, the cheapest boring ape on OpenSea cost 66 ETH. Therefore, starting with $APE and casting Otherdeed has become the most cost-effective way to join BAYC.
▲ 55,000 Otherdeed will go on sale on April 30, 2022, and the rest of the land will be distributed to BAYC NFT holders, Yuga Labs and its partners and employees. Source: Otherside
Boring Ape and Mutant Ape NFT holders do not need to go through the KYC process and their identities can be verified on-chain. But for Otherdeedd, in order to ensure the orderly sale, the government performed KYC verification before investors minted coins, and sold Otherdeed at a fixed unit price of 305 $APE, but in fact the scene at the time of issuance was still in chaos. In just a few minutes, more than $200 million worth of virtual land was sold through the first NFT minting, and the surge in sales created a massive congestion on the Ethereum network, which eventually resulted in gas fees of up to $5,000 per transaction.
The data shows that the number of wallets that have performed KYC far exceeds the number of NFTs available for sale, indicating that even though many investors have enough ApeCoin and paid huge sums of money for gas fees, the minting has not been successful. Early minted NFTs are sold on the secondary market at double or triple the minting cost (305 $APE, plus ETH gas fees), but the first minting of this type is still hard to come by, and it’s worth 55,000 otherside lands. Gas prices remained high until they sold out. Some users claim to pay gas fees of up to 5 ETH during the minting process, while others complain about losing their money due to failed transactions, all due to Ethereum’s throughput constraints during busy periods.
▲ The screenshot is from the official Twitter of Yuga Labs, Yuga Labs proposed to transfer ApeCoin to its own blockchain.
After the incident, Yuga Labs tweeted an apology for the nearly collapsed Ethereum. In view of the huge user demand for ApeCoin and the limitations of the current form of Ethereum, its community suggested that ApeCoin be transferred to its own blockchain, for more efficient expansion.
Additionally, Yuga Labs encourages the ApeCoin DAO to discuss the possibility of addressing potential migration or Layer 2 scaling solutions. Believe that all blockchain protocols want to include the BAYC community in their ecosystem if given the chance, but the truth is that scalable blockchains as secure as Ethereum are rare, and when the network experiences peak traffic, other Blockchain may have fared worse.
Yuga Labs has also mentioned developing a custom ApeCoin blockchain in its forum discussions, but due to R&D cycle issues, this plan seems unlikely to materialize in the near future. The ApeCoin DAO is reportedly in talks with Avalanche from Ava Labs or Flow from Dapper Labs .
5. Write at the end
Otherside NFT minting, and widespread market adoption of utility tokens proves that Yuga Labs, BAYC and ApeCoin have huge and lasting potential.
While Otherside’s minting has been less than satisfactory, leaving the community and its ownership on the Ethereum chain confused, the future of BAYC remains very optimistic. Once Yuga Labs and ApeCoin DAO figure out how to expand ApeCoin’s audience and democratize its price, I believe ApeCoin can gain real popularity. At this stage, ApeCoin is like a little monkey that just jumped out of a rock. Maybe one day it will become a battle against Buddha.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-is-apecoin-and-apecoin-dao-what-is-the-future-value-of-apecoin/
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