Bored Ape Yacht Club (BAYC) is perhaps the most acknowledged non-fungible token (NFT) collection in existence. This fanciful collection of apes has drawn significant attention from mainstream media outlets due to the hefty price tags attached to the pioneering NFT collection. ApeCoin (APE) is the utility and governance token of the APE ecosystem. This includes other NFT collections such as Mutant Ape Yacht Club (MAYC) and Bored Ape Kennel Club (BAKC). In addition, ApeCoin will incentivize the development and expansion of the APE product offering. The price action of ApeCoin has garnered a great deal of attention from investors in recent weeks. This makes it one of the most talked-about altcoin projects of the spring.
In this article, we’re going to dive deep into ApeCoin (APE), the primary unit of account and medium of exchange for Bored Ape Yacht Club (BAYC) members. Also, we’ll discuss one of the most groundbreaking NFT projects in existence. Furthermore, we’ll explore the recent ApeCoin price action. Plus, we’ll look at some of the use cases for ApeCoin and how it benefits the broader APE community.
If you’re new to the crypto space, you’ve come to the right place! Moralis Academy is the ultimate blockchain education platform online. Regardless of experience, we have the perfect courses to help you thrive in the world of Web3. Check out our Crypto for Beginners course to learn how to safely buy, sell, and trade crypto. This course teaches students about the core differences between Bitcoin, Ethereum, and altcoins. Join our community of over 30,000 students and start your crypto journey with Moralis Academy! In addition, save our “What is Bitcoin?”, “Blockchain Explained”, and “What is Crypto?” articles for later reading!
What are NFTs?
Non-fungible tokens (NFTs) have been one of the biggest drivers of crypto adoption for several years. Fungible assets such as USD, GBP, ETH, and BTC are interchangeable. For example, one BTC in your pocket is worth the same as one BTC in someone else’s. The same goes for all fungible assets.
However, non-fungible assets work slightly differently. For example, non-fungible tokens are unique representations of assets on the blockchain. Tokenizing almost any asset as an NFT that's represented on-chain is possible. Also, tokenizing assets as NFTs provides a transparent ownership history and can prevent counterfeiting. As you can imagine, this is particularly useful for digital collectibles and art.
NFTs are becoming commonplace in art, entertainment, crypto gaming, and music. Artists and creators can use NFTs to provide exclusive rare content for their audiences. Also, NFTs are revolutionizing healthcare, real estate, and supply chain management.
Bored Ape Yacht Club (BAYC)
Launched in April 2021, Bored Ape Yacht Club (BAYC) is perhaps the most recognized non-fungible token (NFT) collection. Further, BAYC has one of the most high-profile followings of any NFT project, with A-list celebrities and influencers rushing to join the club. The BAYC collection consists of 10,000 unique "Bored Ape" NFTs that live on the Ethereum blockchain as ERC-721 NFTs. Each BAYC NFT also extends as a membership card to the club. This gives holders access to exclusive member-only benefits and perks.
Furthermore, BAYC uses a fair and equitable distribution model. During the initial sale, each BAYC NFT cost 0.08 ETH, and there were no price tiers. Of the 10,000 Bored Ape NFTs, the team set aside 30 for community giveaways and competitions. Investors can find the most prominent secondary market for BAYC NFTs in the OpenSea NFT marketplace.
Each Bored Ape NFT boasts unique features from over 170 possible traits. This includes facial expressions, clothing, accessories, and more. Although the full utility of BAYC NFTs is still unclear, the BAYC team insists that these NFTs will “open digital doors” for holders. The most expensive Bored Ape NFT in existence is Bored Ape #2087. This NFT sold for 769 ETH, worth around $2.3 million at the time of purchase.
Exploring ApeCoin (APE)
ApeCoin (APE) is the utility and governance token of the APE ecosystem economy. Also, APE is a decentralized protocol layer and an ERC-20 token that aims to empower the APE community. Holders can vote on proposals to make changes to the ApeCoin ecosystem via the ApeCoin DAO (decentralized autonomous organization).
Also, APE holders can gain access to exclusive perks, including games and special events. In addition, APE will be the primary unit of account and medium of exchange for all products and services throughout the APE ecosystem. This includes Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFT series and intellectual property rights owner of the CryptoPunks NFT brand.
ApeCoin has a fixed supply of one billion tokens. No additional tokens can be minted after this cap is met. Also, the "token burning" model is something that ApeCoin will not use. Accordingly, the APE supply will not decrease.
The ApeCoin allocation will see 62% of APE tokens distributed to the ecosystem fund. Of this amount, BAYC and MAYC NFT holders received an airdrop of 150 million APE tokens. All of these tokens were made immediately available following the ApeCoin launch.
Furthermore, 470 million tokens were allocated to the ApeCoin DAO treasury. Of these tokens, 117.5 million were made immediately available, with a monthly distribution of 7.3 million per month after that.
Also, the company behind BAYC and ApeCoin, Yuga Labs, receives 16% of the total APE token supply. The company will receive 150 million tokens over 36 months after an initial lock-up of 36 months. In addition, Yuga Labs pledges a donation of ten million tokens from this allocation to the Jane Goodall Legacy Foundation charity.
Project contributors receive an allocation of 14% of the APE token supply that is vested for various durations. A total allocation of 140 million APE tokens will reimburse the contributors who helped launch the ApeCoin project. Also, founding members receive an 8% allocation. This includes 80 million APE tokens with an initial lock-up period of twelve months.
The APE token has a maximum supply of one billion, with a circulating supply of 227.5 million at the time of writing. According to CoinGecko, the ApeCoin price hit an all-time high of $17.17 on March 18th, 2022. The ApeCoin price surged by more than 100% from the all-time low of $6.21 just one day prior. At the time of writing, ApeCoin is trading at around $12.21 with a market cap of 3.3 billion.
However, several media outlets report that the ApeCoin price was significantly higher on numerous centralized exchanges. Some reports suggest that the ApeCoin price hit in excess of $200, while other reports suggest an all-time high of $40 moments after the airdrop. That said, the only significant trading volume on any centralized exchange during the minutes of the airdrop was on Binance.
Binance recorded an all-time high of around $28 for ApeCoin (APE). Nonetheless, the likelihood is that few traders, if any, were able to capitalize on the brief spike in the ApeCoin price in the few minutes following the listing on Binance. This is partly due to the high gas price for minting APE tokens and the short window of opportunity available for transferring them to Binance and selling them.
If you want to take your crypto trading game to the next level, check out the Technical Analysis 101 course at Moralis Academy. This course teaches students how to remove emotions from trades. Plus, we teach students how to develop trading strategies, read chart patterns, and use trading indicators to help them make informed decisions based on probability. Make the most out of every trade with Moralis Academy!
The ApeCoin DAO (decentralized autonomous organization) is the governing body of the APE ecosystem. It enables the APE community to shape the future direction of the ecosystem. All APE token holders can participate in protocol governance via the ApeCoin DAO. Also, the DAO is responsible for the allocation of funds to ecosystem projects, selecting partnerships, and making governance rules.
Every time the community wishes to implement a change to the ecosystem, they must vote on proposals to do so. Recent proposals include staking features and ecosystem fund allocation. At the time of writing, the ApeCoin DAO has around 3,100 members.
The APE Foundation
ApeCoin's APE Foundation serves as the legal steward of the ApeCoin DAO. The foundation is responsible for overseeing the growth of the APE ecosystem. Within ApeCoin's APE Foundation is a council known as "the board". The board consists of five high-profile tech moguls, including Reddit co-founder Alexis Ohanian, Animoca Brands' Yat Siu, and Dean Steinbeck of Horizen Labs. Also, the board ensures that the implementation of community proposals is set in place fairly and transparently. Members serve on the board for six months. Every year, members can vote for new board members.
The APE Ecosystem
The APE ecosystem comprises the ApeCoin community and every product and service using the APE token. One of the most prominent figures in the ecosystem is Yuga Labs, the Web3 company responsible for creating Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFTs. Also, Yuga Labs is a member of the ApeCoin DAO. BAYC and MAYC NFT holders received a combined 15% (150 million tokens) of the total ApeCoin supply.
Bored Ape Yacht Club (BAYC) is the flagship NFT series from the APE ecosystem. It comprises 10,000 unique images of apes, each with an individual aesthetic and rarity score. Following the success of BAYC, Yuga Labs released up to 20,000 mutant alternatives to the original Bored Ape collection. Each mutation is facilitated by a “serum”, of which there are three tiers.
Every original BAYC NFT holder received a serum enabling them to create variations of the original apes. Each serum grants individual rarity scores and traits. Plus, serums disappear after use. Along with the allocation of 10,000 MAYC serums, 10,000 additional serums were made available for public sale with the goal of expanding the APE community.
Furthermore, Yuga Labs released the Bored Ape Kennel Club (BAKC) NFT collection. The BAKC series is a collection of 10,000 unique dog NFTs that were made available for “adoption” to BAYC members. Furthermore, BAKC NFTs were free. Members only had to pay gas fees to redeem these NFTs.
Exploring ApeCoin (APE) - Summary
Bored Ape Yacht Club (BAYC) has been a catalyst for a wave of NFT and crypto adoption. The ApeCoin project aims to propel the APE community into the Web3 world by providing a common unit of exchange for the broader APE ecosystem. As one of the most successful and prominent NFT projects, BAYC NFTs have seen incredible price action in recent months. BAYC holders received an airdrop of ApeCoin (APE) tokens to thank them for their commitment to the APE ecosystem. The price action of ApeCoin has caused quite the frenzy for speculators in recent weeks. In the future, we can expect to see the APE token play an essential role in incentivizing third-party development throughout the APE ecosystem.
The Bored Ape Yacht Club NFT collection is reimagining modern art. The NFT asset class attracts a wave of crypto enthusiasts to it. Accordingly, ApeCoin aims to capitalize on this trend and provide a financial tool to help expand the community. In addition, the APE ecosystem offers a range of tools and services to assist NFT developers in creating exciting new offerings under the APE umbrella.
Also, see our “DeFi Explained” and “How to Invest in Crypto” articles to further expand your Web3 and blockchain knowledge. Kickstart your blockchain education today and become blockchain certified with Moralis Academy!