What is ApeCoin? Why did its value skyrocket by more than 50 percent in a week?

The Bored Ape Yacht Club (BAYC) is one of the most prominent collections of non-fungal tokens (NFTs) in the world. The series of 10,000 blockchain-based cartoon primates, worth about $ 3 billion (about Rs. 22,855 crore) at today’s prices, has become ubiquitous on the internet. Last week, people associated with the Bored Ape Yacht Club launched a cryptocurrency called ApeCoin. The pitch to investors was vague: supporting projects related to the Bored Apes and “community-led initiatives that propel culture forward to the metaverse”.

It’s been a little over a week since then and despite a sluggish start to debut day, ApeCoin’s value has risen with week-to-date gains rising by more than 58 percent at the time of writing.

There is currently no real use case for the ApeCoin, despite its $ 13.6 billion (approximately Rs. 1,03,640 crore) fully diluted market capitalization, and it is not clear what its use will be in the future. Yuga Labs, which developed the Bored Ape Yacht Club, has been awarded a portion of the ApeCoin tokens, but it is not a Yuga Lab token and it is not officially affiliated with the company.

What is ApeCoin and who are its founders?

ApeCoin is an ERC-20 driving and utility certificate from the Bored Ape Yacht Club of BAYC, but as mentioned, the coin was not created by Yuga Labs, the developers of BAYC. Instead, it was created by ApeCoin DAO.

ApeCoin DAO empowers its community to design blockchain games and services, as well as to create physical and virtual merchandise. The organization is administered by the ApeCoin Foundation. While some think that Yuga Labs’ decision to separate itself from ApeCoin is a step towards decentralization, others think that Yuga Labs is trying to avoid regulatory backlash from the SEC.

The ApeCoin DAO is led by a board consisting of Alexis Ohanian (Reddit), Amy Wu (FTX), Maria Bajwa (Sound Ventures), Yat Sui (Animoca Brands), and Dean Steinbeck (Horizen Labs).

Although the sign and DAO are not directly linked to Yuga Labs and its Bored Ape Yacht Club (BAYC), the two are associated, and therefore holders of BAYC NFTs received free ApeCoin with the release of the cryptocurrency, and it will serve as the main sign for the BAYC ecosystem.

While the team behind ApeCoin acknowledges that the token is primarily a meme coin, it is also trying to build an ecosystem around the crypto-currency. Services that the coin will use include The MonkeyFirm NFT platform, a decentralized exchange, and play-to-earn game projects.

According to ApeCoin’s website, “APE is a sign made to support what is next, controlled and built on by the community. It will serve as a decentralized protocol layer for community-led initiatives that propel culture forward in the metaverse.”

How is ApeCoin distributed?

In total, there are 1 billion ApeCoins. Of that number, 14 percent will go to “launch contributors”, 8 percent to the founders of BAYC, and 16 percent will go to the Yuga Labs. BAYC and MAYC containers also received a claim on 15 percent of the total circulation, while the rest will form part of the DAO’s “ecosystem fund”.

According to a statement, the token holders will be able to vote on all community decisions. All other special decisions will be left to the DAO Council. Yuga Labs also noted that it will adopt ApeCoin as its primary sign for future products and services. While Animoca Brands’ blockchain game, Benji Bananas, also plans to implement the sign in its architecture. The sign also remains central to ApeCoin DAO’s intention to trade both physical and virtual goods.

ApeCoin is available for trading on several global exchanges, including Binance, Coinbase, KuCoin, Huobi, Kraken, Bybit and FTX. Since its launch, a myriad of Indian exchanges have also added the sign to its list of tradable items, including Giottus and CoinDCX.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by techlives. techlives will not be liable for any loss arising out of any investment based on any observed recommendation, forecast or any other information contained in the article.

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