Ape Coin Investment: A Beginner's Guide To Crypto Riches

ApeCoin (APE) is a cryptocurrency token that powers the APE ecosystem, providing holders with access to exclusive events, games, services, and merchandise. It is a utility and governance token that was created to empower the community surrounding the APE ecosystem, which was built on the back of the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection.

ApeCoin can be purchased on crypto exchanges such as Binance, Coinbase, and Kraken, or on peer-to-peer (P2P) or decentralized exchanges (DEX). Before investing in ApeCoin, it is important to understand the risks associated with cryptocurrencies and conduct thorough research.

ApeCoin's utility and governance

ApeCoin is the governance and utility token of the Bored Ape Yacht Club (BAYC) ecosystem. It is also the primary token of the ecosystem emerging around the BAYC non-fungible token (NFT) collection and its founding organisation, Yuga Labs. ApeCoin is designed to be run in an inclusive and democratic way via the APE Decentralised Autonomous Organisation (DAO).

The APE DAO lets APE crypto holders vote on the direction of ApeCoin projects. It works in tandem with the APE Foundation to carry out governance decisions that must be implemented in the real world. The APE Foundation is responsible for weekly project management and operations. It uses ecosystem funds as directed through APE DAO governance and is responsible for fulfilling the DAO's decisions.

The APE Foundation has a special body called the Board that executes the community's visions. The APE Board comprises five members from the technology and crypto community. ApeCoin holders vote for the new Board members annually.

As a governance and utility token, ApeCoin serves multiple purposes in the ecosystem. ApeCoin use cases include enabling holders to participate in the governance of the DAO and enabling them to access exclusive features of the ecosystem, such as games, events, merchandise and services. ApeCoin can also be used to purchase items in the ecosystem and is used as an in-game currency for APE-compatible blockchain-based games. It can also be used to gain access to exclusive BAYC events and Bored Ape's network of stakeholders.

Buying ApeCoin on a crypto exchange

ApeCoin (APE) is a crypto token that powers the APE ecosystem, providing holders with access to exclusive physical and digital events, online games, Web3 services, and merchandise. It is a utility and governance token that was created to empower the community surrounding the APE ecosystem, which was built on the back of the Bored Ape Yacht Club (BAYC).

If you're looking to buy ApeCoin, you can do so on a crypto exchange. Here's a step-by-step guide on how to buy ApeCoin on a crypto exchange:

Step 1: Sign up for a crypto exchange

The first step is to sign up for an exchange that supports ApeCoin. Not all leading cryptocurrency exchanges support APE, but some of the largest exchanges that currently support it include Binance, Coinbase, and Kraken, with Gate.io, WhiteBIT, and Bybit also being popular options.

Step 2: Complete KYC and deposit funds in your exchange account

Once you've chosen your preferred exchange, you'll need to register using your email address and create a password. You will also need to complete the Know Your Customer (KYC) onboarding process, which may include providing a copy of your government-issued ID and proof of address. After that, you can deposit funds into your exchange account using one of the available payment options. For US customers, wire transfers are usually available.

Step 3: Select ApeCoin among the available assets and buy the token

After funding your account, you can click on ApeCoin from the list of tradable assets. Place an order for the amount of APE you want to purchase, review the order details, and confirm the transaction. Once your order is filled, the APE tokens will be deposited into your exchange account.

Step 4: Securely store your ApeCoin in your personal wallet

Finally, it's important to transfer your APE tokens from the exchange to your personal, non-custodial crypto wallet that supports ApeCoin. Storing your tokens in your own wallet gives you more control and security compared to leaving them on an exchange, reducing the risk of losing your assets in the event of an exchange bankruptcy or hack.

While buying ApeCoin on a crypto exchange is the most common method, there are alternative ways to purchase it, such as through peer-to-peer (P2P) exchanges or decentralized exchanges (DEXs). These methods may offer more flexibility in terms of payment options and the ability to trade directly with other users, but it's important to carefully evaluate the security and trustworthiness of the platforms and users involved.

ApeCoin's price history

ApeCoin (APE) is a fungible ERC-20 token with a maximum supply of 1 billion, or 10 billion according to another source, tokens. On its launch day, March 17, 2022, 30.25% of the tokens were in circulation. The price of ApeCoin started at $7.26 on its launch date, rising to $16.47 the next day. After a month of trading at about $13, the price of APE hit an all-time high of $26.19 towards the end of April 2022.

Holders of the Bored Ape Yacht Club (BAYC) NFTs could claim 150 million APE tokens from the ApeCoin site for the first 90 days after launch. Those who held a Bored Ape NFT were entitled to claim 10,094 APE coins, worth almost $300,000 at the April 2022 high. After this initial peak, the price of APE crashed to $13 in May.

Since then, the price of APE has fluctuated. On April 28, 2022, the price of APE was at its all-time high of BTC0.0006698. In contrast, on August 5, 2024, the price of APE hit an all-time low of BTC0.059429. As of September 2, 2024, the price of APE was $0.5662, with a 24-hour trading volume of $60,538,206.02. As of September 4, 2024, the price of APE was $0.58760725, with a 24-hour trading volume of $54.57 million.

ApeCoin's competitors

ApeCoin has a number of competitors in the crypto space. Here is a list of some of its top competitors and alternatives:

Sushi BentoBox

Sushi BentoBox is the closest alternative to ApeCoin. It is a token vault that generates yield for the capital deposited into it.

MoonFarm

MoonFarm is a decentralised finance (DeFi) and Centralised Finance (CeFi) hybrid yield farming aggregator. It provides users with a platform to buy, sell and trade multiple cryptocurrencies.

ReHold

ReHold is an innovative protocol that offers the first dual investments in DeFi. It provides high APRs and allows users to buy, sell, trade, and manage multiple digital currencies.

OpenSea

OpenSea is an NFT-based marketplace and one of ApeCoin's active competitors. It allows users to buy, sell, trade, and create NFTs, including digital art, music, images, GIFs, and videos.

Kraken

Kraken is a crypto exchange platform and a competitor to ApeCoin. It is a centralised exchange that allows users to trade a variety of digital currencies and tokens using U.S. dollars.

Magic Eden

Magic Eden is another competitor to ApeCoin. It is a blockchain-based marketplace platform for crypto collectibles and NFTs. It supports tokens related to arts, music, domain names, virtual worlds, trading cards, and more.

ApeCoin has a growing list of competitors and alternatives in the market, each offering unique features and functionalities to attract users and investors. It is important to conduct thorough research before investing in any cryptocurrency due to the high-risk nature of the market.

ApeCoin's potential risks

ApeCoin (APE) is a crypto token that powers the APE ecosystem, providing holders with access to exclusive events, games, services, and merchandise. It is a utility and governance token that was created to empower the community surrounding the APE ecosystem, which was built on the back of the Bored Ape Yacht Club (BAYC).

Volatility and High-Risk Investment

Cryptocurrencies, decentralized finance (DeFi), and other initial coin offerings (ICOs) are highly risky and speculative, and the markets can be extremely volatile. ApeCoin is no exception to this. Its price has fluctuated significantly since its launch, and it is subject to the same risks as any other cryptocurrency. Investors should be aware of the potential for rapid and significant losses when investing in ApeCoin or any other crypto asset.

Regulatory and Security Risks

The crypto market is largely unregulated, and the decentralized nature of cryptocurrencies can make them attractive to criminals and hackers. There is also the risk of fraud or security breaches, which could result in the loss of funds. Additionally, the anonymous nature of crypto transactions can make it difficult to recover lost or stolen funds.

Inflationary Model Concerns

Ben Lilly, a token economist at Jarvis Labs, has raised concerns about ApeCoin's inflationary model. He predicts that a large number of APE tokens will enter the market each month over the next year as Yuga Labs and the BAYC Founders unlock their allocated tokens. This could potentially lead to a supply glut and put downward pressure on the token's price.

Brand Value and Market Competition

The success of ApeCoin is closely tied to the brand value of Yuga Labs and the popularity of the Bored Ape Yacht Club. While the company has a strong track record, there is no guarantee that this popularity will be sustained. Additionally, the crypto market is highly competitive, and new projects or tokens could emerge that could challenge ApeCoin's market position.

NFT Market Uncertainty

The NFT market, which is closely linked to ApeCoin, is still relatively new and highly speculative. It is unclear if the NFT market will expand in the future, and there is a risk that it could experience a significant downturn. This could have a negative impact on the value of ApeCoin.

Celebrity Endorsements and Influencer Risk

Celebrity endorsements and influencer marketing have played a significant role in the popularity of ApeCoin and the Bored Ape Yacht Club NFTs. However, this also creates a risk of overexposure or negative associations. If celebrities or influencers who have promoted ApeCoin become embroiled in scandals or if their popularity wanes, it could have a negative impact on the token's value.

Frequently asked questions