What is ApeCoin (APE)?
Launched on 17 March, 2022, via an airdrop to investors in the BAYC (Bored Ape Yacht Club) and associated NFT collections (like the Mutant Ape Yacht Club and Bored Ape Kennel Club), ApeCoin is the token powering the Ape ecosystem.
It is administered, but not overseen, by the APE Foundation – which acts as a base layer on which those holding APE in the ApeCoin DAO (decentralised autonomous organisation) can build projects. The foundation administers the Ecosystem Fund, which the DAO can use to support promising new projects.
Anyone holding APE tokens can be part of the DAO, but there is also a special council or ‘Board’ consisting of five members, elected by the DAO on an annual basis. The initial Board served for six months before the first elections, and consisted of Alexis Ohanian (776/Reddit), Amy Wu (FTX), Maaria Bajwa (Sound Ventures), Yat Siu (Animoca Brands), and Dean Steinbeck (Horizen Labs).
ApeCoin (APE) Basics
APE is an ERC-20 token on the Ethereum proof-of-stake blockchain.
There is a fixed supply of 1 billion APE, and tokens cannot be burned, so the total supply will remain the same. As with many crypto projects, a portion of the tokens allocated to project contributors were locked for set periods of time, being gradually unlocked over the first 48 months.
APE token distribution is as follows:
- 62% to the ecosystem fund
- 16% to Yuga Labs (of which 6.25% are being donated to the Jane Goodall Legacy Foundation)
- 14% to launch contributors
- 8% to BAYC founders
ApeCoin (APE) Adoption & Usability
APE’s primary uses cases are within the APE ecosystem, as follows:
- Governance – APE allows holders to participate in the ApeCoin DAO.
- Unification of Spend – APE gives all community members access to a common, shared and open currency that is totally decentralised.
- Access – APE provides access to exclusive games, merch, events, and services.
- Incentivisation – APE gives a way for third-party developers to build into the ecosystem.
Of course, like most cryptocurrencies, APE can also be bought and traded on secondary exchanges, and may be used for payments in its own right. Though, at the time of writing APE was too new to be widely accepted.
ApeCoin (APE) Fees and Speed
APE is an ERC-20 token on the Ethereum blockchain, so gas fees need to be paid in ETH and vary according to network demand. Transaction speed also depends on Ethereum network congestion.
APE Security and Safety
Due to the vast and decentralised nature of the Ethereum blockchain, APE can be considered reasonably secure. However, as always, tokens can be vulnerable when using third-party platforms like crypto exchanges and wallets.
Security and safety tips:
- Don’t leave your APE on-exchange for longer than absolutely necessary. If you are not currently trading, transfer them to a local wallet for short-term storage or staking.
- For long-term storage or staking, keep your crypto in a hardware wallet.
- Always keep your wallet keys in multiple safe places – they cannot be recovered.
- Never tell anyone about your crypto holdings. No matter how secure your storage is, if you or your loved ones are physically threatened, you’ll probably hand over your personal keys.
Because APE launched in March 2022, it missed the volatility of the 2021 crypto bull run and subsequent collapse. However, it still spiked dramatically in the first month, going from just over $8.50 at launch to nearly $27 on 28 April. However, it had collapsed to under $5 within a couple of months, and at the time of writing in mid-December 2022, was trading at just under $4 (CoinGecko data).
Final Word on ApeCoin (APE)
As with all cryptos whose primary uses are governance and rewards for a specific ecosystem, APE’s success or failure is absolutely tied to the wider Ape phenomena. Whilst this is, thus far at least, primarily centred around the iconic Bored Ape Yacht Club NFTs, the test will be whether the project can attract enough developers to build out the ecosystem. If it does, then APE could carve out a sustainable future – but, if BAYC NFTs fall out of favour, this could be difficult.