What is ApeCoin and how does it work?

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In the first quarter of 2022 there were talks about Apcoin (APE), a cryptocurrency adopted as the parent coin of Bored Ape Yacht Club (BAYC), developed by Yuga Labs. Since the existence of the ApeCoin DAO in April 2021, BAYC has been one of the top non-fungible token (NFT) collections with a vibrant community.

The BAYC collection displays apes that seem to be bored. Depending on your mood and preferences, you can choose these apes in the tiniest detail. Investors from all over the world have poured their money into these artworks, and buyers include people like Justin Bieber and Eminem.

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As the ERC-20 governance and utility token of the APE ecosystem, ApeCoin is administered by a Decentralized Autonomous Organization, or DAO. Anyone holding the coin is allowed to cast his or her vote on relevant governance decisions.

related: Types of DAOs and How to Create a Decentralized Autonomous Organization

The fact that APE has been adopted by Era Labs gives it a massive boost, as it also has Cryptopunks and MeBits, two other frontline NFT projects.

What is APE Ecosystem?

You might be interested in Who is behind ApeCoin. The community holders of ApeCoin and the various products/services using the cryptocurrency collectively make up the APE ecosystem. Yug Labs, Established In 2021 and headquartered in Miami, Florida, is a leading name in NFT and digital collectibles.

Acclaimed as the creator of Bored Ape Yacht Club, Era Labs serves as a community member in the Apcoin DAO. He has adopted Apcoin as his primary token in the projects he has started. Let us learn a brief about NFT collections which are a part of APE ecosystem.

BAYC

Launched in April 2021, Bored App Yacht Club (BAYC) features 10,000 unique apps residing on the Ethereum blockchain. Each of these unique digital collectibles has a different look, style, and rarity. The collection displays algorithmically generated profile pictures of cartoon apes.

Mutant Ape Yacht Club (MAYC)

As an NFT basket of up to 20,000 mutated versions of BAYC apps, MAYC helps new members to join the app community. The original BAYC NFT holders were given 10,000 mutant serum in three tiers via airdrop to add to the rarity of symptoms.

Bored Ape Kennel Club (BAKC)

Launched on June 25, 2021 at 6:00 PM EST, the Bored Ape Kennel Club (BAKC) is an assortment of dog NFTs made available to every single member of the BAYC. Holders of each Bored App NFT can adopt a random Club Dog NFT while paying only for gas. BAKC NFTs also have their rarities.

otherside metaverse

In late April 2022, Era Labs began mining the Otherside Metaverse land. Within 45 minutes, the virtual real estate saw a value of $100,000 and raised a total of $320 million, making BAYC the highest selling NFT.

How does APE work?

APE token holders collectively take governance decisions, cast their votes and decide on issues such as allocation of funds, rule making, partnerships, project selection, etc. The Apcoin Foundation implements governance decisions taken by the community.

As the legal representative of the DAO, the Appcoin Foundation facilitates the development of the ecosystem. The Foundation has a special body called the Board which executes the vision of the community. The APE Board consists of five members from the technology and crypto community. ApeCoin holders annually vote for new board members.

related: The Impact and Rise of the DAO in the Legal Industry

What will Apcoin be used for?

As a governance and utility token, Apcoin serves multiple purposes in the ecosystem. ApeCoin use cases include enabling holders to participate in the governance of the DAO and enabling them to access exclusive features of the ecosystem, such as games, events, merchandise and services.

Designed like any other Web3 coin, ApeCoin can be used for payments. ApeCoin is technically acceptable by most merchants as it is a comprehensive ERC-20 token. The coin is already in use as an NFT reward, and holders with BAYC receive free APE that they can cash in immediately.

Third-party developers use Apcoin to play a role in the ecosystem and incorporate the token into their services, games, and various projects. For example, Animoca Brands’ Benji Bananas, a play-to-earn (P2E) mobile game, used coinage as an incentive for players. While playing they will be able to earn special tokens and swap these tokens for Apcoin.

The upcoming Metaverse with Apcoin is set to be integrated with Otherside, which could make it a high-demand metaverse coin this year. This will make Apcoin a transactional token on the Metaverse Marketplace. If the Metaverse includes P2E elements, it can also be used to reward players.

Ape Coin Tokenomics

ApeCoin has a total supply of 1 billion tokens. The contract interface does not allow the mining of any more tokens, thus establishing a cap. There is also no burning mechanism, so the supply will not run out. The distribution of available tokens is as follows:

62% of the tokens are allocated to the ApeCoin DAO community. Meanwhile, 15% finds its way to the holders of BAYC and MAYC. BAYC holders can claim 10,094 APE for each of their NFTs, while MAYC holders are entitled to 2,042 APE. The remainder will be issued as a component of the DAO’s Ecosystem Fund.

16% of tokens will flow to Yuga Labs. A portion of this allocation will go towards primatologist Jane Goodall’s charity foundation. 14% of the tokens are for those who contributed to the launch of the ApeCoin protocol.

8% of the tokens are set aside for the four founders of Yuga Labs and BAYC. Apcoin follows the concept of a locked token to prevent the founders of Yuga Labs, BAYC, and other launch contributors from selling their holdings. Their ApeCoin allocation has not been unlocked for at least 12 months. After this period, a specific allocation of tokens becomes accessible to them on a monthly basis.

How to buy Apcoin?

You can buy Apcoin on a crypto exchange, usually through a three-step process:

  • Sign Up: On the sign-up page, enter your email address, contact number, and username. The system will verify your email ID and prompt you to enter a strong password.
  • Full KYC: Most regulatory domains require users to complete a Know Your Customer (KYC) process. You will need to upload your ID and other required documents, and your account will be activated within minutes.
  • Buy ApeCoin: Now you can deposit your fiat and buy as many ApeCoin as you want.

Is Apcoin a good investment?

The fact that Apcoin is issued by a dynamic online community such as Bored Apk Yacht Club has given streams of takers to it since its inception. Fans of art, culture, gaming and entertainment are more likely to use cryptocurrencies. The sale of Metaverse land will also boost the coin.

There are many reasons to buy ApeCoin such as using APE as a payment option, NFT rewards and access to exclusive features in the APE ecosystem giving buyers many reasons to buy it. Despite all these factors, the coin is intrinsically linked to NFT-related volatility, which you need to be careful about.

road ahead

At a time when NFTs are still taking the crypto sector by storm, Apcoin has managed to steal the headlines since its appearance. Token makers have used a number of incentives to promote its usefulness such as allowing third-party developers to integrate the cryptocurrency into their projects and establishing an ecosystem fund to support projects using the coin. .

With use cases spanning from decentralized payments to land sales on the Metaverse, the company has a number of supporting components. As the APE ecosystem grows, Apcoin generates more value than is realistically expected.