The financial market is a dynamic environment that goes through ups and downs in cycles. The…
Ape. When we hear this word, we immediately imagine these big creatures in jungles swinging down from the trees.
So, how did this term become integrated in the world of cryptocurrencies such as other crypto slang terms? It relates to the existence of non-fungible tokens (NFTs).
This blog post will try to simplify the idea of ape, aping and the extent of its influence in the cryptocurrency space.
Ape and Aping Explained
Apes or aping is a crypto slang term that means buying a new coin. People use the term aping when asking someone what new crypto coin or crypto token they want to buy. However, aping also has a negative connotation as it can mean someone who rushes to buy a newly-launched coin or token without properly researching it.
Recently, it relates to one of the most famous non-fungible token (NFT) collections, the Bored Ape Yacht Club (BAYC). Bored Ape Yacht Club is a compilation of ten thousand cartoon images of apes. A day after its release, it instantly sold out and their prices continuously increased due to high demand.
This NFT Project ushered in the term Aping. It first started as an unrecognized NFT. But with the hype that it caused, many investors suddenly became afraid that they would miss it in owning one of these digital images. Moreover, they might lose their chances to make a high profit in the future.
When people start feeling FOMO, they forget due diligence and just go all in on a new digital currency or crypto project. This behavior earned the name ‘aping’.
Bored Ape Yacht Club Origin
Yugalabs invented the Bored Ape NFT. They introduced the Bored Ape Yacht Club (BAYC) in April 2021 when the crypto market was still at the peak of its bullish condition. There are four people behind this NFT project but they used nicknames.
There are four founders of Yuga Labs. The co-founders called themselves Gordon Goner and Gargamel, while No Sass and Emperor Tomato Ketchup were responsible for the technical details behind Bored Ape Yacht Club. However, when Buzzfeed did an exposé in February 2022 about the co-founder’s true identities, the other members had no choice but to reveal themselves as well.
There are several projects under the APE ecosystem. First, we have the Ethereum blockchain-based Bored Ape Yacht Club. Next, is the Mutant Ape Yacht Club (MAYC) which showcases 20,000 mutated versions of the BAYC. Lastly, we have the Bored Ape Kennel Club NFTs, an image collection of 9,602 cartoon dogs.
What is Apecoin?
An Apecoin is the native token of all the NFT projects that Yugalabs invented, otherwise known as Ape Ecosystem. It is mainly a utility and governance token. Apecoin is Ethereum-based, and the Apecoin DAO governs it. The investors who hold Apecoins qualify to be members of the Apecoin DAO.
The token holders can vote about aspects of governance in the DAO community like the direction of the network’s growth, allocation of funds, implementation of rules, and what partnerships they think are worth it.
Tokenomics of Apecoin
Apecoin will only have a fixed total supply of 1 Billion APE tokens. Furthermore, the APE tokens cannot be burned or minted. As a result, its circulating Apecoins will be steady.
During the March 2022 launch, the developers distributed its biggest share of token supply, 620 million tokens. Of that amount, 150 million was given to the NFT holders of BAYC and 470 million became part of its DAO treasury.
Part of its tokenomics is a percentage donation to the Jane Goodall Legacy Foundation. Additionally, 10% of it will go to the people who helped contribute to the development of Apecoin. Lastly, 8% is deposited as locked tokens. Having locked tokens prevents the developers from liquidating their assets.
Aside from being a governance and utility token, third-party developers can also integrate it into their games and services as an incentive. For example, the play-to-earn mobile game, Benji Bananas, uses APE as a reward.
Benji Bananas issues a membership pass to their players. In turn, it allows them to earn special tokens while playing the mobile game. Later on, the token holders can trade their special tokens for Apecoins.
For the most part, Apecoin was able to surpass being just a memecoin. Its utility in the APE ecosystem has given it a role in the progress of the Apecoin DAO.
Apecoin can act as a form of payment, a NFT reward, or give access to the special features of the ecosystem. These are just some of the reasons why it has the potential to be a good long term investment.
Although, you need to be careful of aping in crypto exchanges and choose wisely before you invest in a crypto project similar to the Bored Ape Yacht Club (BAYC).