When the Apecoin went on sale in March 2022, there was great euphoria. In just a month and a half, the price more than tripled, from 8 to 26 USD. Today, the record high of that time, not much more than a year ago, seems like it was from another time. The cryptocurrency originating from NFT collection Bored Ape Yacht Club is currently trading at 1.92 USD, down 92 percent from its all-time high. Whether the course will find its old form again remains questionable. In addition to the summer doldrums and the loss of investor confidence caused by various scandals, which is still visible today, Apecoin also seems to be lacking in traction for domestic reasons.
Apecoin: Climbed high, fell low
As one of numerous tokens on the Ethereum blockchain, the so-called ERC-20 tokens, Apecoin is well connected within the Ethereum hemisphere. In addition, it should be used primarily around the Bored Ape brand. In addition to its payment function as a “utility token”, the cryptocurrency also serves as an entry ticket to the Apecoin-DAO, where project plans are discussed and voted on.
Incentives were initially created primarily by giving away token quotas to NFT holders. This reward system worked for a short time, also because the demand for the NFTs was at its peak. Since then, however, prices have fallen significantly, and with them the Apecoin course. Gradually, the question arises, not only for the NFTs: What’s next?
Eyes shut and go for it
For the company Yuga Labs, which sells one of the most successful NFT collections with the Bored Ape Yacht Club, the launch of its own cryptocurrency was obvious. Stars and starlets from the entertainment industry gave the Bored Ape brand a shine, which is now known worldwide, and the media attention was great, not only among NFT veterans. Despite many announcements – such as the metaverse “Otherside”, which is still in development today – and numerous side construction sites, the project continued to sink into self-discovery. And with it the Apecoin, for which there was no solid concept from the start.
As the currency “for what comes next”, Apecoin will still be used marketed. That was enough at first, but it’s becoming increasingly clear that today, like back then, nobody knows what it’s supposed to be that’s coming next. Not that there is a need for meticulously planned development goals in the crypto space. In contrast to memecoins, whose nonsense character is intentional, the expectations for the Apecoin were significantly higher. With a few exceptions, integrations and applications have so far fallen by the wayside.
A question of trust
The token was also and above all worthwhile for Yuga Labs itself. Almost a quarter of the entire inventory remained with the founding team and the company. This is not unusual if you read the fine print in the tokenomics of many coins. As a basis for what Yuga Labs calls the “Web3 economy” and the creation of cultural offerings – live events, art or games – but perhaps not optimally.
As a currency within an ecosystem that relies on exclusivity, Apecoin bathes the troubles of NFT collection. Unsuitable for mass use on the Web3, nebulous project goals on the other hand: As long as what comes next is in the rough, the Apecoin prospects are also hanging in the air.