What is ApeCoin?


APE

ApeCoin

Symbol: APE

Published: 2022

Max supply: 1 billion

Divisibility: 18 decimals

Official website: https://www.apecoin.com

ApeCoin (APE) is the official native currency of the APE ecosystem, released in March 2022. Technically, ApeCoin is an ERC-20 token operating on the Ethereum network. Behind ApeCoin is a company called Yuga Labs, which is known as one of the most important players in the Web3 and NFT markets. NFT (Non-Fungible token) refers to a unique digital asset brought onto the blockchain, the ownership of which can be verified quickly and reliably thanks to blockchain technology.

Yuga Labs owns the NFT collections CryptoPunks and Bored Ape Yacht Club, which are among the most well-known brands in the NFT market. Bored Ape Yacht Club also played a central role in the launch of ApeCoin. Anyone who owned an NFT from Bored Ape Yacht Club collections at the launch date of ApeCoin received a predefined amount of ApeCoin for free. Something about Yuga Labs' great influence in the cryptocurrency market is the fact that ApeCoin was simultaneously listed on every major cryptocurrency trading service in the world upon its launch.

APE ecosystem

The most important piece of the APE ecosystem is an organization called APE DAO, whose governance token is ApeCoin. Decentralized Autonomous organization (DAO) refers to a decentralized autonomous organization where cryptocurrency gives the right to vote in the organization's decisions. The APE Foundation is responsible for the practical work of APE DAO, whose main task is to implement the decisions made by APE DAO in practice. The Ape Foundation consists of several well-known individuals who have worked in the cryptocurrency industry for years, and thanks to their knowledge, the Ape Foundation is able to offer significant added value to cryptocurrency projects.

ApeCoin owners can directly influence the direction in which the APE ecosystem is developed. In practice, the influence takes place through the APE DAO, where each ApeCoin can be considered as one ballot. Investors should know that even though Yuga Labs is the company that launched ApeCoin, it is not actually responsible for running the APE DAO or the Ape Foundation. Yuga Labs owns 15 percent of all issued ApeCoins, so its voting power in decisions concerning APE DAO is nevertheless significant.

ApeCoin's uses are not limited to acting as a governance token for the APE ecosystem. ApeCoin will be the backbone of every innovation developed by APE DAO. Whatever APE DAO decides to develop, ApeCoin will play a key role in that. Yuga Labs has also announced that ApeCoin will be the main means of payment in every product and service it releases in the future.

One of Yuga Labs' most anticipated upcoming releases is a metaverse called Otherside. The concept of Metaverse refers to virtual worlds and spaces where it is possible to travel and do different things together with other people. The potential of Metaverse has been talked about for a long time, and the world's largest technology companies are currently investigating the possibilities that Metaverse could offer. A good example of this is the technology giant Facebook, which even changed its name to Meta.

Otherside is undeniably one of the most talked about projects in the cryptocurrency world, and it has real possibilities to challenge the metaverse projects Decentraland and The Sandbox, which have dominated the market for a long time. Otherside's strengths can be considered its close relationship with the most well-known NFT collections on the market, as well as the almost unlimited resources of Yuga Labs, which is responsible for Otherside's development work.

Purposes of ApeCoin

ApeCoin's main purpose of use is to act as a governance token for APE DAO. In addition to this, through the APE DAO, ApeCoin is supposed to facilitate the creation of Web3 applications on the Ethereum network. In practice, Web3 refers to the latest development step of the internet, where applications are built on open, public-source blockchains that eliminate the need for third parties. APE DAO members, i.e. entities that actually own ApeCoin, can propose their own application ideas to the DAO. If the DAO, i.e. the investors who own ApeCoin, vote in favor of this idea, APE Foundation takes it from theory to practice with the resources provided by the Ape Foundation. If APE DAO's visions come true, ApeCoin will be one of the most central pillars of the future internet, i.e. Web3.

ApeCoin will also play a central role in Yuga Labs' upcoming Otherside metaverse. ApeCoin is Otherside's official currency and will be Otherside's primary medium of exchange. If Otherside becomes popular and people find it, it will naturally also affect the demand of ApeCoin. Otherside will certainly not be Yuga Labs' last release, and in the future ApeCoin will be seen as part of Yuga Labs' new products and services. Since Yuga Labs has announced that ApeCoin will be the main means of payment in its future products and services, as the ecosystem grows, the uses for ApeCoin and thus the demand will also grow.

ApeCoin as an investment

The value of ApeCoin depends on the success of APE DAO. APE DAO's activities are focused around Web3 and decentralized applications. Web3 is developing rapidly and has attracted a large amount of capital and expertise worldwide. Decentralized blockchains are at the core of Web3. The world's most popular decentralized blockchain is Ethereum, which also acts as a platform for ApeCoin.

Unlike Web2, which is based on traditional economic operators, Web3 operates on the basis of cryptocurrencies and decentralized operators. Yuga Labs and its NFT collection Bored Ape Yacht Club are arguably the best-known brands on Web3 right now. Something about the market power of these brands is said by the fact that they have managed to remain very relevant even through the 2022 bear market, when many other projects have sunk into oblivion. APE DAO also has every chance to become one of the driving forces of Web3, capable of bringing new and innovative applications to the market, with ApeCoin at the center of its operations. The success of ApeCoin therefore strongly depends on the growth of Web3's popularity and the success of APE DAO.

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