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What is ApeCoin (APE) cryptocurrency? Forklog explains


The main thing

  • APE is one of the largest NFT ecosystems, with notable collections of non-fungible tokens including the Bored Ape Yacht Club (BAYC) and the Otherside metaverse.
  • ApeCoin (APE) is the native ecosystem token. Released on the Ethereum blockchain.
  • The main developer of APE is the American company Yuga Labs.

How the APE Ecosystem Came to Be

The history of the project began with an NFT collection called Bored Ape Yacht Club (BAYC), released in the spring of 2021. The BAYC founding team called itself Yuga Labs, and its members remained anonymous from the start. Only their nicknames were listed on the project website: Gargamel, Gorgon Goner Emperor, Tomato Ketchup and No Sass.

The collection was released on the Ethereum network, and it was a huge success: all 10,000 monkey tokens were sold in just 12 hours. After that, BAYC’s fame and the price of the collection’s digital items only grew.

The names of some of the founders became known only in the winter of 2022. According to a Buzzfeed investigation, US resident Greg Solano was hiding under the nickname Gargamel, and Gorgon Goner Emperor was his friend, Wiley Aronov. Both in an interview with the publication called themselves “literary geeks.”

Solano and Aronov, in their own words, came up with the concept and even the plot of the collection. Outside is 2031. Everyone who managed to invest in cryptocurrency at the very beginning of the crypto industry has become very rich, and they are just bored. In the future, they spend time in some kind of atmospheric yacht club, where everyone can create a digital identity in the NFT format to be that “relaxed monkey”.

BAYC’s main designer is an author known online as All Seeing Seneca. He created the main features of the images: eyes, smile, chin. The remaining fragments were completed, loaded into the algorithm, and then 10,000 unique, albeit similar, images were generated.

The names of Tomato Ketchup and No Sass have not yet been revealed. They were invited to the project last, as developers, and later made co-founders.

After initial success, BAYC’s images have become a pop cultural icon. Since then, Yuga Labs has created two more NFT collections, and in 2022 raised significant investment, launched the ApeCoin token, and launched the Otherside metaverse.

How much are Bored Monkey NFTs worth?

The first “monkeys” could be bought for the equivalent of only $190 in ETH coins, but almost immediately after the minting, token prices began to rise. BAYC has attracted the attention of celebrities and even big brands. This greatly influenced the popularity and, as a result, the cost of NFTs.

For example, in October 2021, a token from the collection was sold for $2.7 million, and just a month later, another image from BAYC was bought for $1.4 million.

If in September 2021 one “monkey” cost about 25 ETH ($60,000), by January 2022 the price had increased to 84 ETH ($200,000), and the entire Bored Ape Yacht Club collection was then valued at $1 billion.

At the end of April 2022, the minimum price of one NFT BAYC exceeded $400,000.

Why are BAYC so expensive?

There are at least three reasons that can explain the high price of monkeys.

Recognition among wealthy investors

NFTs were quickly buying up celebrities and brands. Tokens have a high value in the art business environment. For example, in September 2021, over 100 BAYC NFTs were sold at Sotheby’s for a total of over $24 million. Celebrities are actively investing in BAYC.

cult status

The image of the “bored monkey” has become widespread and has spread throughout the crypto industry. Many users still use images from the collection as their social media avatars.

Utility

NFT owners get access to a kind of “closed club”. Yuga Labs organizes various events for token holders, including business lunches and music concerts. According to the stories of some owners, they are also given access to special chat rooms in which wealthy investors communicate and share valuable information with each other.

Which celebrity owns NFT BAYC?

There are a lot of transactions with “monkeys” in which famous artists and show business figures acted as buyers:

It is known that rapper Wiz Knalifa, producer Timbaland, singer and model Paris Hilton, host Jimmy Fallon and other celebrities are also (or were previously) NFT holders of “bored monkeys”.

What is the Otherside Metaverse?

In March 2022, Yuga Labs announced a metaverse called Otherside and released a native token for their ecosystem called ApeCoin (APE). At the same time, the developers presented a teaser of the project.

Later, plots of virtual land in Otherside were put up for sale – each of them was sold for 305 APE. However, there is no detailed information about what functions and capabilities users of the metaverse will have.

Yuga Labs plans to introduce tools for developers in the near future, which will include tools for creating mini-games, as well as NFTs and their elements. All this should fill the content of Otherside.

In addition, Yuga Labs partner with Animoca Brands, which develops another well-known metaverse, The Sandbox. It is possible that the two digital worlds and their NFTs will be compatible with each other.

What is the ApeCoin (APE) token for?

ApeCoin (APE) is an ecosystem governance token that can be used for various operations in the Otherside metaverse. APE emission is limited to 1 billion tokens.

Part of the emission of the APE token was distributed using an airdrop. Immediately after the release, its price began to rise rapidly, but fell immediately by 30% after the start of sales of “digital land” in Otherside. The reason given was the mass negativity of users dissatisfied with the Ethereum overload due to the hype around Otherside. After that, Yuga Labs promised to transfer the APE ecosystem to its own blockchain.

ApeCoin is conceived as the currency of Otherside, which can be used to trade not only land, but also any digital items of the metaverse.

In addition, ApeCoin already gives the right to participate in DAO voting. So APE holders can participate in the development of the project and influence the distribution of funds by the ecosystem fund, as well as change the rules, control partnerships, and the like.

Also, with the help of ApeCoin, they finance the APE Foundation, which is responsible for executing the decisions of a decentralized organization. Its work is coordinated by a special council of five participants, who are changed every six months by voting with project tokens.

The original membership of the APE Foundation included:

  • Reddit co-founder Alex Ohanian;
  • Amy Wu, head of the venture division of FTX;
  • Director of Sound Ventures Maaria Bajwa;
  • co-founder and chairman of Animoca Brands, Yat Siu;
  • Dean Steinbeck, president of Horizon Labs.

At the beginning of May 2022, the ApeCoin DAO approved three proposals at once.

Dogecoin co-founder Billy Markus criticized the creators of the APE ecosystem. According to him, such tokens are quickly gaining popularity, but they are also depreciating just as quickly, which causes wrong associations.

“Sorry, I’m not a fan of ApeCoin, mainly because I think it hurts the NFT segment. Token communities tend to be hypertoxic and reckless,” he wrote.

What other NFT collections are included in the APE ecosystem?

In addition to BAYC, Yuga Labs has released two more collections of non-fungible tokens:

  • Mutant Ape Yacht Club – a collection of 20,000 NFT “mutated apes”. Initially, all owners of BAYC tokens received 10,000 “serums” with which they created unique “mutants”.
  • Bored Ape Kennel Club – tokens with images of “dogs” that all BAYC holders received by paying only the minting fee.

In addition, in March 2022, Yuga Labs acquired the rights to other well-known NFT collections – CryptoPunks and Meebits.

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My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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