Last Updated June 20th 2022
15 Min Read

ApeCoin has been one of the most talked-about cryptocurrencies of 2022 and one that seems to have divided opinion amongst industry insiders. The token was unleashed upon the world in March, making it one of the newest tokens out there. However, the brand behind the token has been on the scene a little longer. 

Due to its relative infancy, many analysts have had difficulty in pinning down just what ApeCoin’s intended purpose is. It appears to fit squarely into the meme token category, with its cartoonish ape mascot and obvious reliance on popularity and fostering an online community. But should investors be adding APE to their portfolios as soon as possible, or is it a better idea to see how the Apecoin hype unfolds? In this article, we want to give you a solid overview of Apecoin and how it stands as an investment opportunity. 

What Is ApeCoin?

Apecoin is an ERC-20 token that is pretty much just like any other. It can be used as a means of value exchange, as well as for just about any other application that Ethereum-based coins are capable of. At this stage, you may be wondering what’s so special about Apecoin and why it has been in the crypto headlines so much.

The answer lies in the fact that the token is an offshoot of the Bored Ape Yacht Club–one of the world’s most popular NFT marketplaces. And this is a big deal, given how online communities can drive the price of a cryptocurrency sky-high–as we’ve seen with other meme coins, such as DOGE and SHIB. 

However, despite clearly sharing similar branding, the team behind BAYC, Yuga Labs, has somewhat distanced itself from APE, which has its own DAO. It’s obvious that the two projects are interlinked and Yuga Labs have commented on the potential use cases of APE, but it’s important for investors to understand that, as things are, Apecoin is an independent project in its own right. 

Apecoin has been touted as a token for web 3.0. Its website claims it will be the perfect currency for metaverse, play-to-earn games, and e-commerce. It already has support from several play-to-earn titles and, of course, we can expect it to be an important currency for NFTs. However, at the moment, much of this appears to be conjecture. To get an idea of how APE stands as an investment opportunity, we need to dig a little deeper. 

ApeCoin: Key Facts

  • Launched in March 2022
  • An ERC-20 token
  • Designed for Web 3.0
  • An offshoot of the Bored Ape Yacht Club

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

A Closer Look At The Ape Project

ApeCoin is clearly linked to the Bored Ape Yacht Club, which itself is owned by parent company Yuga Labs. It seems that the wider project is looking to expand and at the time of writing is positioning itself as a potential innovator in the metaverse space. But what do we know about the elements that make up the Ape-themed project?

Yuga Labs

Yuga Labs was set up in February 2021 and is most widely known for having launched the Bored Ape Yacht Club a few months later. This proved to be hugely successful and Yuga Labs then launched further NFT offshoots, namely the Bored Ape Kennel Club (BAKC). Then they launched the Mutant Ape Yacht Club (MAYC). These ventures, with a little celebrity endorsement, proved to be hugely successful and Yuga Labs took some $127 million in revenue in its first year of operations. 

Yuga Labs has since acquired another huge NFT marketplace–Cryptopunks–and has signalled its plans to expand into the metaverse. However, the company’s objectives remain shrouded in mystery and there are few concrete plans that have been outlined and/or made available to the public. 

The Bored Ape Yacht Club

The Bored Ape Yacht Club was launched in April 2021, with a live presale event. The marketplace then opened proper in May. Essentially, BAYC is a collection of 10,000 non-fungible tokens, all of which are avatars of cartoon apes. The idea is that they can be bought and sold as collectibles, much like a digital version of trading cards. 

The NFT trend took many by surprise, with celebrities like Snoop Dogg, Justin Bieber and Tom Brady boosting BAYC’s popularity and sending the price of NFTs soaring. In fact, Bored Ape #8817 was sold at Sotheby’s for a staggering $3.4 million.

Apecoin (APE)

Apecoin emerged onto the crypto scene in March of 2022 and it was initially distributed amongst BAYC and Mutant Ape token holders, with 10,000 tokens distributed among the former and 2,000 among the latter. Presumably due to its association with the hugely popular BAYC platform, the Apecoin project struck some pretty lucrative partnerships almost immediately, including with Animoca Brands and nWayPlay which are both looking to implement ApeCoin for in-game purchases. 

As we’ve mentioned, Apecoin is intended as a currency for the Web 3.0 economy. As the Bored Ape ecosystem expands into a metaverse project, it is expected that Apecoin will become its main currency. However, once again, the tokens use case remains somewhat unclear at the time of writing. 

Read Also: Pros And Cons Of Investing In ApeCoin

Apecoin Partnerships And Projects

So as it stands, Apecoin is a somewhat unknown quantity. It certainly has generated a lot of interest from the global NFT communities–which in itself could be enough to generate significant momentum for the project. However, Apecoin has also struck several intriguing partnerships. 

Benji Bananas Games

Benji Bananas is a popular game from Animoca Brands that has existed in some form or another since 2013. Since its initial launch, the game is estimated to have been downloaded from various app stores some 50 million times, so it's safe to say it has a pretty large user base. The game is transitioning to a play-to-earn title and has partnered with Apecoin for its in-game purchases. Naturally, this could prove very lucrative for APE. 

nWayPlay 

nWayPlay is a games developer that’s been around since 2011 and has developed several popular titles, such as Power Rangers: Battle for the Grid and Battlepalooza. As is the case with many mobile-focused gaming platforms, the firm is currently moving into the play-to-earn market. A game is said to be in development with the Bored Ape Yacht Club and Apecoin has been confirmed as the currency that will power the in-game transactions. 

Degen Trilogy

In a somewhat unusual move, Coinbase has announced that it is working on a unique media project that will essentially be a trilogy of movies featuring a cast made up of Bored Ape Yacht Club NFTs. Holders are able to submit their avatars for a chance of having them cast in the films. Official releases mention the Apecoin community specifically, but as of yet it is unclear how exactly Apecoin will feature in the project. Nonetheless, Degen Trilogy is likely to garner a huge amount of media attention which, if nothing else, will certainly boost Apecoin’s profile. 

Otherside

Another exciting project in the pipeline is Otherside–Bored Ape Yacht Club’s upcoming metaverse project. The project is actually up-and-running but still very much in development. It essentially allows BAYC NFT holders to convert their tokens into playable characters and enter the Otherside. The game can be likened to a MMORPG that will allow players to trade, build and communicate.

Naturally, Apecoin is expected to be the primary token of the Otherside to be used for in-game transactions. 

 

Meme Coins - Are They A Good Investment?

Whilst the team behind it have avoided the term, it’s probably fair to refer to Apecoin as a meme coin. It may have dispensed with Shiba Inu references, but the token is clearly looking to build on the popularity of the Bored Ape Yacht Club and the reality is it has no real-world use case that make it stand out from any other ERC-20 token. 

The fact that a Bored Ape ecosystem appears to be developing places APE in a similar vein to Shiba Inu, which itself has grown from being a simple token for value exchange. However, despite expanding on its initial offering, it would appear that Apecoin’s future depends on its being able to build a loyal and sustainable online casino–which is pretty much true of any meme coin.

That being said, the fact that Apecoin is technically a meme token should not necessarily deter investors. Dogecoin proved in 2021 that these projects can undergo significant surges in value when their respective communities deliver an effective campaign. 

Investors do need to be aware, however, that meme coin prices are highly volatile–even by cryptocurrency standards. It is also true that online trends tend to come and go. Whilst Dogecoin experienced huge success in 2021, it should be remembered that it was all but forgotten about for many years. Investors looking to buy APE should accept that they are taking on significant risk. 

There are numerous meme coins on the market now, but it will probably pan out that only a small handful will ever attain significant success–especially from an investment perspective. However, Apecoin has hit the ground running and its profile remains extremely high…

 

How To Buy ApeCoin

ApeCoin is widely listed and, as an ERC-20 token, potential investors will have no issues in acquiring the token. If you want to buy Apecoin, you simply need to take the following steps:

  • The first thing you’ll need is a compatible wallet. As APE is an ERC-20 token, you’ll have plenty of options. MetaMask, for example, is recommended by many industry insiders. 
  • Next, you’ll need to find an exchange or broker that lists the token. We usually recommend eToro, as it is a hugely popular platform with excellent trading tools. 
  • Connect your wallet to your chosen exchange or broker.  
  • You can now buy Apecoin using fiat or cryptocurrency

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

ApeCoin In 2022

Apecoin launched in March 2022 and hit the headlines pretty much immediately. The token hit the market at around $8.54, but within three days it had surged to $12.99. It then dropped just as quickly, back down to $9.52 before news of this new cryptocurrency started to spread like wildfire. By the end of March, the token had soared to $14.19, representing growth of 65% in less than two weeks.

April was a month in which the Apecoin buzz truly took hold. The first wave of interest took the token to $16.81, all but doubling its value on the previous month. However, in the closing days of April APE surged to its all-time high of $26.70.

Unfortunately for Apecoin, it’s initial success was dampened due to the fact that it launched just a few weeks before a significant crypto market downturn struck, taking its token price down to $5.63 on 12 May. It initially started to recover relatively quickly, but the crypto market has since slumped again and, at the time of writing, APE was trading at just $3.39.

 Don't Miss: ApeCoin (APE) Price Prediction

Is ApeCoin A Good Investment?

The fact that the cryptocurrency market is so suppressed at the moment may be encouraging for many investors predicting a bounceback. Of course, there are no guarantees that Apecoin will be able to regain its previous momentum, but with developments such as the Coinbase media project, we think there’s every possibility that APE will get a second chance to make its impact.

To get an idea of what investors might expect from Apecoin, we checked out a few price predictions from leading industry analysts. DigitalCoinPrice seems to be highly cautious about APE’s future. It has the token reaching a modest $5.37 by 2023 and climbing reasonably slowly in the following years. Meanwhile, WalletInvestor’s technical analysis suggests a far more optimistic outlook for APE. It has the token reaching a potential high of over $15 in the opening weeks of 2023.

Of course, these price predictions are highly speculative, in either case. Apecoin’s future rests on its ability to gain ground early on. Whilst the Bored Ape Yacht Club is a hugely popular–and valuable–market place, it has yet to prove its longevity. Once again, this makes APE’s future hard to predict.

Those looking to invest in Apecoin at this stage should see it as something of a long shot. We’re all expecting the cryptocurrency market to come back stronger than ever eventually, but if NFTs or meme coins fall out of favour, it’s difficult to see how APE will build any major success.

 

ApeCoin In The News

There have been quite a few Apecoin news stories lately. Inevitably, a major subject has been the crypto market downturn. As both Ethereum and Bored Ape Yacht Club prices have plummeted throughout May and June, Apecoin has crashed that little bit harder than other metaverse/gaming-related tokens. 

Meanwhile, despite Ethereum facing its own issues of late, Apecoin holders have voted against migrating APE to another blockchain. According to Bloomberg, some 54% voted in favor of keeping the project on Ethereum. “Migrating to a different chain is a costly, risky, and complex endeavor with many moving parts that may, if not thoughtfully considered, result in catastrophic loss, or at worst, abandonment by Yuga Labs and other entities” that are important to ApeCoin, stated the proposal that was put to the vote. 

Finally, in June APE was listed as one of the most traded tokens amongst the biggest Ethereum whales in a 24 hour period. According to industry news reports, major wallet addresses traded some $20 million in APE over that time.

 

Conclusion

ApeCoin is something of a swerve ball for crypto investors. Whilst it certainly fits the meme coin mold, the fact that it is already integrated into several major projects–not least one of the world’s biggest NFT marketplaces–presents a different picture than we have from Dogecoin or Shiba Inu. 

Yuga Labs appears to be highly innovative and clearly has big plans for Apecoin. Whether these pan out to be successful or not remains to be seen, but at this stage most investors realise that popularity can convert to returns when it comes to cryptocurrency. Of course, popularity is notoriously hard to manufacture or predict, so investors will need to decide for themselves whether they want to take on the risk.

The price predictions we have looked at in this article suggest that Apecoin will bounce back with the wider market, though they differ on exactly how significant that bounceback will be. But it is certainly true that Apecoin is still making the headlines and there is still a huge amont of interest surrounding the Apecoin/Yuga Labs/Bored Ape projects. 

If you’re looking to buy into an up-and-coming token, then Apecoin is certainly worth considering. It has a lot of potential to be the ‘next big thing’ in crypto. However, the NFT trend could eventually run out of steam and that would leave Apecoin holders high and dry. If you do decide to invest in the token, make sure you have a good degree of diversification in your crypto portfolio. 

Open an account with eToro, deposit some funds with USD, and finally – buy Apecoin from just $10.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

ApeCoin FAQ

Is Apecoin a meme token?

Apecoin is generally considered a meme coin due to its emphasis on building popularity amongst its online community and its lighthearted branding. However, APE has already been implemented into several gaming and metaverse projects which, if they prove popular, could establish a more tangible use case for the token. 

Why is Apecoin so popular?

Apecoin seemed to explode out of nowhere, appearing in headlines around the world within days of launching. The reason for this is likely the fact that APE was distributed amongst Bored Ape Yacht Club token holders–and the BAYC has rarely been out of the crypto news over the past few months. 

What is the Bored Ape Yacht Club?

The Bored Ape Yacht Club is one of the world’s biggest NFT markteplaces. It is owned by Yuga Labs and the BAYC NFTs feature various ape avatars, each being completely unique. These NFTs are essentially like any other collectable, such as baseball cards, and have been known to command prices of several million US dollars. 

Is Apecoin a metaverse token?

Apecoin’s primary use case remains somewhat of a mystery at this stage but Yuga Labs has hinted at several major projects that will involved APE in some way or another. One such project is the Otherside metaverse, which is currently in the pipeline. It is expected that APE will be the currency of choice when the project launches proper. 

Is ApeCoin built on Ethereum?

ApeCoin is an ERC-20 token and as such it is compatible with all Ethereum-based projects. Due to Ethereum’s recent congestion issues, there was talk of migrating Apecoin to a new blockchain, but token holders voted in favour of sticking with Ethereum for the time being. 

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