What is ApeCoin? The Only Explainer Article You’ll Need

ApeCoin (APE) is the governance token for the popular NFT collection Bored Ape Yacht Club (BAYC). The token was airdropped to BAYC holders, as well as holders of spinoff collections Mutant Ape Yacht Club (MAYC) and Bored Ape Kennel Club. These collections are among the most valuable NFTs, with investors spending several hundred thousand dollars on pixelated artwork.

This article is a comprehensive ApeCoin guide and will help you decide if Apecoin is worth investing in, despite the crazy price action it has seen within its first days of trading in the open market.

What is ApeCoin?

ApeCoin is the hottest cryptocurrency in town, a governance token for the prestigious NFT collection, BAYC. Following a quick listing across several cryptocurrency exchanges, many investors have learned about ApeCoin and are considering whether or not to buy Apecoin.

As always, the best approach would be to understand what ApeCoin is and what it brings to the market.

The ApeCoin airdrop took place on March 17, 2022 at 8:30 am EST. Following its release, eligible holders could claim APE from the official website and immediately trade it on exchanges. Each BAYC holder is eligible to receive 10,094 APE with over 13,000 users having claimed it at the time of writing.

ApeCoin Claim Details

(Source: Dune Analytics)

ApeCoin has a maximum supply of 1 billion Ape coins and is already the 34th largest cryptocurrency by market cap, despite being live for less than 48 hours. At the time of writing, only 28% of the coin’s total supply is in circulation.

ApeCoin simultaneously doubles as a governance token, a memecoin, and a gaming asset. Its ties to the prestigious BAYC and MAYC NFT collection also make it one of the first NFT-backed tokens.

ApeCoin use cases include the following:

  • DAO governance.
  • Currency for use within the ApeCoin ecosystem.
  • Access to Apecoin DAO unique goodies such as games, events, merchandise, and other associated services.
  • Incentivizing developers to join the ecosystem by integrating ApeCoin into other games or services that boost ApeCoin adoption.

Who is behind ApeCoin?

ApeCoin is backed by the ApeCoin Foundation, a self-named “steward” behind the issuance and distribution of the token. According to the ApeCoin website, the ApeCoin Foundation has the ultimate goal of supporting the growth of the APE ecosystem until it transitions into a completely decentralized autonomous organization (DAO).

ApeCoin also has a board that is comprised of key leaders within the cryptocurrency ecosystem that holds BAYC and MAYC NFTs.

The ApeCoin board includes:

  • Alexis Ohanian (Reddit Co-Founder)
  • Amy Wu (Head of Ventures and gaming at FTX Exchange)
  • Yat Siu (Co-founder of Animoca Brands)
  • Maaria Bajwa (Principal at Sound Ventures)
  • Dean Steinbeck (President at Horizen Labs)

Where to buy ApeCoin

Following the release of ApeCoin, many leading cryptocurrency trading platforms added support for the asset. Hence, you can buy Apecoin (APE) on the following exchanges:

  • Coinbase
  • Binance
  • Gate.io
  • FTX
  • Kucoin
  • Nexo
  • Uniswap
  • Sushiswap

ApeCoin smart contract address: 0x4d224452801aced8b2f0aebe155379bb5d594381 (Ethereum)

ApeCoin Price Prediction 2022 and Beyond

Being a fairly new asset makes it relatively difficult to provide the best ApeCoin price predictions. However, we can draw insights from previously airdropped tokens to make possible ApeCoin price predictions for the next few months or even years.

For this purpose, we’ll take a closer look at the price trend of two airdropped governance tokens including Ethereum Name Service (ENS) and dYdX. Ethereum Name Service is an Ethereum-based service for replacing cryptocurrency addresses with human readable names, while DYDX is an Ethereum-based decentralized exchange.

The ENS airdrop took place in November 2021, while the dYdX airdrop took place in September 2021. Here is how both assets have faired so far.

ENS Price Action

Ethereum Name Service (ENS) price action (Source: Aurox)

ENS reached an all-time high of $85.69 on November 11, the same day as the token’s release. Despite a bullish market performance the following month, ENS has been on a downward trajectory, albeit helped on by an internal crisis involving the core development team.

DyDX Price Action

dYDX price action (Source: Aurox)

DYDX reached an all-time high of $27.88 on Sept. 30 2021, roughly 22 days after its initial release. At the time of writing, the token is trading around $4.9, representing an over 80% decline from its all-time high. It is currently ranked 150th on the list of the largest cryptocurrencies by market cap.

Worst Case Scenario for ApeCoin

Putting these two similarly airdropped tokens provides some perspective into possible ApeCoin price predictions. For one thing, investors are likely to see the coin hit a short-term high within a few days or weeks following the coin’s release.

Another notable trend is the possibility of the coin experiencing a steep decline after investors speculate aggressively on the initial market sentiment around the asset. Such a swift change in trends could see ApeCoin record double digit drops, perhaps in a similar fashion to the previously considered coins.

ApeCoin Price Prediction

Put simply, such a scenario could see ApeCoin drop back to the low single digits, and potentially become less relevant as investors move on to the next shiny object.

Best Possible Scenario for ApeCoin (APE)

As noted earlier, ApeCoin has features that make it slightly different. Possible adoption of assets in NFTs and gaming (a growing sector of the crypto economy) could see it gain increased market value in the coming weeks or years.

If this happens, then the coin could witness a remarkable price increase as more use cases are integrated. If markets tilt in this direction, then an ApeCoin price prediction of $50 and above may seem feasible. This would mean a breach of the current all-time high of $39.50 and another stage of price discovery.

Frequently Asked Questions About ApeCoin

Is ApeCoin Worth Investing in?

ApeCoin is a unique kind of asset that offers a similar risk-reward profile. Investors can gain just as much as they could lose and must carefully make an investment based on their personal risk profile. Obey the golden investment rule: Only invest an amount you can afford to lose.

How Can I Buy ApeCoin?

You can buy Apecoin using a cryptocurrency exchange like Binance or Coinbase. After creating an account and verifying your identity, the platform provides a simple option to fund your wallet and buy ApeCoin using a credit or debit card. You can also buy ApeCoin using other cryptocurrencies.

Can I Stake ApeCoin?

At this time, there is no known exchange that supports ApeCoin staking. However, it is likely that cryptocurrency staking for ApeCoin may become available as the asset becomes more popular among investors.

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