What is APE? Does APE coin still have potential for investment?

Perhaps the name APE, also known as Apecoin, is no longer unfamiliar to “hardcore fans” of NFT. Apecoin is a HOT project recently, appearing on many major exchanges such as Binance, FTX, Coinbase,… So what is APE that attracts so many investors?

What is ApeCoin (APE)?

Apecoin is the decentralized governance token of the two largest NFT collections on Ethereum, BAYC (Bored Ape Yatch Club) and MAYC (Mutant Ape Yatch Club).

This token is built and controlled by the community, serving as a decentralized protocol layer for community-led initiatives. This helps Metaverse real-world project activities.

How does APE work?

APE was created for use within the APE ecosystem. The project is run by ApeCoin DAO and supported by APE Foundation. ApeCoin DAO is a decentralized organization whose purpose is to help APE token holders participate in the organization’s governance decisions.

With these tokens, users have the power to decide how to allocate Ecosystem funds. At the same time, users can also make governance rules, project selection, partnerships, etc. After members vote on proposals, the APE organization will implement governance decisions made by the community. co-leader.

The APE Foundation is the legal governing body of the DAO organization, created to promote the growth of the APE ecosystem in its entirety. The APE Foundation Board of Directors is tasked with ensuring community control is exercised.

This board includes five members from the technology and cryptocurrency community, including Reddit co-founder Alexis Ohanian. APE owners will vote for new board members annually. The Board of Directors is responsible for monitoring the decisions of DAO members.

APE ecosystem

The APE ecosystem includes the ApeCoin community and products and services using APE. The NFT collectibles associated with this ecosystem are:

Bored Ape Yacht Club (BAYC): This is the first NFT collection of the APE ecosystem. BAYC was released in April 2021. On the Ethereum chain, there are 10,000 unique species of apes. Therefore, each Ape will have different characteristics in appearance, personality, etc.

Mutant Ape Yacht Club (MAYC): This is a group of 20,000 apes that have undergone mutations since the first BAYC apes were created. Another purpose of Mutant Ape is to welcome newcomers to the APE community.

The Shepherd Club (BAKC): This is a collection of NFTs for dogs. Every BAYC member will have access. For each Bored Ape NFT, the owner can adopt 1 Club Dog NFT for the cost of gas. Similar to apes, 10,000 BAKC NFTs have many unique and distinct characteristics.

Otherside metaverse: This ecosystem includes 200,000 pieces of land. Users can own it by purchasing or minting Otherdeeds. These are NFTs used as ownership deeds for virtual parcels of land.

What is the APE token used for?

APE was released as the official currency of ApeCoin DAO. APE tokens are used to consolidate spending, providing participants with a currency that can be used without the need for a centralized intermediary.

The APE token is a tool for third parties and developers to participate in the ecosystem by incorporating APE into games, services and other projects. Additionally, APE is used as a payment currency in the Bored Ape Yacht Club ecosystem and provides access to new products in the future.

What are the highlights of APE?

The APE Foundation

APE Foundation is a management organization of ApeCoin consisting of users who hold ApeCoin. The Foundation supports decentralized governance whose mission is to manage the decisions of the ApeCoin DAO. Also responsible for project management, bookkeeping and other tasks. This activity is to ensure the DAO community idea has the support to become a reality.

The purpose of APE Foundation is to create growth for the comprehensive APE ecosystem. The organization uses the Ecosystem Fund to pay expenses as directed by the ApeCoin DAO and also provides infrastructure to ApeCoin holders through open governance processes.

Use as a decentralized autonomous organization (DAO)

ApeCoin DAO builds and manages communities globally. Therefore it plays an important role in the APE ecosystem. The APE Improvement Proposal Process allows ApeCoin DAO members to make decisions regarding Ecosystem Fund allocation, projects, governance rules, partnerships, etc.

The Board

In accordance with the guidelines of the ApeCoin DAO members, the DAO’s board of directors will exercise oversight of the organization’s administrators. The purpose of the council is to manage DAO proposals and consider community comments.

The Board responds to watch recommendations according to ApeCoin DAO rules. The board will initially serve a six-month term, after which DAO members vote annually to elect members of the board.

Price history of APE coin

After being launched on March 17, 2021, the coin was trading around a price of 5 USD. The token skyrocketed more than 250% in just a few days, reaching $16. APE coin fluctuated continuously at this threshold for a month.

In April 2021, APE coin was launched into the Otherdeeds metaverse land and raised 320 million USD. This has led to the BAYC NFT having the highest sales revenue. This event impacted APE coin, pushing the price to a peak of 27.5 USD on April 28, 2021.

However, this event caused the Ethereum blockchain to overload, making many people unable to trade NFTs, the APE price returned to 14.5 USD just a few days later. In early May 2022, Elon Musk suddenly used Ape’s ape image on social networks. This event also pushed Ape’s price up 19% to reach 17.46 USD.

As the cryptocurrency market suffered from the impact of the global recession, the coin’s market capitalization fell to $2.25 billion. The highest level in history is 7.5 billion USD. This coin is currently trading at 7.29%, right at position 33 in the top 100 cryptocurrencies on coinmarketcap.

Should you invest in APE coin?

To answer this question, we need to consider the following two factors:

About the project

The launch of the APE project is the first step in the plan to develop the Bored Ape Yacht Club universe in the coming years. They plan to sell virtual land in the metaverse, build NFT games, and APE coin will become the main virtual currency in this ecosystem.

APE was also listed on many major exchanges right after its launch. Not every coin project can do this, proving that the attraction of APE coin to the community is extremely great.

About tokens

ApeCoin is currently priced at 6.12 USD. This is a fairly modest price compared to what the project demonstrated when it was first launched. However, with the current volatile market context, we should consider carefully before making a decision to invest in ApeCoin.

Above is a summary of information about the ApeCoin project that Finhay provides to you. Hopefully through the article, you can gain more knowledge about what APE is and the highlights of the project. From there, you can make the right judgments to decide to invest in this electronic currency.