What Is ApeCoin (APE)? Beginner’s Guide
ApeCoin (APE) stands at the forefront of cryptocurrencies, driven by a profound mission – the advancement and fortification of the decentralized web3. Born from the inspiration drawn from one of the most illustrious and prized NFT collections, the Bored Ape Yacht Club (BAYC), ApeCoin embarks on a journey to redefine the crypto landscape and its possibilities.
This comprehensive guide delves into the intricate details of APE, exploring its origins, functionalities, ecosystem, and use cases.
ApeCoin Guide – The Short Version
We cover the main talking points below:
- ApeCoin (APE) is an Ethereum-based ERC-20 token inspired by the Bored Ape Yacht Club (BAYC) NFT collection, aiming to advance the decentralized web3.
- APE was distributed through a substantial airdrop to BAYC and Mutant Ape Yacht Club (MAYC) NFT holders, granting them membership in the ApeDAO and utility in web3 projects.
- AIP-1 initiated APE’s development, involving stakeholders like Yuga Labs, Cartan Group, and the APE Foundation Board.
- APE has a fixed supply of 1 billion tokens distributed among NFT holders, the DAO treasury, Yuga Labs, project investors, and charitable contributions. Furthermore, its use cases range from governance to serving as a decentralized currency.
- The APE ecosystem encompasses various NFT collections, including BAYC, MAYC, BAKC, and the Otherside metaverse.
ApeCoin (APE) Definition
ApeCoin, denoted as APE, is an Ethereum-based fungible ERC-20 token showcasing its roots in the Ethereum blockchain.
Unlike traditional cryptocurrencies with intricate mining or purchase processes, APE made its debut in an unconventional manner. It was airdropped to individuals who held Non-Fungible Tokens (NFTs) from the BAYC or its sibling collection, the Mutant Ape Yacht Club (MAYC).
This distribution method marked one of the most substantial airdrops in crypto history, with BAYC NFT holders claiming over $100,000 worth of APE during its launch.
Possessing APE tokens grants individuals membership in the ApeCoin Decentralized Autonomous Organization (ApeDAO). As a result, it empowers users to actively participate in governing proposals and steer the direction of the APE community.
However, APE serves a dual purpose beyond governance. It also functions as a utility token, facilitating transactions in web3 projects, including games and metaverse realms.
Token Functionality and Distribution
APE’s versatile nature enables many applications, including governance participation within ApeDAO. It serves as a decentralized currency powered by the Ethereum blockchain, unifying spending opportunities within the community.
Holding APE can unlock exclusive perks like airdrops and real-world events. Additionally, developers of new blockchain projects, such as games and metaverses, can integrate APE into their ecosystems, fostering collaboration within the Bored Ape universe.
The APE token has a fixed supply of 1 billion tokens, secured perpetually by an Ethereum-based smart contract that prevents the minting or burning of coins. BAYC and MAYC NFT holders instantly received 15% of APE tokens at launch.
Furthermore, 47% of APE went to the DAO treasury, 15% to Yuga Labs, 14% to project investors and contributors, and 8% to the four founders of Yuga Labs and the BAYC. Additionally, 1% was donated to the Jane Goodall Legacy Foundation to support conservation and environmental initiatives.
ApeCoin Evolution
The ApeCoin Improvement Proposal-1 (AIP-1) was the catalyst for the project’s inception. This proposal set the groundwork for ApeDAO’s formation and outlined APE’s creative trajectory. The co-founder of Cartan Group LLC, a consulting firm based in the Cayman Islands, submitted it.
The APE token officially launched in March 2022 under the guidance of ApeDAO. Furthermore, it was distributed to NFT holders, the ApeDAO treasury, and stakeholders such as Yuga Labs, the Cartan Group, and the APE Foundation.
The foundation’s board features prominent figures like Reddit co-founder Alexis Ohanian, Yat Siu from Animoca Brands, and FTX investor Amy Wu. It also plays a pivotal role in effectively executing ApeDAO’s decisions, which APE token holders govern.
While Yuga Labs, the creator of BAYC, doesn’t control ApeCoin, the founders received a significant portion of the APE supply. Moreover, the company is listed as a project contributor.
The ApeCoin Ecosystem
APE token holders and an array of products and services that incorporate this cryptocurrency all comprise the APE ecosystem. Yuga Labs, renowned for creating the BAYC, significantly contributes to the APE ecosystem. Several notable NFT collections are part of this expansive realm:
- Bored Ape Yacht Club (BAYC): Launched in April 2021, BAYC comprises 10,000 unique Apes on the Ethereum blockchain. Each Ape features distinct attributes and rarity levels, making them coveted digital collectibles.
- Mutant Ape Yacht Club (MAYC): MAYC, with up to 20,000 mutated BAYC Apes, welcomes new members to the Ape community. Original BAYC NFT holders received 10,000 mutant serums through an airdrop, enhancing the rarity of their NFTs.
- Bored Ape Kennel Club (BAKC): Introduced in June 2021, BAKC comprises dog NFTs available to all BAYC NFT holders. Ape holders can adopt a Club Dog NFT by paying only the gas fees, adding an extra layer of uniqueness to their collections.
- Otherside Metaverse: Yuga Labs’ Otherside metaverse, launched in April 2022, witnessed an impressive success story. The minting of 55,000 digital real estate NFTs called “Otherdeeds” had APE pricing, accumulating over $300 million in ApeCoin transactions.
How to Buy ApeCoin (APE)
For those eager to acquire APE tokens, the process generally involves three fundamental steps:
- Sign up: Begin by registering on a cryptocurrency exchange platform like Binance, Coinbase, or Kraken. Provide essential information such as your email address, contact number, and username. Complete the email verification process and set a robust password.
- Complete KYC: In adherence to regulatory requirements, you might need to undergo Know Your Customer (KYC) verification. Upload the necessary identification documents, and your account will get confirmation shortly.
- Purchase APE: Deposit your chosen fiat currency into your exchange account and navigate to the APE trading section. Then, place your order to purchase APE tokens using your fiat funds.
Frequently Asked Questions
Do you have more questions about ApeCoin (APE)? Get more information below.
What is ApeCoin (APE)?
ApeCoin (APE) is a fungible ERC-20 token built on the Ethereum blockchain. It serves as a governance token within the ApeCoin Decentralized Autonomous Organization (ApeDAO) and as a utility token in various web3 projects, including games and metaverse ecosystems.
How was ApeCoin distributed initially?
ApeCoin (APE) started through an airdrop to individuals who owned NFTs from the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) collections. This unconventional method granted significant APE holdings to NFT holders.
What is the purpose of APE tokens?
APE tokens serve a dual purpose. They enable holders to participate in governance activities within ApeDAO, influencing the community’s direction. Additionally, APE functions as a decentralized currency, facilitating transactions and interactions within web3 projects.
Can I use APE outside the ApeCoin ecosystem?
You can use APE in various web3 projects beyond the ApeCoin ecosystem. Developers of blockchain-based games, metaverses, and other ventures can incorporate APE into their projects, fostering its adoption
What is the total supply of APE tokens?
APE has a fixed total supply of 1 billion tokens, ensured by an Ethereum-based smart contract. Token distribution occurred at launch, with allocations to NFT holders, the DAO treasury, project stakeholders, and philanthropic endeavors.
ApeCoin (APE) Explained – Last Words
With ApeCoin (APE), the crypto world witnesses a novel approach to token distribution, governance, and participation in the burgeoning metaverse. As the digital landscape continues to evolve, APE’s multifaceted utility positions it as a prominent player in shaping the future of decentralized finance and web3 interactions.
Please note that cryptocurrency investments carry inherent risks. Therefore, it’s essential to conduct thorough research and seek professional advice before engaging in any financial transactions.
