APE

Most recent update: [June 26, 2023]   

What Is ApeCoin? 

ApeCoin is an ERC-20 token that serves the Bored Ape Yacht Club community and its related communities. The ApeCoin is managed by the ApeCoin DAO and supported by the APE foundation. The allows all APE holders to vote on governance decisions related to the token. The APE Foundation facilitates decentralized and community-led governance.  

APE, the official token of ApeCoin, acts as the utility token for the APE ecosystem, focusing on strengthening the BAYC community. Although ApeCoin does not have a big following as of now, the crypto is backed by some pretty big names like Yuga Labs. Yuga Labs also adopt APE as the primary token for all their new services and products. Yuga Labs created the trending Bored Ape Yacht Club (BAYC) NFT.  

Since Bored Ape Yacht Club adopted the token, ApeCoin could be considered a fungible token investment into the non-fungible token ecosystem. It is an open-source project designed to serve the Web 3.0 economy and its developments. The APE token is created to support what’s next, controlled, and built on by the community. It serves as a decentralized protocol layer for community-led activities focused on enhancing culture in the metaverse like, hosting events, developing digital goods, etc. 

How Does ApeCoin Work? 

ApeCoin is a cryptocurrency that aims to be both sustainable and scalable. It integrates a few popular protocols with advanced blockchain systems to achieve its goals securely. The protocol is slightly based on the Ethereum EIP system. 

The crypto works as the open-source protocol layer of the APE ecosystem. APE is also a governance token that enables coin holders to participate in the DAO. The token operates as the decentralized currency, providing access to exclusive games, events, merchandise, and other services. It also offers incentives for third-party developers to launch projects in the APE ecosystem. The token holders can decide how to allocate the ecosystem funds, choose projects, partnerships, etc. Once the DAO members vote on the proposal, the APE foundation would further proceed with the community-led governance decisions.  

History And Founders 

ApeCoin was designed with inspiration from Yuga Lab’s Bored Ape Yacht Club project. The cryptocurrency was founded to be used within the growing APE Ecosystem, supported by the APE Foundation. ApeCoin DAO empowers its community to design blockchain games and services and create physical and virtual merchandise. The organization is administered by the ApeCoin Foundation. 

The ApeCoin DAO seeks to build and maintain the APE Ecosystem fairly and inclusively. It offers an infrastructure for ApeCoin holders to collaborate through open and permissionless governance processes. The APE ecosystem includes the community holders of ApeCoin and all products and services that use APE. 

Additionally, the APE Foundation is a non-profit organization created to enhance the platform’s adoption and support the expansion of the community. The “ Board,” an administrative council within the APE Foundation, would implement the decisions of ApeCoin DAO members. The foundation was formed to facilitate decentralized development of the APE ecosystem, allowing holders in the DAO to create new Web 3.0 applications and services. 

What Makes APE Unique?  

ApeCoin’s governance properties make APE a shared and open currency that the token holders can use without a centralized authority. By improving community participation, ApeCoin solves one of the crucial issues that DAOs face, centralization. ApeCoin’s technology also offers easy access to the crypto world.  

Yet another challenging concern that confronts DAOs is higher gas fees. ApeCoin offers a fee-free transparent structure that allows the community to vote weekly rather than monthly or bi-annually.  

Moreover, ApeCoin has strong ties with Bored Ape Yacht Club, which has an extensive collection of associated Bored Ape non-fungible tokens that include digital art, picture, audio, and video files tokenized and secured on blockchain technology. The rising popularity of BAYC solidifies APE’s position in the market.  

How Is ApeCoin Secured? 

The ApeCoin project was created with security as a primary concern. To begin with, ApeCoin is an ERC-20 token that is launched on the Ethereum blockchain. This makes it a cryptocurrency secured by Ethereum’s Proof-of-Work (POW) mechanism.  

Additionally., the ApeCoin system incorporates snapshots for voting purposes. Every token holder should verify their wallet through an authentication process to participate in the governance activities.  

APE Tokenomics  

ApeCoin has a limited supply of 1 billion tokens, of which 277,500,000 tokens are already in circulation. All of them were minted in one go. Since there is no method to manufacture additional tokens through the contract interface and no capability for burning, the supply will 

remain constant. The APE token is built and controlled by the community. The token has been listed across some leading exchanges like FTX, Binance, and OKX.  

Use Cases Of APE 

APE, the ERC-20 token, is a governance and utility token designed within the APE Ecosystem to enhance and incentivize decentralized community building at the forefront of Web3.0. The token has several vital purposes in the APE ecosystem. They are: 

Governance: ApeCoin acts as the ecosystem’s governance token that allows token holders the right to participate in ApeCoin DAO.   

Unification of spending: Being a utility token of the APE ecosystem, ApeCoin is used as a common and open currency that could be used by any participants, eliminating the need for a centralized middleman. The token could also purchase products and services like play-to-earn games that BAYC is developing.  

Access: ApeCoin acts as a gating token providing users access to specific parts of the ecosystem that are otherwise unavailable, like unique games, items, events, and services. Token holders can also access exclusive features of the APE ecosystem such as games, merch, events, and services.  

Incentivization: APE also performs as a tool for third-party developers to participate in the APE ecosystem. They can incorporate APE in their services, games, and other endeavours as incentives. For instance, APE is adopted as an incentive for players by the play-to-earn mobile game developed by Animoca Brands, Benji Bananas.  

Risks Associated With APE Coin 

The team behind ApeCoin has to work harder to gain market share and match its already existing competitors in the market. Currently, the primary driver behind APE’s explosive performance seems to be marketing and hype, which makes it a high-risk investment.  

However, since the token holders govern the ApeCoin DAO, there is potential for ApeCoin in the future. The roadmap of ApeCoin reveals that there will be more utilities for token holders, especially when combined with the underlying NFTs, which is a booming sector.  

Due Diligence  

Before listing ApeCoin on the VirgoCX Platform, VirgoCX performed due diligence on ApeCoin and determined that ApeCoin is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis includes reviewing publicly available information on the following:  

• The creation, governance, and location of ApeCoin and/or its primary development team; 
• The supply, demand, maturity and liquidity of ApeCoin; and 
• Legal and regulatory risks associated with ApeCoin.  

Statutory Rights under Securities Legislation 

VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30, 2022 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision. 

References 

https://coinmarketcap.com/currencies/apecoin-ape/  

https://www.securities.io/investing-in-apecoin-ape-everything-you-need-to-know/  

https://www.business2community.com/cryptocurrency/apecoin-price-prediction  

https://www.cnbctv18.com/cryptocurrency/explained-what-is-apecoin-and-who-is-behind-it-12896432.htm