ApeCoin (APE) is one of the top altcoins
Before investing in the novel token of the ApeCoin ecosystem, investors should understand the pros and cons of buying ApeCoin.
ApeCoin is a cryptocurrency that was born out of the non-fungible token (NFT) project of Bored Ape Yacht Club (BAYC). ApeCoin is the first NFT-backed digital asset.
So far, the people behind the ApeCoin ecosystem are unclear. This is because Yuga Labs, the team behind the creation of BAYC and Mutant Ape Yacht Club (MAYC) has distanced themselves from the project.
With that said, ApeCoin is an ERC20 token that is housed in the Ethereum network.
The ApeCoin community has become one of the most vibrant voices in the space today as they aim to use the token to introduce millions to the possibilities of NFTs.
ApeCoin is a top 50 cryptocurrency by market value. It is categorized as a medium-cap digital asset due to having more than $1.49 billion in market capitalization.
Should you buy ApeCoin? What are the pros and cons of ApeCoin? Is it worth investing in ApeCoin?
ApeCoin continues to see millions of dollars in daily trading volume. This is why many analysts believe APE is destined for new price milestones in the future.
If you invested $100 in APE in March, by April 2022, you would have $1,200 worth of ApeCoins.
But were these gains a mirror of Internet Computer (ICP) of 2021? Or, can ApeCoin (APE) retest new high highs that can make crypto investors dream again?
Is ApeCoin (APE) The Next Shiba Inu (SHIB)?
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The 3,840% ApeCoin gains in March were mind-boggling and this drove millions of novice and experienced investors to the token.
The ApeCoin project has seen considerable hype within the last month.
As a crypto investor, you must guard yourself against emotional trading. Before you commit your resources to APE, conduct independent research about the pros and cons of investing in ApeCoin.
Timing is highly essential when investing in crypto. The experienced crypto investors combine fundamental and technical analysis before buying ApeCoin.
This article looks at five pros of buying ApeCoin (APE) and five cons of buying ApeCoin (APE).
By the end of the article, you can infer from the resourceful information obtained to help you answer the question, is it worth buying ApeCoin (APE)?
Pro #1: ApeCoin Thrives On A Valuable Brand
Currently, there are more than 21,500 cryptocurrencies on the market. More than 1,000 cryptos have been added to the crypto finance space in 2022 alone.
Because of the fortunes that could be made from digital assets, many developers have created tokens that do not have strong innovative technologies behind them. By the end of the year, there is a huge chance that most of the tokens added in 2022 could become worthless.
An ecosystem such as ApeCoin’s that could add more decentralized applications to the decentralized finance space has the potential of rising above the competition.
The introduction of the Bored Ape Yacht Club (BAYC) collectibles in April 2021 has transformed global sales of NFTs.
The BAYC brand reached an all-time high in sales volume in August 2021 where it recorded around $297 million. At one point in time, BAYC reached a single-day high of approximately $55 million.
In 2022, the extensive demand for some of the 10,000 unique Bored Apes saw the record for sales volume broken in the first month of the year. In January 2022, BAYC recorded around $311 million in sales volume.
A bearish engulfing of the market in 2022 caused a drop in sales.
Despite this, BAYC still records more than $100 million in monthly sales.
Yuga Labs owns BAYC and MAYC and acquired digital collectibles CryptoPunks in March.
The news impacted BAYC positively, which saw a 106% spike in February’s volume to close March at approximately $227 million.
The effect of the NFT projects linked to the ApeCoin ecosystem has helped APE gain traction on social media.
ApeCoin has thousands of followers across social media platforms.
Twitter: ApeCoin Twitter
Telegram: ApeCoin & MFRM Announcements
Facebook: ApeCoin – Home
As of writing, ApeCoin has not introduced any real use case that analysts can point at to make a case for the project.
But with time, just like Shiba Inu added ShibaSwap to its ecosystem, ApeCoin could do the same.
Once this happens, APE could break into the top 10 digital assets by market capitalization.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Con #1: ApeCoin (APE) Is Highly Volatile
Crypto is categorized under a highly volatile asset class. ApeCoin, like most cryptocurrencies, experiences multiple percentage changes daily.
APE became a crypto trading asset on March 17, 2022, and had the approval of most of the major players in the exchange space. On that day, APE opened at $1.
With billions of dollars being poured into the cryptocurrency, ApeCoin rallied to an all-time high price of $39.40, a 3,840% in a few hours.
Seeing the fortune APE has brought them, many investors decided to sell off their APE holdings.
This saw a 78% drop to a new low of $8.52 by the close of the day. The new high APE attained after experiencing such a sharp decline was $15.49 on March 28, an 81% increase in 11 days.
APE closed the third month of the year on March 31, with a price of $12.69.
APE opened in April 2022 at $12.70, reached a monthly high of $12.89 on April 3, and continues to trade between $1 and $39.40 in 2022.
To give you a real-life scenario of APEs volatility, follow the example below.
Suppose you purchased $10,000 of APE when it opened at $1, you could have purchased 10,000 ApeCoins.
Let’s say you wanted to hold the tokens till the end of March and see where it would take you.
Within hours, APE shot up by 3,840% which took your investment capital to $394,000.
After several minutes of selling, APE dropped to the region of $8, and this saw the worth of ApeCoins drop to $80,000.
By the end of the month when you return to your investments, you realize your initial investment of $10,000 has matured to $120,690.
Although you will be happy at first, studying the charts, and knowing you have made a profit of $110,690 but lost $273,310 in potential gains will change your perspective of the volatile nature of digital tokens.
Therefore, if you want to buy ApeCoin (APE), consider what could happen if the supposed selling pressure engulfs the market.
APE has been conservative in April and one big sell-off could see the token head south.
Don't Miss: ApeCoin (APE) Price Prediction
Pros #2: APE Has The Support Of High Volume Exchanges
It is extremely rare to see a token gain the support of all the major cryptocurrency exchanges before being launched.
Prior to being considered a tradable token, Binance announced it will open trading for APE/BTC, APE/USDT, and APE/BUSD pairs. eToro confirmed APE will be listed on their platform for trading on its launch day.
On March 16, Coinbase announced via their Twitter handle that they will add support for APE. On the same day, FTX announced through an article that they will be listing support for ApeCoin (APE).
In addition to this, these exchanges are highly regulated, secured, have great reputations, process millions of orders, support many payment methods, and have many cryptocurrencies to pair APE with.
This way, any trader who takes a stake in APE will not fall victim to slippages since millions are pouring liquidity into the cryptocurrency.
Once APE can be found on at least 40 exchanges, it is very easy for millions to buy the token during a bullish season, and help take it to new all-time highs.
Check Out: The Best Places to Buy ApeCoin (APE)
Con #2: Lack Of Real-World Utility
In less than one month of trading experience, the token relies on speculation (forces of demand and supply) and the impact of the Bored Ape Yacht Club to determine its real value.
All forms of currency have six attributes that confer value on them. Digital currencies have these attributes.
Aside from being transferable, scarce, durable, non-counterfeitable, divisible, cryptocurrencies have the utility attribute.
This means that it should be able to pay for goods and services through the faith residents of specific geographical locations have in them.
Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Tronix (TRX) have been integrated with several merchants worldwide.
This is why these cryptocurrencies are involved in millions of transactions daily.
Unfortunately, ApeCoin (APE) has not been supported as a payment method by any mainstream company.
Once this happens, we will get to know the number of transactions the ApeCoin ecosystem can handle per second.
This is because it is held in the Ethereum ecosystem and Ethereum is still making steps to achieve a full transition to a proof-of-stake (POS) network.
ApeCoin needs to take the approach of protocols such as Shiba Inu. Innovation in the Shiba ecosystem has seen SHIB involved in transactions on its decentralized exchange (DEX), ShibaSwap in addition to other use cases.
If ApeCoin relies on BAYC and speculation, the token could trade below 90% of its all-time high in the future.
Pro #3: ApeCoin Is Relatively Cheaper
Millions of people are searching for the next golden goose.
When Bitcoin (BTC) came along, it traded for less than $10 but currently, it is trading for around $21,000. Then there are Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) which also reached new price milestones in 2021.
As of writing, APE’s price is 4,300 times that of Bitcoin, 320 times that of Ethereum, 59 times that of Binance Coin, and 6.5 times the price of Solana.
This makes APE a low barrier of entry depending on the amount of money you are willing to spend.
Many novices or beginner traders should take note of percentage change as this plays a crucial role in potential earnings.
With a capital of $10,000, you can buy 2066 APEs at $4.84.
The same amount can only get you around 0.476 BTC, 6.45 ETH, 34.8 BNB, and 317.25 SOL.
This means that should there be a spike in the price of APE to around $20, you stand a chance of seeing your $10,000 investment mature to $41,320.
At such relatively higher prices, Bitcoin will need to double to around $42,000, Ethereum to around $3,000, Binance Coin to around $570, and Solana to around $62 before you can double your investment. In such a scenario, your $10,000 investment will mature to $20,000.
You can take advantage of the current price of APE and buy more. In a bullish season that mirrors the performance of tokens in May and November 2021, you could become one of the biggest crypto gainers.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Con #3: ApeCoin Faces Stiff Competition From Thousands Of Tokens
As of April 2021, there were around 14,000 cryptocurrencies on the market. Currently, there are more than 21,500.
As of writing, there are 17 upcoming Initial Coin Offerings (ICOs), 6 are ongoing, and 1110 have ended.
Aside from these, developer activity continues to soar, and this could see more decentralized protocols and applications (DAPPs) added to the market.
Since DAPPs such as Uniswap (UNI), PancakeSwap (CAKE), Lido (LDO), Yearn Finance (YFI), and Compound (COMP) have tradable tokens, incoming DAPPs will add more coins to the already saturated market.
This does not bode well for APE as daily liquidity is spread out across several coins.
In addition to competition from mainstream tokens, several NFT projects will be launching native assets to support their projects. This will not leave ApeCoin as the sole token behind one of the best-selling digital collectibles.
Once there is an announcement of new tokens that features promotions such as airdrops, and other benefits, millions of traders will consider that token.
This is because the launch of new tokens provides a golden opportunity to make a huge fortune within a short period.
Although cryptocurrencies continue to gain mainstream attention, no one truly knows what will happen in the future. Therefore, invest in APE with caution so that you would not lose your entire investment.
Pros #4: APE Has The First-Mover Advantage
Having the backing of Bored Ape Yacht Club (BAYC) is not the sole reason why APE continues to see huge investor interest.
Like the novel tokens of Bitcoin and Ethereum, APE is the go-to token for NFT lovers.
In the future, if NBA TopShots, the World of Women, Adidas Originals, or other NFTs decide to launch tokens, they could all be in the shadow of APE.
Currently, APE has a daily volume of more than $200 million. With millions of people still trying to make sense of what digital collectibles entail, it would not be surprising to see a substantial increase in trading volume going forward.
This will result positively in the price patterns of the novel token behind the ApeCoin ecosystem.
Con #4: ApeCoin Is Not An Independent Blockchain
As an ERC20 token, ApeCoin runs on the Ethereum Network. Inasmuch as ApeCoin continues to enjoy the benefits of being part of Ethereum’s ecosystem, some limitations come with not owning the blockchain you run on.
A great example of this can be attributed to Binance. When Chanpeng Zhao launched his innovation in 2017, it was an ERC 20 token too.
Since Ethereum is the first smart contracts-backed technology, all roads led to Vitalik Buterin’s innovation in the early days of decentralized finance (DeFi).
Unfortunately, Ethereum had scalability problems that made it difficult for the protocol to process many transactions.
Seeing the disadvantages that come with being housed in an ecosystem you do not control, Chanpeng Zhao moved his project to the Binance Smart Chain in September 2020.
As of April 2022, Binance competes with Ethereum in all aspects of the space. Its top decentralized application, PancakeSwap, is the direct competitor of Ethereum’s Uniswap. More importantly, Binance Smart Chain has more than $5.58 billion in total value locked (TVL).
Another example can be attributed to Justin Sun’s Tron. The crypto project also started as an ERC20 token but later moved into an independent blockchain which saw thousands of transactions processed per second. Tron has more than $5.49 billion in total value locked (TVL).
Without an independent blockchain, ApeCoin is losing potential decentralized applications under the lending, yield aggregation, exchange, and insurance banner among others.
All relevant projects in addition to the aforementioned such as WAVES, Fantom, Solana, Cardano, Polkadot, and Algorand run on independent chains.
If the team behind ApeCoin does not consider moving to a chain they can control, especially, with the issue of scalability, it could hurt the chances of the tokens in the not-too-distant future.
Pro #5: Developers Are Being Incentivized To Contribute To The Ecosystem
There is no single project in the decentralized finance space that can survive without the assistance of third-party developers.
This is why there are periodical programs such as Hackathons that incentivize developers to create protocols under different categories in the DeFi space.
Third-party developers have been participating in the ApeCoin ecosystem by integrating APE into projects, games, and other services.
A great example can be attributed to the use of APE in the Benji Bananas game by Anomica Brands.
You can buy a Benji Bananas Membership Pass with 25 ApeCoins. This allows you to swap your APE for an in-game token.
As developers find more ways to integrate APE in their products and services, APE is going to move from not having mainstream use cases to finally breaking out into being used as transactional currencies by millions.
Once this happens, the price of APE will head north.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Con #5: Does Not Have A Long Trading History
APE and the entire ApeCoin ecosystem are still considered a novelty. APE is less than one year old, as of writing, and this does not help analysts to use fundamental and technical knowledge to make assessments about future forecasts.
Many people have started buying the token without knowing what it entails.
With time it will be easier to understand the real price patterns of APE. This will help us know if it has a chance of overcoming its all-time high or, like several coins, if it will continue to trade below 70% of its all-time high price.
Recap Of Should You Buy ApeCoin (APE), 5 Pros, 5 Cons
In its one month of existence, ApeCoin continues to divide opinions across the cryptocurrency investing space.
Is ApeCoin a good investment and should you invest in it?
The pros and cons of ApeCoin (APE) are:
Pros of ApeCoin (APE)
- ApeCoin thrives on a valuable brand.
- ApeCoin has the support of high-volume exchanges.
- ApeCoin is relatively cheaper.
- ApeCoin has the first-mover advantage.
- ApeCoin incentivizes developers to contribute to its ecosystem.
Cons of ApeCoin (APE)
- ApeCoin is highly volatile.
- APE lacks real-world utility.
- ApeCoin faces stiff competition from thousands of tokens.
- ApeCoin is not an independent blockchain.
- APE does not have a long trading history.
Due to the popularity of APE and the enormous investor interest it continues to see, it seems the pros outweigh the cons of buying ApeCoin.
The token’s moderate price and availability on all the major exchanges is a huge plus. As the ApeCoin ecosystem adds more products, the valuation of APE will grow as well.
In the crypto finance space, coins will always remain unpredictable. The lack of mainstream use cases as well as the lack of running on an independent blockchain will see APE struggle for some time.
In the end, the forces of demand and supply will still be the primary factor that determines the price patterns of APE. Investing in ApeCoin and cryptocurrencies, in general, comes with huge risks. Use the information found here as a supplement to independent research that would be conducted by you.
With this, you will be in a better position to determine if APE is an asset you should consider having in your investment portfolio. If you choose to invest in ApeCoin, due to the volatile nature of cryptocurrencies, buy an amount of APE you can afford to write off as bad debt.
eToro — Top Platform To Buy ApeCoin
Open an account with eToro, deposit some funds with USD, and finally – buy ApeCoin from just $10.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs
Is ApeCoin (APE) a good long-term investment?
Yes, ApeCoin can be considered a good long-term investment according to analysts at Price Prediction, Digital Coin Price, and Changelly. Experts at Digital Coin Price forecast APE to reach $13 by the end of 2025. Analysts at Coinpedia project APE to reach $59 by the year’s end of 2025.
Therefore investing in APE today, could see you with at least a 260% increase in the medium to long term.
Where can I buy ApeCoin (APE)?
You can buy ApeCoin on eToro, Binance, OKX, Coinbase Pro, Huobi Global, FTX, and Gate.io among others.
Can ApeCoin (APE) Make Me a Millionaire?
ApeCoin could make you a millionaire if you consider the current price, the total number of coins you can buy, and the price that APE needs to reach to make you a millionaire.
If you can buy 50,000 APE tokens, you can become a millionaire when APE reaches $20.
If you can buy 100,000 APE tokens, you can become a millionaire when the token reaches $10.
If you can buy 20,000 APE tokens, you can become a millionaire when the coin reaches $50.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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Best Methods On How To Earn ApeCoin (APE) Fast