ApeCoin – Why Crypto Investors Are Going Bananas For It!
The internet is filled with so many wacky yet interesting cryptocurrencies. Many of them have genuine use-cases while others rely on hype. Regardless, you can find so many people flocking to the new cryptos.
ApeCoins is one of the latest cryptocurrencies that spurred the interest of many investors. Before you go swinging for this new opportunity, you have to check it first. Is ApeCoin legit, or is it just monkey business?
We will talk about a few important terms before we discuss ApeCoin. Then, we will talk about what ApeCoin does and how it works. In turn, you should have some idea about whether or not you should invest in this monkey money or not.
Before you read about ApeCoins
There are a few terms you should know before we can talk about ApeCoin. The cryptocurrency trend is growing worldwide, but many people still don’t know how they work.
That’s fine because cryptos have only entered the mainstream about a decade ago. What’s more, it has high ambitions for improving the world.
Cryptos want to bring a new global financial system, but it mixes a wide range of technologies that most people don’t know. That’s why we will start with an overview of those terms. That way, you’ll have an easier time following the discussion about ApeCoin later.
What is cryptocurrency?
You’re probably familiar with the first crypto asset known as Bitcoin (BTC). It came out in 2009 from the creative mind of Satoshi Nakamoto.
This person designed Bitcoin intending to bring a new decentralized financial system. It is supposed to replace the one we currently use.
Bitcoin’s system won’t rely on banks or governments. Instead, people may volunteer with their computers to operate the network.
Here is how the system works:
- People use their computers to confirm bitcoin transactions. This practice is called crypto mining, so the people who do it are miners.
- When someone uses bitcoin to buy something, it has encryption protecting it. Miners must compute for the code that matches the encryption.
- The first one to get the code gets to add a new block of data to the crypto network, hence the name “blockchain.”
- What’s more, the winning miner earns proof-of-work which lets him earn more bitcoins as a mining reward.
A public ledger records all the transactions, but it only saves certain details. Specifically, it keeps the bitcoin addresses of the senders and recipients and the amounts of bitcoin involved.
Nowadays, bitcoin isn’t the only crypto available. You can find others that have unique features. For example, Ethereum (ETH) uses the proof-of-stake model instead of proof-of-work.
Moreover, cryptos now provide more products and services. For example, we now have non-fungible tokens like ApeCoins with numerous use-cases.
What are NFTs for?
— Snoop Dogg (@SnoopDogg) March 20, 2022
You may have heard about NFTs after reading news about someone making millions after selling one. Yet, most people don’t understand how they work.
NFTs or non-fungible tokens are forms of media that have ownership tied to a blockchain. This allows someone to have a unique copy even if there are numerous replicas available.
It’s like buying an original artwork instead of getting a printed version of it. Nowadays, you can find the most famous artworks secured by the largest museums.
You can find various high-definition photographs of those artworks. Yet, you’ll be hard-pressed to find someone who would print those out and frame them on their walls.
Wealthy people can print a copy of such masterpieces, but you can find them bidding millions of dollars for the originals. NFTs work with the same principle.
People pay a high price for their NFTs because they believe their attachment to a crypto network gives it value. However, NFTs aren’t just art pieces.
NFTs can also be tickets to public events, so it can prevent scalping. Each ticket has a unique signature that will only work for one person. This means someone can’t resell them at a secondary market for a huge markup.
Read More: What Are Non-Fungible Tokens?
What are DAOs?
What if a company works in reverse? Instead of a few people making all the decisions, the employees vote on such actions? That’s what DAOs provide with the power of cryptocurrency!
The acronym stands for decentralized autonomous organization. You can join by holding its native token. For example, the ApeCoin DAO uses its namesake cryptocurrency.
Once you do, you will have the authority to vote on changes proposed to the DAO. Despite being a relatively new concept, you can find many examples around the world.
For example, the Philippines has the Yield Guild Games DAO started by Gabby Dizon. It won an award after it made a documentary about the NFT game Axie Infinity helping Filipinos during the pandemic.
What is ApeCoins crypto?
Introducing ApeCoin ($APE), a token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3. 🧵
— ApeCoin (@apecoin) March 16, 2022
You might be asking why this topic needs this much background information. That’s because ApeCoin is a combination of all these concepts.
Before ApeCoins, we have the Bored Ape Yacht Club (BAYC) that started in April 2021. It’s the NFT collection that featured strange-looking monkeys.
You may have seen a few of them in news reports. They have monkey heads with different hairstyles, accessories, and even fur colors.
If not, then you may have noticed your favorite celebrities promote them. Well-known personalities like basketball star Stephen Curry and rapper Eminem used those as their social media profile pictures.
The founders of BAYC know that the next iteration of the internet called Web 3.0 is coming. They wanted the BAYC to prepare for the changes that it will bring.
These innovations include the widespread adoption of cryptocurrencies and the successful launch of the Metaverse. As a result, they launched the ApeCoin DAO.
It will help the ApeCoin community band together and decide on the future of the NFT collection. It’s headed by the APE Foundation.
Here are its leading members:
- Alexis Ohanian is the co-founder of Reddit.
- Amy Wu is the head of Ventures and & Gaming for FTX.
- Maaria Bajwa is the principal at Sound Ventures.
- Yat Siu is the co-founder & chairman of Animoca Brands.
- Dean Steinbeck is the Horizen Labs President & General Counsel.
These people are in charge of administering decisions for the ApeCoin DAO. Yet, their long-term goal is to make it decentralized over time.
ApeCoins make this possible by allowing the members to vote on important decisions for the DAO and the NFTs.
What is ApeCoin used for?
ApeCoins is an ERC-20 utility and governance token for the APE ecosystem. In other words, it’s built on the Ethereum network.
Also, it follows the same “format” with Ethereum coins (ETH). Utility tokens serve a specific purpose for a cryptocurrency while governance tokens provide voting rights.
Let’s look deeper into the purposes of ApeCoin:
- Access – ApeCoin opens access to specific features like exclusive events, merchandise, games, and services.
- Governance – As mentioned earlier, ApeCoin lets its holders join the ApeCoin DAO.
- Incentivization – Third-party developers can use ApeCoin to join the Bored Ape community. They may incorporate APE into their games, services, and other projects.
- Unification of Spend – All Bored Ape members can use ApeCoin for transactions with each other without centralized third parties.
At the time of writing, this is how the total supply of ApeCoin is distributed:
- Ecosystem fund (62%) – The Bored Ape Yacht Club and the Mutant Ape Yacht Club get 150,000,000 ApeCoins. Meanwhile, the DAO treasury and resources will have 470,000,000 ApeCoins.
- Yuga Labs & Charity (16%) – Yuga Labs is the creator of the Bored Ape Yacht Club, and it gets 150,000,000 tokens. Also, the Jane Goodall Legacy Foundation gets a donation of 10,000,000 ApeCoins.
- Launch contributors (14%) – The people who supported ApeCoin from they start receive 140,000,000 ApeCoins.
- Bored Ape Yacht Club founders (8%) – The founders of Yuga Labs receive 80,000,000 ApeCoins.
If you have Bored Ape, Mutant Ape, or Kennel Club NFTs, you can also receive ApeCoins. Here’s how the allocations work:
- Bored Ape only – 10,094 ApeCoins
- Mutant Ape only – 2,042 ApeCoins
- Kennel Club + Bored Ape – 10,950 ApeCoins
- Kennel Club + Mutant Ape – 2,898 ApeCoins
Note that the Kennel Club NFTs don’t need to have matching token IDs with Bored Ape and Mutant Ape. Visit the ApeCoin website for more information.
Should you invest in ApeCoins?
Learn more 👇https://t.co/XzQG0TmhI2
— Binance (@binance) March 18, 2022
At the time of writing, the price of an ApeCoin was $11.82. The question is, should you add ApeCoins to your portfolio? After all, it’s so easy to do!
You can purchase those from major cryptocurrency exchanges like Binance and Coinbase. Whether it would be worth it or not is up to you.
This may seem like a long article, but it only provides an overview of ApeCoins. If you’re serious about investing, you need to look deeper into this asset.
That means visiting the ApeCoin website to see what the project is all about. Also, you have to know more about cryptocurrencies.
More importantly, you should have a clear goal for investing. Do you want to make money now, or do you need savings for later? Answer such questions, so you have an idea of the types of assets you need.
The Bored Ape Yacht Club now has a cryptocurrency. Perhaps you’d like to check it out if you’re interested in blockchain technology in general.
Note that this article is not meant to provide investment advice. Plan carefully before purchasing any asset. Make sure you know everything you can before investing.
Fortunately, you’re already on a great website for that. Check out the other Inquirer USA articles to learn more about cryptos and more.