What is Apcoin? Why has its value increased by more than 50 percent in a week?

Bored Ape Yacht Club (BAYC) is one of the most prominent collections of non-fungible tokens (NFTs) in the world. A chain of 10,000 blockchain-based cartoon primates worth around $3 billion (about Rs 22,855 crore) at today’s prices has become ubiquitous on the Internet. Last week, people associated with Board Apk Yacht Club launched a cryptocurrency called Apcoin. The pitch to investors was vague: support for projects involving bored apes and “community-led initiatives that advance culture in the metaverse”.

It’s been a little over a week since that and despite a slow start on the debut day, the value of Apcoin has increased with week-to-date profits. more than 58 percent at the time of writing.

There is currently no real use case for apcoinDespite its utterly weak market cap of $13.6 billion (approximately Rs 1,03,640 crore), and it is unclear what its future use will be. Yug Labswho developed Bored Ape Yacht Clubwas allocated a portion of the AppCoin token, but it is not an Epoch Lab token and is not officially affiliated with the company.

What is Apcoin and who is its founder?

ApeCoin is an ERC-20 regime and utility token of Bored Ape Yacht Club or BAYC, but as mentioned, the coin was not created by Era Labs, developers of BAYC. Instead, it was created by the ApeCoin DAO.

ApeCoin DAO empowers its community to design blockchain games and services as well as create physical and virtual goods. The organization is managed by the Apcoin Foundation. While some think that Yuga Labs’ decision to separate itself from AppCoin is a step towards decentralization, others think that Yuga Labs is trying to avoid regulatory backlash from the SEC.

The ApeCoin DAO is led by a council consisting of Alexis Ohanian (Reddit), Amy Wu (FTX), Maria Bajwa (Sound Ventures), Yat Sui (Animoca Brands) and Dean Steinbeck (Horizon Labs).

Although the token and the DAO are not directly linked to Era Labs and its Bored App Yacht Club (BAYC), the two are linked, which is why holders of the BAYC NFT receive the free Apcoin upon release of the cryptocurrency, and it serves as the main token. Will work for the BAYC ecosystem.

While the team behind Apcoin acknowledges that the token is primarily a meme coin, it is also attempting to build an ecosystem around the cryptocurrency. Services using the token include The Monkeyfirm NFT platform, a decentralized exchange, and the play-to-earn gaming project.

according to this Apcoin’s website“APE is a token designed to support what is forward, controlled and built by the community. It will act as a decentralized protocol layer for community-led initiatives that advance culture in the metaverse.”

How is Apcoin distributed?

In total, there are 1 billion ApeCoins. Of this number, 14 percent will go to “launch contributors,” 8 percent will go to BAYC’s founders, and 16 percent will go to Era Labs. BAYC and MAYC holders have also been allocated claims of 15 per cent of the total circulation, while the rest will be part of the DAO’s “Ecosystem Fund”.

According to a statement, token holders will be able to vote on all community decisions. All other specific decisions will be left to the DAO Council. Era Labs also noted that it will adopt Apcoin as its primary token for future products and services. While Animoca Brands’ blockchain game, Benji Bananas is also planning to implement the token in its architecture. The token also remains central to the Apnecoin DAO’s intention to trade both physical and virtual goods.

ApeCoin is available for trading on various global exchanges including Binance, Coinbase, KuCoin, Huobi, Kraken, Bybit and FTX. Since its launch, several Indian exchanges have also added the token to their list of tradables, including Giottus and CoinDCX.

Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.

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