ApeCoin is the new kid on the block with enormous popularity on Coinbase (NASDAQ: COIN) and other high-profile crypto exchanges. Its popularity goes beyond the growth potential; there is free money on the give and a complex web of ownership. The Ethereum ERC token is associated with the Bored Ape Yacht Club NFTs.

The performance of bored apes-depicting NFTs shook the market after fetching premium prices averaging from $300000 to over $2 million for high-end versions. While they are not a reserve for the rich, the NFT holders consist of celebrities and high-profile athletes. Yes, Stephen Curry and Justin Bieber are among BAYC NFT owners.

Currently, ApeCoin is listed on Coinbase as an experimental asset. The crypto is listed as a trading pair available on all Coinbase regions except Japan.

What Exactly is ApeCoin

According to the coin’s website, ApeCoin is a decentralized protocol layer that drives cultures to metaverse through community initiatives. It has a maximum supply of a billion tokens. 

A day after it was listed on crypto exchanges, the market cap hit $2 billion. The prices rose to a high of $27.5 on 28th April.  However, the value has dipped to $6, but it’s still among the most popular crypto on Reddit and Twitter, according to the Lunar Crash site. Two major prediction sites – CoinCodex and CryptoPredictions have currently different forecasts for the coin. While Coincodex’s ApeCoin predictions are bearish expecting the coin to decrease in value in the near future, CryptoPredictions forecasts for ApeCoin to go up to roughly 9 USD by the end of the year and to double its value in 2023.

Ownership: Who Is Behind ApeCoin Development?

You will want to pay attention here. The official communication is that ApeCoin is owned by a decentralized autonomous organization (DAO) which is, in turn, governed by the token holders. This means that APE holders automatically become APE DAO members. The DAO makes proposals that the members can vote on. 

Now, a separate organization, Ape Foundation, runs the daily activities of DAO, including administration and proposal management. The Foundation subcommittee consists of top crypto investors who double up as the foundation board.

The pioneer board members include:

• Alexiz Ohanian – Reddit co-founder
• Maaria Bajwa – Sound Ventures 
• Dean Steinbeck -Horizen Labs 
• Amy Wu – FXT Ventures leader
• Yat Siu Animoca Brand

Cartan Group also appears in the matrix. The Cayman-based consultant group will offer services for six months earning $150000 monthly. 

Despite the presence of all these separate groups, one thing is certain. The investors didn’t birth ApeCoin. The final piece in the puzzle is the Delaware-based Yuga Labs which put everything together, including managing acquisitions and major projects. 

Yuga Labs are behind the intellectual ownership of the Bored Apes NFT. However, they have made concerted efforts to ensure ApeCoin is dissociated from any conventional corporation. Suffice it to say they have denied owning the crypto. The company has raised $450 million in venture capital to boost the ApeCoin project.

Token Distribution 

Another peculiar thing is the distribution of the token. 62% of the Apecoins will go to DAO treasury and coin holders. Investors holding Bored Yacht Club, Bored Ape Kennel Club, and Mutant Ape Yacht Club NFTs can claim some coins within 90 days. 

For each BAYC token, the holders will get 10094 APE translating to over $60000.  The company used the blockchain to deposit “free” money into Bored Apes buyers. You simply wake up and find APE Coins sitting pretty in your account. 

The remaining 38% will be divided among initial contributors, including Yuga labs. Out of the 150 million tokens, the company will give 10 million APE to Jane Goodall Legacy Foundation promotes jungle primate conservation efforts.

Yuga Lab will divide the remaining 140 million tokens to an undefined group of companies and people who saw the fruition of the projects. Yuga founders will receive 80 million tokens.

Token Allocation Breakdown 

Here is a breakdown of the ApeCoin token allocation. 

• 62% will go to the DAO community. 15% of these tokens will go to the BAYC NFT holders. The investors can claim 10094 $APE for each NFT, while MAYC holders can claim 2042 APE Coins. The rest will be channeled to the ecosystem fund of the DAO.
• Yuga labs will take 16% and send a portion to primatologist Jane Goodall Foundation. 
• 14%  will go to people who contributed to the project’s launch.
• 8% will be divided among four Yuga Labs and BAYC founders

The coins will be locked for a year to prevent the holder from cashing out, causing the crypto to crash.

ApeCoin Utility 

Perhaps the major arising question is the Apecoin utility. Here are ApeCoin utilities.

In-Game Currency 

Yuga labs plan to make ApeCoin its native currency for all new projects. Benji bananas mobile game is already adopting Ape Coin as the in-game currency. The coin’s utility is expected to evolve as use cases go beyond  BAYC.

Governance Token 

As an Apecoin DA governance token, it will enable the holders to determine fund allocation on future projects.

Metaverse and Web 3 

The success of bored apes prompted Yuga Labs to launch a metaverse and venture into web 3 applications. The metaverse dubbed Otherside had 55 000 virtual lands with land deeds as an NFT. Buyers could use Apecoin to purchase land, which would offset your 305 ApeCoins. 

The initial sale of the virtual lands auction was an instant hit generating a massive $300 million and an equal amount during post-market resale. This project is the biggest traffic source to the Ethereum network this year.

Legality Question

That said, the legality of the project is in question. But since Yuga  Labs is not directly involved, the company is not subject to the security regulations. The NFT is an independent entity under the DAO, and NFT is outside the Security Exchange Commission’s purview. 

Investing in ApeCoin Is a Worthy Consideration 

As the native currency of the web 3 projects, Apecoin could stick around for quite some time. You could take advantage and invest some amount of your diversified portfolio in crypto. The good news is that it is listed on Coinbase, Coinbase Unsiwap, and Gemini, among other exchanges.  You will want to do your due diligence first, like any other investment asset.

The post Is ApeCoin one of the most popular coins on Coinbase? appeared first on Best Stocks.