The hype around a trending coin isn’t what determines if it’s good or bad, but when the hype dies down, that’s where the true community and direction of the project is exposed.
ApeCoin, having just been dropped on the 17th of March – a few weeks ago – has run through the average cycle of a new hype coin thus far. It pumped, was dumped, and now slowly trades sideways as the price marginally climbs higher over the last 2 weeks, having trouble each time it meets the critical resistance level around the $13 mark.
Bored Ape
The reason for the hype around this new ERC-20 token is that it’s an extension of the NFT community “Bored Ape Yacht Club.” This NFT collection is arguably the most popular in the world, with a floor price of 91 ETH – $315,000 USD. Whether you like it or not, viral hype and celebrity buyers are the main reasons why this project is valued as it is.
The exclusive club of Bored Ape owners were airdropped APE tokens, followed by a public rollout shortly after of ApeCoin.
ApeCoin
The token, based on available data, has no bad signs.
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It’s a deflationary token with 1 billion in limited supply.
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The ApeCoin DAO means the community makes decisions.
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The token gives users exclusive access to games, merch, events, and services, making it a community based and potentially powerful networking tool.
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A set amount of the supply owned is supposedly locked away for 48 months, implying long-term ideals. However, they never clearly clarify what portion of tokens would be locked away.
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The token distribution is split between launch contributors (14%), Ecosystem Fund (62%), Yuga Labs + Charity (16%), and BAYC founders (8%).
Otherside – the Bored Ape metaverse
The utility for the ApeCoin: a Bored Ape metaverse called the “Otherside.” A $450 million dollar project, this metaverse is set to include NFT capabilities and benefits from the likes of cryptopunks, world of women, collaborations with the Sandbox, and more. Not much else is known, and presumably, the project is in its early stages. Eliminate the hype, and what do we have?
Summary
Yuga Labs, an LLC worth $4 billion that has only created one game in the past several years, is betting on metaverse as the next big thing. They have several well versed and successful team members on board, but their ventures into crypto are unproven.
Since a metaverse is the only use for their coin, the coin’s value is solely reliant on hype as well as a metaverse that has only revealed a short video trailer. There is no real information besides this. Invest wisely and come to your own decision, but it seems like the Bored Ape Yacht Club is riding a hype train to an unknown destination.
Having said that, the potential on the flipside is not to be discounted if they can create something special inside their metaverse. Major emphasis on “If.”
