ApeCoin, APE on the ticker, is the Yuga Labs cryptocurrency. Members of the ever-expanding Web3 ecosystem use the asset as a means of transaction. It’s been on an up-and-down price journey since it launched in March 2022, but as long as Yuga Labs continues to grow, the importance of the token will keep increasing.
The ApeCoin launch
ApeCoin is an ERC-20 token that is fungible and built on the Ethereum blockchain. It was initially airdropped to individuals who owned an NFT that was part of the Bored Ape Yacht Club (BAYC) or the Mutant Ape Yacht Club (MAYC) collection.
Recipients of the airdrop received the token directly in their Ethereum wallets, making it one of the most valuable airdrops in cryptocurrency history. At launch, holders of a BAYC NFT could claim over $100,000 worth of APE.
Holding APE provides users with membership in the ApeDAO, a decentralized autonomous organization that enables them to vote on proposals for system improvements and govern the community surrounding the token. APE is intended to be used as a utility token or currency in Web3 projects, such as games and metaverse worlds.
How does it work?
BAYC holders could claim 10,094 APE, while those who held a Bored Ape Kennel Club NFT (BAKC) in addition to a Bored Ape could claim 10,950 tokens. MAYC holders were eligible for fewer tokens, with a total of 2,042 APE available. If an MAYC holder also had a BAKC, they could claim 2,989 APE.
The developers of the token highlighted four main purposes for it:
- Governance – Holders can participate in the ApeDAO, making decisions about the direction of the community and future ventures.
- Unification of spend – APE can be used as a decentralized currency, powered by the Ethereum blockchain.
- Access – Holding APE can provide users with opportunities, such as additional airdrops or exclusive real-world events, as a part of the community.
- Incentivization – Developers of new blockchain projects such as games or metaverses can incorporate ApeCoin into their projects and participate in the Yuga Labs ecosystem.
ApeCoin in the real world
Yuga Labs’ metaverse game world Otherside connects to BAYC. The company introduced a new digital real estate NFT called “Otherdeeds” with 55,000 parcels. These NFTs were priced in ApeCoin, and Yuga Labs generated more than $300 million through their sale, which was all transacted in APE tokens.
On 18 January, Yuga Labs released Dookey Dash, an endless running game similar to Temple Run. Players could collect points and climb the leaderboard to earn prizes. Players could spend ApeCoin on in-game items. When Dookey Dash launched, the price of the token rose 11%.
However, ApeCoin is not restricted to Yuga Labs projects. The game Benji Bananas, developed and published by Animoca Brands, is a play-to-earn (P2E) game in which players can earn ApeCoin. In this case the APE rewards exist alongside the game’s native PRIMATE token rewards. The creators of ApeCoin envision that this type of adoption will expand and continue into the future.
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