This new marketplace allows NFT investors to buy and sell tokens across Yuga Labs’ collections. These include BAYC, Bored Ape Kennel Club and Mutant Ape Yacht Club. Apecoin , the native cryptocurrency of the non-fungible token collection Bored Ape Yacht Club , became the biggest metaverse token by market capitalisation a little over a month after its release in 2022.

  • APE, the governance and utility token of the APE ecosystem, was built to support «what’s next» while empowering the building of decentralised communities.
  • Something that the team had hinted at a few months back was the creation of a native cryptocurrency – APE coin – that would power the entire ecosystem.
  • There are no capabilities to mint further tokens through its contract interface, and this supply should never increase.
  • The auction program accepts ApeCoin from NFT and metaverse enthusiasts in exchange for Otherdeeds.
  • Supported by the Ape Foundation, ApeCoin is governed by the ApeCoin DAO which creates a framework for permissionless governance processes.

One of the most famous web3 projects is the Bored Ape Yacht Club , a collection of whimsical NFTs created by a company called Yuga Labs. The company has been consolidating some of the most valuable collections in the NFT world; earlier this month, it announced that it had acquired the intellectual property behind CryptoPunks and Meebits. The arrival of blockchains over the past decade created a new option for impatient VCs. Companies in the Web 2.0 era produced only goods and services, whose value was always denominated in dollars or other national currencies. But companies in the web3 era offer a third product — tokens — and the value of those tokens is far less tethered to reality. More often, the value is correlated to the collective belief that the project’s backers have in it, and both those beliefs and the tokens’ value can be manipulated as part of the startup’s growth.

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The person or people submitting the AIP Idea will be referred to as the author or authors . The AIP idea informally gathers comments via Discourse for seven days. The author cannot edit the original post — if the author wants to propose changes to the original idea, they must do this via the comments. Resubmitted proposals for anything the DAO attaches its name to, including projects and collaborations.

How does ApeCoin work

The token also exists to incentivize third-party developers to participate in the APE ecosystem by building applications that incorporate ApeCoin. The popularity of BAYC led to athletes, musicians, and actors purchasing Bored Ape NFTs to use as profile pictures on social media, adding to the cult status of Bored Apes as profile picture NFTs. We recommend the best products through an independent review process, and advertisers do not influence our picks.

To add to the popularity of these NFT collections, an airdrop to all holders of Bored Ape and Mutant Ape NFTs took place. For each Bored Ape NFT, 10,094 tokens were allocated and for each Mutant Ape NFT, 2042 tokens were allocated. As mentioned above, ApeCoin holders are granted governance, meaning as a holder you are entitled voting rights on projects, partnerships, applications, and beyond. The metaverse will play a growing factor in digital products in the future.

Proposal Conflicts

After Bored Ape Yacht Club was created, Yuga Labs quickly followed up on their initial success with another project. These are also NFT artworks but feature “mutant” versions of the mainline NFT. Bored Ape Yacht Club started as a series of procedurally generated NFT artworks.

How does ApeCoin work

Decentralized Autonomous Organizations are a systemic design structured to ensure general and undiluted participation of the members of the organization. In cryptocurrency communities, rights to this participation are tokenized and every token holder is considered a member of the DAO. Through voting portals, members of the DAO are able to vote on https://interiorua.com/portfolio-item/apartment-on-obolon/ proposals and also submit their improvement suggestions to be voted on by the rest of the holders. The APE ecosystem consists of ApeCoin holders as well as other related products and services, such as NFT collections and metaverses. Once the votes are tallied, the ApeCoin Foundation implements the governance decisions taken by the community.

While the company that launches blockchain tokens doesn’t directly affect its price, it does so indirectly. For example, Yuga Labs’ development of the Otherside platform increases ApeCoin’s utility value. Otherside aims to be more than just a blockchain game, similar to the mega-popular Axie Infinity.

As APE is an ERC-20 token, you could swap Ethereum-based stablecoins or ETH on a decentralized exchange like Uniswap for ApeCoin, for example. Moreover, numerous crypto wallets also offer in-app token swapping, enabling you to swap other ERC-20 tokens for APE. Crypto exchanges are online trading platforms for digital assets that function in a similar way as online stock brokerage platforms, such as Fidelity or Charles Schwab. The only difference is that you use U.S. dollars to buy and sell cryptocurrencies instead of traditional financial investments, such as stocks and bonds.

How does ApeCoin work

The considerable risk with APE is that, unlike tokens like Avalanche or Algorand , it’s not tied to a utility of its own. Instead, it relies on the metaverse and BAYC as the primary drivers of ApeCoin price. Additionally, the Ape NFT coin space is very volatile, even more so than the crypto space, so you need to be able to stomach higher levels of risk to invest in APE. As APE is a prominent token in the cryptocurrency and metaverse space, several third-party developers incorporate APE into their products. For example, the coin is used as a reward in the popular play-to-earn mobile game ‘Benji Bananas’.