ApeCoin – APE

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ApeCoin – APE

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Contract adress: 0x4d224452801aced8b2f0aebe155379bb5d594381

Bored Ape Yacht Club – BAYC is one of the most exclusive ⁠and well-known communities in the NFT space. Becoming more popular by rewarding – airdropping APE tokens (worth millions of dollars) into the account of Bored Ape NFT holders and partners.

However, the way APE tokens are distributed through the airdrop makes investors wonder if its infrastructure is indeed decentralized or rather centralized. Keep reading as we get to the bottom of this and cover APE’s future (gaming) use cases aswell.

What is ApeCoin – APE?

ApeCoin – APE is a ERC20 token (Ethereum based) designed for utility. ApeCoin tokens will be mostly used for making payments in future gaming and entertainment applications.

It’s also considered a governance token, meaning it allows token holders to vote on future partnerships and developments on Bored Ape Yacht Club – BAYC.

 

The Bored Ape Yacht Club members consist of people that bought and hold a Bored Ape avatar NFT.

An NFT collection limited to 10,000 NFT’s.

 

 

On Twitter ApeCoin describes itself as a token for;

  • Culture
  • Gaming
  • Commerce 

 

As the Twitter post suggests, its goal is to contribute to building web 3.0, referring to an era where the World Wide Web would run on the blockchain, supporting among other things payments of cryptocurrencies.

This review of ApeCoin – APE was created for informational purposes. This article is not intended for promotion.

General info about ApeCoin – APE

ApeCoin was created by ApeCoin’s decentralized autonomous organization – DAOinitiated by Yuga Labs, creator of The Bored Ape Yacht Club. BAYC was launched in April 2021, but the APE token was created almost one year later, in March 2022.

The ApeCoin Protocol does not share a roadmap but its intention is to increase adoption of APE tokens in gaming and entertainment applications. Most notable would be the development of the BAYC video game which we will cover in the Use Case section of this report.

Whitepaper

No whitepaper on how the ApeCoin’s protocol works can be found on the official website.

Tokenomics 

  • Circulating Supply: 277.500.000
  • Total Supply: 1.000.000.000
  • Max Supply: 1.000.000.000

What is the ApeCoin – APE Airdrop?

The airdrop is a part of the token distribution, where million dollars worth of APE tokens were granted into the accounts of Bored Ape Yacht Club Members as a reward for buying and holding BAYC NFT’s. 

According to Bloomberg, from the total of APE tokens that have been airdropped:

  • 15% goes to BAYC NFT holders 
  • 15% goes to Yuga Labs, creator of BAYC 
  • 8% goes to the Yuga Labs Founders
  • 14% goes to launch partners
  • 47% goes to the ApeCoin DAO

 

Is ApeCoin’s DAO truly decentralized?

A closer look at the distribution of APE token airdrops might pose questions about the decentralized structure of ApeCoin’s DAO.

Given the fact that only 15% of airdrops are allocated to NFT holders, while 15% goes to Yuga Labs, plus another 8% to Yuga Labs founders and 47% to the ApeCoin DAO, would hint at a more centralized and greedy infrastructure.

As a result of this distribution, more APE tokens are allocated to ApeCoin affiliates, meaning they would have more voting power on future decisions and development than investors.

Use case of ApeCoin – APE

ApeCoin – APE is an Ethereum based token that can be used for making transactions, ranging from real life payments to in-game purchases within ApeCoin compatible web3 applications.

Firstly, APE is a governance token, meaning APE token holders can vote on future developments of the DAO, where it uses blockchain technology to enable voting and keep record of all the votes. Voting and decisions can vary from the way of managing the BAYC to Yuga Labs’ part in the developments. The more tokens you hold, the more voting power you have.

E11EVEN Hotel & Residences has supposedly bought the Bored Ape #11 NFT for 99 ETH, good for $396,000.

E11EVEN Miami announced that it would accept cryptocurrency as a payment for purchasing condo units.


nWayPlay, an NFT marketplace mentioned that the BAYC game will adopt APE tokens. It revealed an image as a teaser to the Play to Earn game they are developing with BAYC that can be seen above.
Animoca Brands, a video game software company that is known to be heavily involved in blockchain games, has announced that: Benji Bananas will be adopting APE tokens.

Benji Bananas is a Free to Play game that has been downloaded over 50M times on Google Play. A partnership with Bored Ape Yacht Club will be launced, to develop and publish the official BAYC game that will run on the blockchain.

The BAYC game is expected to release in Q2 of 2022 and will feature Play-to-Earn mechanics, meaning players will be able to earn tokens as they play, most likely APE tokens.

Can you claim ApeCoin – APE for free?

APE tokens can only be claimed for free if you own one of the limited BAYC NFT’s and decide to just hold on to it. In total, there are 150M claimable APE tokens. 

Where to buy and sell ApeCoin – APE?

What do we think about ApeCoin – APE?

ApeCoin’s success is obviously thanks to the BAYC NFT collection that made headlines in 2021. ApeCoin offers high rewards to holders of Bored Apes. 

There is still a lot of speculation about the future of the project but a BAYC game is being developed as we speak. It is most likely that APE tokens will be used as a currency in the game which might increase the circulation and demand for APE and therefore rise in value.

APE tokens holders have the possibility to vote on the future of the project. Owning more tokens means you have more voting power on future developments. However, looking at APE’s airdrops distribution, the regular investor will draw the short end of the stick.

ApeCoin – APE conclusion

ApeCoin is currently listed on some of the most popular exchanges, like Coinbase and Binance making it available to investors worldwide. Also Animoca Brands will be developing the Bored Ape Yacht Club game and Benji Bananas, a game that has been downloaded over 50M times on Google Play. We will see what the future holds for the ApeCoin – APE and all its fellow apes. 

 

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