Learn more about how ApeCoin evolved from the biggest NFT project in the world Bored Ape Yacht Club in our “What Is ApeCoin?” guide? COVERED: What is ApeCoin? Who Created It? How It Works? What is APE? Concerns What is ApeCoin? Ever since its launch in April of 2021, The Board Ape Yacht Club or […] The post What is ApeCoin? appeared first on CryptosRus.

What is ApeCoin?

Learn more about how ApeCoin evolved from the biggest NFT project in the world Bored Ape Yacht Club in our “What Is ApeCoin?” guide?

COVERED:

  • What is ApeCoin?
  • Who Created It?
  • How It Works?
  • What is APE?
  • Concerns

What is ApeCoin?

Ever since its launch in April of 2021, The Board Ape Yacht Club or BAYC for short, has taken the crypto world by storm. In less than a year it has surpassed CryptoPunks to become the most popular and valuable NFT project in the world. Initially being minted at 0.08 ETH apiece, it is now being traded for well over 90 ETH per NFT. The project has gained massive popularity due to its vibrant community, as well as a clear long-term roadmap that includes massive benefits for the holders of their NFTs. The most excitement however was generated by the announcement of a native token for the project. This token named ApeCoin was launched in March 2022.

ApeCoin is the native cryptocurrency of the APE ecosystem. In addition to being the governance and utility token of the ecosystem, it was also meant to be used as a reward for the holders of the NFTs of the project. ApeCoin intends to offer many more functionalities and plans to integrate it into a host of games and services. Recently, crypto game maker Animoca Brands and developer nWay have announced to use ApeCoin in their upcoming projects.

Who Created It?

Yuga Labs is the company behind BAYC, and it is the brainchild of two friends Gargamel and Gordon Goner. Both of these names are pseudonyms, and the real names of these two were revealed in a February 2022 article by Buzzfeed. The real names of these founders are Greg Solano and Wylie Aronow. Although Yuga Labs is the creator of BAYC, and its corresponding ecosystem, officially it is not the creator of ApeCoin.

ApeCoin is the creation of the ApeCoin DAO, which is a decentralized autonomous organization tasked with the governance of the token, along with ensuring progress on the roadmap. All holders of ApeCoin have the privilege of voting on decisions regarding the future of the platform. This includes decisions regarding the allocation of ecosystem funds, selection of projects and partnerships, etc. The ApeCoin DAO has managed to enlist several high-profile names into its ranks. These include the likes of Alexis Ohanian, who is a co-founder of Reddit, and Amy Wu from FTX.

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How it Works?

ApeCoin was created to cater to the needs of an exponentially growing ecosystem. The popularity of BAYC took many by storm, and its subsequent toppling of CryptoPunks as the largest NFT project in the world showed the immense potential of the project. ApeCoin was created and is managed by the ApeCoin DAO. The DAO allows all holders of ApeCoin to participate in the development of the project, and decide its future course.

The legal steward or the entity that implements the decisions made by the DAO is known as the ApeCoin Foundation. The Foundation is tasked with carrying out the collective decisions that are made by the community through voting in the DAO. A special council exists within the Foundation, which is known as the Board. The Board consists of 5 members from the crypto and tech space. The most high-profile name among the current board members is Alexis Ohanian, who is the co-founder of Reddit. The initial 5-person board will serve for 6 months after which the community will vote and elect a new board which shall serve for a term of 1 year.

As mentioned earlier, ApeCoin was created specifically to address the needs of a growing ecosystem. The APE ecosystem consists of all products and services offered by Yuga Labs. Yuga Labs is primarily known as the company behind BAYC, however other projects such as Mutant Ape Yacht Club (MAYC) and Bored Ape Kennel Club (BAKC) also fall under its umbrella. APE is to be used as the primary cryptocurrency across all of these projects. As such, 15% of all APE tokens which amounts to nearly 150 million tokens were earmarked for the holders of BAYC, MAYC, and BAKC NFT holders. Recently Yuga Labs have also acquired CryptoPunks, and Meebits, which further adds to the utility of ApeCoin.

What is APE?

APE is the native cryptocurrency of the ApeCoin DAO. It is the governance and utility token of the whole ecosystem. APE is an ERC-20 token having a total supply of exactly 1 billion tokens. This means that it’s a deflationary currency, and no further tokens will be minted, unless the DAO decides otherwise. In addition to being the primary token of the APE ecosystem, it is also the token adopted by Yuga Labs for all of its products and services. Holders of APE are entitled to special privileges within the ecosystem, which include voting on proposals regarding the development of the project, as well as access to the exclusive features of the ecosystem. APE can also be used by developers, who can integrate it within their own projects. Animoca Brands, have already achieved this by integrating APE into their play-to-earn mobile game named Benji Bananas.

Concerns

ApeCoin is a project that has been created around a rising trend and a growing ecosystem. The biggest concern that arises out of this is the fact that in this day and age, trends change with each passing day. What is cool today, may not be so cool tomorrow. Therefore there is potentially a high risk that people may stop being interested in projects like BAYC, MAYC, etc. Yuga Labs has therefore taken the right step by acquiring rival NFT projects CryptoPunks and Meebits. However, with each passing day, new NFT projects are being launched. The NFT space is growing exponentially, and the only way for ApeCoin to thrive is to integrate itself across multiple platforms and projects, thus increasing its utility.

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