Without any iota of doubt, the launching of ApeCoin by an independent entity of Yuga Labs, identified as ApeCoin DAO has provided crypto investors with one of the lucrative alternatives to consider when making investment decisions. Ever since the 2017 crypto boom, thousands of different tokens have continued to greet the industry.
Till date, the industry, occasioned by its consistent growth and expansion enjoys a substantial level of adoption and patronage. Since investors are surrounded by many cryptocurrency alternatives, it is incumbent on them to look before leaping. This simply means that they need to understand and evaluate the gains and risks associated with any of those cryptocurrencies before investing or patronizing them.
Just as it is obtainable in other investment industries, all individual crypto projects possess risks. This cement the fact that investors can only be on a lookout for crypto possessing minimal risk and more gains. Achieving this, however, requires them to get acquitted with information capable of informing their decisions or choices. Without further ado, the article seeks to build on this need by educating potential and existing investors about Ape token, its functionalities, and the gains enjoyed by its holders.
Founded in March 2022, ApeCoin manifested as an Ethereum-native ERC-20 token, adopted as the native currency of Bored Ape Yacht Club (BAYC). This club was developed and unveiled by Yuga Labs in 2021 and possessed 10,000 unique bored Apes residing on Ethereum. As earlier noted, the ApeCoin DAO, an independent entity of Yuga labs, grossly developed and launched the ApeCoin.
ApeCoin DAO & Foundation
Furthermore, the ApeCoin DAO functions as a governing platform, housing all holders of the crypto. The platform allows for community engagements and contributions to decisions relating to the ecosystem. The holders take governance decisions together. This thus enables them to determine decisions on funds distribution, partnership, rules, and many more.
As structured, a distinct entity, identified as Apecoin Foundation usually manages the daily affairs of the community platform. As a matter of fact, the foundation oversees and executes every proposal supported by the members of the community through voting. The Apecoin foundation functions as a committee with individual members. As of now, the current members include, Yat Siu, Animoca CEO, Alexis Ohanian, co-founder of Reddit, and a host of others. As hinted on the website of the crypto, the developers intend to allow community members to determine the next members of the foundation committee.
ApeCoin, unlike NFTs, appears fungible as all the Ape possesses the same value as each other. More so, just like other cryptocurrencies, its holders are eligible to trade the tokens on any decentralized exchange. Just within a day of going live, the crypto recorded a market cap of about $2 billion. As of now, the value of Apecoin stands at $5.79 USD, with a 24-hour trading volume of $191,784,433 USD, according to coinmarketcap.
Is investing in the token a wise decision?
The question as to whether the Ape token appears to be a wise investment for crypto investors is highly debatable. It solely depends on the utmost priorities of the potential investors. As of now, ApeCoin mostly runs for speculation, gaming and governance purposes. A member of the Ape Foundation and Animoca CEO, Yat Siu aided the adoption of the token in Benji Bananas, a game developed by Animoca Brands.
For instance, gamers secure membership passes of the game with the token and also rake in Apecoin rewards for playing. More so, holders currently use the tokens to make payments owing to their acceptance by some dealers. Investors looking for lucrative short-term gains may avoid ApeCoin for now but the token possesses a remarkable future. In no distant time, the token tends to become hugely adopted in virtual lands, entertainment, and art industries.
The above appears feasible owing to the efforts by Yuga in creating an enabling ground for the token to thrive. For instance, the protocol established ecosystem funding to aid projects using the tokens. This thus paves the way and makes it easier for developers to incorporate the tokens into their respective crypto projects. As the established ecosystem grows, the token reacts by appreciating in value.
In an overall remark, investors who intend to make future money only should embrace apecoin. Several analyses have, over time predicted a big boom for the token in a few years to come. For instance, a popular research outlet, Analytic Insight predicted a $430 increase in the value of the token by 2025. Apart from being a wise future investment, purchasing the token at this moment remains very cost-effective and cheap. However, before taking any decision to subscribe to Apecoin or not, remember to evaluate your priorities.