What does Apecoin mean for the cryptocurrency industry?
The NFT space is moving and evolving at a rapid pace. A week doesn't seem to pass by without something new and innovative being announced. In this short article we’re going to dive through some developments surrounding the newly released Apecoin and consider what this new coin means for the cryptocurrency industry as a whole.
The Launch of ApeCoin
After nearly 6 months since their initial announcement of it, Yuga Labs continued the tour de force they started with their acquisition of CryptoPunks and Meebits by launching the highly anticipated ApeCoin ($APE).
ApeCoin was airdropped to all holders of either Bored Apes or Mutant Apes. Bored Ape owners got just over 10,000 $APE, while Mutant Ape owners got just over 2,000. At the time of this writing, this is equivalent to more than $100,000 and $20,000, respectively. Talk about rewarding your collectors.
Days after its launch, ApeCoin has been comfortably sitting in the rankings of the top 50 cryptocurrencies in the world by market capitalization.
So, What Is It?
ApeCoin serves as the token that will power all aspects of the Bored Ape Yacht Club ecosystem and metaverse going forward. From the first day of its existence, all holders of ApeCoin will make up ApeCoin DAO, a collective that, together, decides the future of ApeCoin. Proposals can be made on the function, application, and utility of ApeCoin, as voted on by the members of the DAO.
But the use case for ApeCoin doesn’t stop at ApeCoin DAO. Although we can’t say for sure what its other specific applications will be, there are a few strong theories we can investigate. Let’s go through them.
In a leaked Bored Ape Yacht Club pitch deck that made its way around Twitter, it was revealed that the project is planning on building its own metaverse. The plans indicate that they will be selling over 100,000 plots of land in said metaverse.
Although nothing has been confirmed, many wonder if instead of Ether, ApeCoin will be the only accepted currency of this sale. This would increase demand for the token dramatically come time of this launch.
A second strong theory has to do with Bored Ape Yacht Club infrastructure. Many have wondered why Bored Apes haven’t moved off of OpenSea and onto their own exclusive marketplace. Here, they’d be rewarding their collectors by removing the 2.5% sales tax that goes to OpenSea every time a Bored Ape is sold. They would also be decreasing their dependency on third parties that have become susceptible to scams. A Bored Ape Yacht Club marketplace where $APE is the only medium through which to transact is what many theorise could be the next development by the project runners.
It doesn’t stop there though. As is widely known and even been addressed by Yuga Labs as of late, the Bored Ape Yacht Club will be releasing their own play-to-earn game in collaboration with Animoca Brands in the coming months. $APE not acting as the game’s currency seems highly improbable, especially when taking into consideration that Animoca’s co-founder Yat Siu has been appointed to the board of ApeCoin.
Finally, in a video posted to Yuga Labs’ official Twitter, ApeCoin will power a venture known as “The Otherside.” Very little else is known about The Otherside other than that it will incorporate a number of NFTs, not just Bored Ape Yacht Club ecosystem pieces
In a teaser that was embraced more than enthusiastically, Yuga Labs showed off an animated version of a future metaverse known as “Otherside,” as discussed above.
The most interesting part of all, though, was that the video included a number of other popular NFT collections, including CryptoPunks and Meebits (which Yuga now owns), World of Women, Cool Cats, CrypToadz, Mutant Apes, and others.
Off of this spotlight, a number of these collections experienced brief price increases.
Beyond price speculation, though, the question most obviously on everybody’s mind is: What is Yuga building?
It’s particularly important to note that this is a Yuga Labs creation, not a Bored Ape Yacht Club creation. Will it have something to do with the leaked BAYC land sale? Maybe, but maybe not.
A lot is up in the air, but the bottom line is this — everybody is excited.
Let’s get into what all these developments mean for the narrative in NFTs right now.
Yuga Labs Has No Competition
Yuga Labs is innovating on an extraordinary level, not just within NFTs, but across all of cryptocurrency. Now owned by “the Apes,” CryptoPunks are now a clear second. There is only one king and its name is Yuga Labs.
But CryptoPunks were never building the same product or brand as Bored Apes. There are, however, a number of popular projects that are (or are at the very least trying). These include, but are not limited to, some of the mid-cap projects: Doodles, Cool Cats, Azuki, World of Women, and Gutter Cats, among others. What do the earth-shattering results produced by Yuga Labs mean for these projects?
Not a lot of good. When one team is outperforming so many by so much, people come to question how much value the others truly are creating. And that’s what we’re starting to see the market think about.
Does the value proposition of a Doodle fall apart if it’s being done so much better by somebody else?
Maybe this is the issue with so many of the NFT collections we see today — they overpromise and underdeliver. But there is one type of project where this is not the case, because they make no promises to begin with — a CC0 collection (which I discussed in this article >>Link<<).
With CrypToadz inclusion in Yuga Labs’ ‘Otherside’ teaser, we’re beginning to see a bigger and bigger narrative shift in favor of CC0 projects. If an NFT projection can’t deliver the successful experience it promised, why promise anything at all?
What will be interesting is to see how this development unfolds over the coming months, particularly with the full release of Yuga Labs’ ‘Otherside.’