What Is ApeCoin and Why Is Its Price Skyrocketing?

ApeCoin is an ERC-20 governance and utility token used within the APE Ecosystem to empower and incentivize a decentralized community building at the forefront of Web3. Holders of the token govern themselves via a decentralized governance framework controlling the ApeCoin DAO, and they vote on how the ApeCoin DAO ecosystem fund should be used.

The APE foundation administers proposals agreed upon by ApeCoin holders. Apecoin was launched on March 16, 2022, and rallied to an all-time high of $39 a day later as masses rushed to get a piece of the project. Though the price has shed 66% of its value and is currently trading at $13, it is still quite impressive for a token that is less than two weeks old and first launched at $1.

According to the team behind this project, ApeCoin is a token for culture, gaming, and commerce. If the name seems familiar, it is because the token is associated with the Bored Ape Yacht Club (BAYC) NFT collection, one of the most valuable NFT collections by market cap. BAYC by Yuga Labs quickly rose to fame after its launch in 2021, attracting the attention of celebrities such as Mark Cuban, Serena Williams, Paris Hilton, Eminem, Stephen Curry, and many others.

The Purpose of ApeCoin (APE)

In the project’s DAO, each token holder will have a stake in the organization’s development. A selection of Web3 veterans and gaming and technology thought leaders will serve as the DAO’s special council – responsible for overseeing the decisions of DAO members. The initial board is composed of Alexis Ohanian, co-founder of Reddit; Maaria Bahwa, Principal at Sound Ventures; Yat Siu, co-founder and chairman of Animoca Brands; and Dean Steinbeck, president and general counsel at Horizen Labs.

ApeCoin serves as the utility token for the APE ecosystem. This means token holders can purchase new products and services with the token, such as a play-to-earn game that BAYC and nWay are developing. Also, the token is accepted in the Benji Bananas game by Animoca Brands. During the launch, Alexis Ohanian had the following to say: “Today we’re making the ‘Club’ bigger with ApeCoin. Web3 is being integrated into our art, music, and culture more and more every day, and it all starts with community. I believe this community will build, expand, partner, and disrupt in a massive way.”

ApeCoin Token Utility

A unique feature of the ApeCoin DAO is a one-of-one NFT that features a blue version of the Bored Ape Yacht club logo. The NFT conveys along with it all rights and privileges of the logo’s intellectual property to the ApeCoin DAO, whose members can vote on how to use the intellectual property. According to Nicole Muniz, CEO of Yuga Labs, the APE community has wanted a token for a while now, and it is exciting to release one that can aid with community governance. He went on to add that Yuga Labs will continue to be “builders of products and experiences that bring new ideas and energy to the table.”

Yat Siu added that “Animoca Brands is excited to tap into the energy of the BAYC community and make APE purchases available right away in Benji Bananas Adventures. The gaming world is changing along with web3 innovation, and I’m thrilled to have a front-row seat and to help the community as a special council member of the ApeCoin DAO.”

As an ERC-20 token, APE can be used in four different ways: governance, unification of spend, access, and incentivization.

Governance: ApeCoin serves as the token of the ApeCoin DAO and allows the token holder to vote on governance decisions in the DAO.

Unification of spend: ApeCoin is the utility token of the APE ecosystem and can be used to purchase goods and services.

Access: the token will function as a gating token providing access to certain ecosystem parts such as events and exclusive games.

Incentivization: the token serves as a tool for third-party developers to participate in the ecosystem by incorporating APE into services, games, and other projects.

ApeCoin Tokenomics

APE has a total supply of 1 billion tokens, and the circulating supply stands at around 277,500,000 tokens at the time of writing. At the current price, this gives the token a market cap of $3.5 billion and a diluted market cap of $12.8 billion.