What Is ApeCoin And How Does It Work?

ApeCoin (APE) is a cryptocurrency asset built using the Ethereum blockchain, making it an ERC-20 token.

The APE ERC-20 token, consisting of 1 billion tokens, is built and controlled by the community. APE holders can cast their votes on the token governance decisions through the ApeCoin DAO, a decentralized organization.

Unlike its NFT counterparts, the ApeCoin token is fungible, in contrast to the NFT token which is non-fungible. Each APE token is equivalent to the previous token, as is the case with other cryptocurrencies such as Bitcoin and Ethereum.

By CoinMarketCap’s estimate, there are roughly 1 billion APE tokens in existence, of which a little over a quarter are in circulation currently.

This ERC-20 token is backed by the same team that created the hugely successful Bored Ape Yacht Club NFT collection. If you are unaware, this collection refers to 10,000 unique drawings by the National Film Theater, some of which have since sold for over a million dollars apiece.

Many celebrities – such as Sylvester Stallone, Justin Bieber, Eminem, Snoop Dogg, Jimmy Fallon, and Johnny Depp have acquired Bored Ape Yacht Club NFTs, which has increased the market value of these sorts of tokens. 

Due to this, speculative investors are showing a great deal of interest in ApeCoin.

APE: How does it work?

ApeCoin (APE) is the governance and utility token of the APE ecosystem. It is managed by the ApeCoin DAO and supported by the APE Foundation.

APE provides a decentralized layer of protocol support for the APE community as the foundation for Web 3.0

ApeCoin DAO is a decentralised autonomous organisation (DAO) that allows all APE token holders to vote on governance. They can decide how the Ecosystem Fund is allocated, establish governance rules, pick initiatives and collaborations, and so on.

The APE Foundation will carry out the community-led governance decisions after the DAO members vote on the proposals. The DAO’s legal steward is the APE Foundation. It promotes the fair and inclusive development of the APE ecosystem.

A unique council known as the Board exists within the Foundation. It is in charge of seeing that the community’s visions are achieved.

Five members of the tech and crypto communities make up the Board, including Reddit co-founder Alexis Ohanian. APE holders will elect new Board members annually through a decentralized system of six-month terms.

Some NFT collections related to the APE ecosystem.

Bored Ape Yacht Club (BAYC)

Bored Ape Yacht Club (BAYC) was launched in April 2021 as the first NFT collection in the APE ecosystem. The collection consists of 10,000 unique Apes on the Ethereum blockchain. Each Ape has a one-of-a-kind look, design, as well as rarity.

Mutant Ape Yacht Club (MAYC)

The Mutant Ape Yacht Club (MAYC) is an NFT collection of up to 20,000 modified BAYC Apes. 10,000 mutant serums were airdropped to BAYC NFT holders, with three tiers of serums increasing the rarity of features.

BAYC holders could produce many types of mutant Apes using the various tiers of serum they were given. A single mutant can be generated by each BAYC from a single serum type, and the serum actually disappears after usage.

The MAYC was also a way for the APE community to welcome more new members. Following the mutant serum airdrop in August 2021, 10,000 mutant Apes were also minted for public sale.

Bored Ape Kennel Club (BAKC)

Bored Ape Kennel Club (BAKC) is a collection of dog NFTs that were made available to each member of the BAYC. For every Bored Ape NFT they own, holders could “adopt” a random Club Dog NFT for free, only paying a gas fee. The 10,000 BAKC NFTs, like the Apes, have a variety of characteristics and rarities.

How to Buy ApeCoin (APE) – Fee Comparison

Platform 

Crypto trading fee 

 

Inactivity fee 

Withdrawal fee 

eToro 

Spread, 0.75% for Bitcoin 

$10 a month after one year 

$5 

Crypto.com 

0.04% maker and taker fees 

Free 

According to the currency withdrawn. 0.0004 for ETH 

Binance 

Commission, starting from 0.1% 

Free 

 

0.80 EUR (SEPA bank transfer) 

Coinbase 

Commission, starting from 0.50% 

Free 

 

1.49% to a US bank account 

Kraken 

Commission, starting from 1% per trade for sellers. Free for buyers 

Free 

 

According to the currency withdrawn. 0.0005 for BTC 

Conclusion 

Since its launch, the holders of the BAYC NFTs have gotten more than 145000% returns up-to-date, and this success is why the exchanges didn’t wait long to get the ApeCoin listed on their platforms. 

Yuga Labs, the creator of the popular Bored Ape Yacht Club (BAYC) NFT collections, has also adopted APE as the primary token for all new products and services. More utilities are expected to be added to the token in the future, according to the community. 

For instance, a staking mechanism for APE HODLers to make passive revenue, additional GameFi apps, or even cooperation with Yuga Labs’ other NFT IPs.

In the year 2022, ApeCoin is expected to be among the hottest crypto assets on the market.

Looking for an easy way to understand NFT’s? Take a look at: Let’s Have A Sneak Peek: What are NFTs?

Also Read Beginner’s Guide: Introduction to Cryptocurrency and Blockchain.

Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

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