Pros And Cons Of Investing In ApeCoin

Last Updated April 22nd 2022
15 Min Read

What are the pros and cons of investing in ApeCoin (APE)? ApeCoin is not like the cryptocurrencies you have gotten accustomed to over the years. Instead, ApeCoin offers something unique in the non-fungible token (NFT) space. 

Unlike Bitcoin (BTC), Litecoin (LTC), Dogecoin (DOGE), Dash (DASH), and Zcash (ZEC) which only settles transactions online, ApeCoin plays an integral role in in-game rewards in addition to being listed as a payment method in the mainstream. 

While this presents a great investment opportunity for millions of people, you must know that APE is still a cryptocurrency. Therefore, it is susceptible to the same volatility issues that have mired digital assets ever since Satoshi Nakamoto created Bitcoin in 2009. 

Since no investment in the crypto finance space is perfect, it would be in your interest to watch out for all potential red flags before investing in ApeCoin in 2022 and beyond. 

 

Key Points

  • APE is an affordable solution to making digital payments as well as in-game purchases in the NFT space. It can be used to facilitate transactions globally.
  • ApeCoin has forged partnerships with several players in the crypto finance space.
  • ApeCoin is led by Yuga Labs’ Bored Ape Yacht Club (BAYC) and the Mutant Ape Yacht Club (MAYC).
 



What Is ApeCoin? 

ApeCoin is an ERC20 token that is used within the APE Ecosystem. At the forefront of Web3, ApeCoin is housed in the Ethereum Network and thrives on the possibilities of Vitalik Buterin’s innovation to remain efficient. 

ApeCoin is a project inspired by Yuga Labs’ Bored Ape Yacht Club (BAYC) and the Mutant Ape Yacht Club (MAYC). The project was launched on March 17, 2022. 

ApeCoin effectively exists as three separate but interconnected things. 

  • ApeCoin Protocol: This is a platform that enables the creation of innovative applications in addition to being used as a digital payment network for the settling of financial transactions. 
  • APE: This is the novel token of the ApeCoin ecosystem that works on the ApeCoin protocol. 
  • ApeCoin Foundation: They handle the day-to-day decentralized autonomous organization (DAO) administration, manage proposals, and other tasks that ensure the DAO community’s ideas have the support they need to become a reality. 

The idea behind ApeCoin is to facilitate the building and maintaining of the APE ecosystem fairly and inclusively by providing the necessary infrastructure for APE holders to collaborate via permissionless and open governance processes.

Ordinarily, the centralized financial system has done a lot to help the global population but provided several hidden fees that were unknown to people. 

With that said, it takes days for representatives of these institutions to conduct background checks before an amount of money is credited to the account of a receiver. 

ApeCoin offers an alternative payment system that is relatively cheaper, instant, and secure so long as you have access to the internet. 

No matter where you find yourself across the globe, having a crypto wallet address means you can be a part of the global financial system.

Read More: What Is ApeCoin And How Does It Work?

 

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

Are You Ready To Invest In ApeCoin? 

Not long ago, ApeCoin was trending on the internet after bringing more than 3,800% gains to early investors, and over 1,000% returns to long-term investors. 

Slowly, the adoption of APE as a mainstream cryptocurrency is ongoing. It is projected that by the end of 2022, APE could be listed as a payment method by more than 10 mainstream companies. 

Today, APE serves patrons of the Bored Ape Yacht Club (BAYC) digital collectibles as well as being used for in-game purchases and the earning of rewards in the game Benji Bananas.  

For many crypto and blockchain analysts, ApeCoin has the potential of changing the way millions of people look at non-fungible tokens (NFTs).

So, to help you make an informed decision about ApeCoin, here are the pros and cons of investing in ApeCoin. 

If you want to know the pros and cons of investing in ApeCoin so that you can figure out whether or not to invest in APE, you are on the right platform to get your questions answered.

The Pros Of Investing In ApeCoin 

What are the benefits of investing in ApeCoin? 

When it comes to investing in ApeCoin, you should know that there are several pros you can consider that can guide your decision as a novice or beginner investor. Let us take a quick look at why APE is a good investment.

✅ ApeCoin Has Been Certified as Safe by Certik 

Certik is the leading security-focused ranking platform that monitors and analyzes blockchain protocols in addition to decentralized finance (DeFi) projects. Gaining the approval of CERTIK speaks volumes about the authenticity and credibility of a crypto project. 

As of writing, ApeCoin had a security score of 95 out of 100. The lowest score as per the score history from March 30 to April 17, 2022, was 92 on the third day of April this year. 

According to the findings of this security portal:

On-Chain Monitoring (ApeCoin is healthy, based on real-time transactional tracking systems with 100 points out of 100). 

Social Sentiment (ApeCoin is positive based on social monitoring and sentiment analysis). It holds a score of 91 out of 100. 

Governance & Autonomy (ApeCoin is strong based on checking the tracking of privileged movements). APE holds a score of 100 out of 100. 

Market Volatility (ApeCoin is robust based on indicators over trading volume, liquidity, and depth). ApeCoin holds a score of 96 out of 100. 

Safety Assessment (ApeCoin is good based on 15 safety and hazard evaluations). APE holds a score of 85 out of 100. 

Static Analysis (1 issue detected out of vulnerability and security checks). It has a 99 score out of 100. 

As has been seen from the statistics provided, ApeCoin has been verified as safe to use for developers who want to add to the APE ecosystem. 

For traders and investors, such security scores can also be reflected in the safety of investing in ApeCoin in 2022 and beyond. 

To put it simply, CERTIK has added credibility to the entire ApeCoin crypto project. Therefore, APE is a digital asset you should consider buying due to the possibilities of its ecosystem in the future. 

This is the primary reason why analysts at the Changelly Blog have made bullish predictions about the future price patterns of APE. According to the analysts, APE could command the best trading price of $50 by the end of 2022

The novel token behind the ApeCoin ecosystem could have a maximum price of $100 by the year’s end of 2030In the short term, APE could bring you more than 300% returns, and over 700% gains in the long term. 

✅ ApeCoin Has Recorded Impressive Trading Volume 

Trading volume plays an instrumental role in the survival of a new cryptocurrency in a market of more than 18,000 coins. 

As of writing, the combined trading volume of ApeCoin from the day of its launch was approximately $41.19 billionThis has made APE a medium-cap digital asset. With more than $3.2 billion in market capitalization, the APE project is more valuable than many well-known corporations. 

As investors continue to pour liquidity into APE daily, there is a huge chance that APE could thrive on this during another bullish run, and reach new price milestones in the process.

The more than $40 billion in liquidity within a month of trading has caught the attention of the experts at Coin Data Flow. According to the experts, if APE has 100% of Bitcoin’s previous average growth per year, the cryptocurrency could reach the best possible trading price of $42.01 by the close of 2023

By the end of 2026, if the aforementioned metrics are met, the experts believe ApeCoin could reach an all-time high price of $1,959.27In the short and medium-term, buying APE could bring you gains of 250% and 16,227% respectively. 

✅ ApeCoin is Extremely Popular

For a cryptocurrency exchange that celebrated a month of being considered a crypto trading asset, APE has become more popular than several existing digital assets. 

ApeCoin thrives on the Bored Ape Yacht Club project by Yuga Labs. BAYC has one of the most vibrant ecosystems in the entire NFT space. 

Overtaken only by Axie Infinity and CryptoPunks, it is the third most successful non-fungible token project in terms of sales. 

BAYC and the Mutant Ape Yacht Club continue to positively impact ApeCoin. 

In the future, should there be any news about the NFT project, the resultant effect will be a spike in the price of APE. 

In addition to this, APE's popularity soared with its exchange listings. The accessibility of exchanges plays a valuable role in their fortunes. 

A project like SafeMoon could not survive because of limited listings. 

It is one thing to find an exchange and it is another thing trying to find a regulated, highly reputable, secure, and highly liquid cryptocurrency exchange. 

Most of the exchanges that support APE for trading (eToro, Binance, Coinbase Pro, OKX, FTX, Crypto.com, BitMart, Kraken, and Kucoin) among others tick all the aforementioned boxes. Therefore, you should not worry about slippages or withdrawal problems. 

You can invest in APE using bank transfers, bank cards, or e-wallets such as Neteller, PayPal, Skrill, iDEAL, and Rapid TransferThe ordered APEs will be processed and completed within a short period.

The popularity of APE has made the trading gurus at Price Prediction.net make positive forecasts about the future price patterns of the token. According to the trading gurus, APE could command a regular trading price of $22.60, the least possible trading price of $21.99, and the best possible trading price of $25.65 by the year’s end of 2023

In the medium and long term, the crypto website foresees APE reaching the highest possible trading prices of $81.64 and $356.11 by the end of 2026 and 2031 respectively.

✅ ApeCoin Has Scarcity to Look Forward to 

During the launch on March 17, 2022, APE had a total supply of 1 billion coins. There are 302,500,000 APE in circulation, as of writing. This means that 697,500,000 APEs are yet to be released into the market. 

Out of the 302.5 million tokens in circulation, 277,500,000 are being traded in the market by millions of people daily. Around 25 million ApeCoins are still on the market for purchase. An impressive 91% has been taken off the 30.25% of APEs released to the general public in just one month. 

As the years roll over, the total supply of APE could become a circulating supply. Once this happens, the basic laws of demand and supply will set in. Traders are going to set the price of APE which could make the token less dependent on the Bored Ape Yacht Club. 

More importantly, APE could become more independent from the trading patterns of Bitcoin. Do not be surprised if scarcity takes APE to price milestones you never thought possible.

Analysts at the Coin Journal have zoomed into the discussion of ApeCoin Price Prediction in the short and long term. According to them, APE could reach the maximum prices of $50.63 and $238.63 by the close of 2025 and 2030 respectively. 

This means that investing in APE could see you with more than 300% in the medium-term and more than 1,800% in the long term. 

✅ ApeCoin Is Benefiting from Ethereum Upgrades 

Not long ago, despite the Bored Ape Yacht Club being housed in the Ethereum ecosystem, the team behind the ApeCoin project could have opted against Ethereum. 

This is due to Ethereum’s old network (proof of work) not being able to process more transactions. The resultant effect of this was realized via high transaction fees. 

As of April 2022, Ethereum looks certain to become a proof-of-stake (POS) network before the end of 2022. 

Despite the relatively slower progress in this transition, Ethereum has made several upgrades that continue to benefit ApeCoin and other applications on its network. 

Among them is the EIP-1559.

This upgrade, popularly termed “London HardFork” has changed how transaction fees (or technically termed gas fees) are calculated. The EIP-1559 has strengthened the ecosystem of Ethereum which is known for powering decentralized finance protocols and applications as well as non-fungible tokens. 

Overall, this upgrade has made every aspect of Vitalik Buterin’s innovation exciting to use. The resultant effect of this on APE has been its involvement in many transactions per second. 

Aside from that, transactions involving APE are relatively cheaper thanks to the new way of calculating fees brought forth by this great upgrade. Once Ethereum becomes a proof-of-stake network, you should know that APE automatically moves from being categorized as a POW coin to a POS token. Once this happens, ApeCoin will be processing at least 100,000 transactions daily. 

The upgrades and transition have caught the attention of the trading gurus at Crypto AcademyThey believe investors should prioritize adding APE to their portfolios with an eye on the medium term. According to them, ApeCoin could be trading at a new all-time high price of $150 by the end of 2025.  This means that investing in Apecoin today could see you with at least 1,150%. 

 Don't Miss: ApeCoin (APE) Price Prediction

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

The Cons Of Investing In ApeCoin 

What are the drawbacks of investing in ApeCoin? 

Like any investment involving cryptocurrencies, ApeCoin is not free of risks. Let us consider some of the drawbacks of investing in ApeCoin that will embolden you to know if ApeCoin is a digital asset worth investing in. 

❌ ApeCoin Relies on the Price Patterns of Bitcoin 

Despite its young trading history, the cryptocurrency has demonstrated signs of going along with the price patterns of Bitcoin

Although APE was new on the market which explains why investors poured liquidity into the token in the last two weeks of March 2022, the entire market tried to recover in the same period. This means that APE has not found the independence it requires to become a successful cryptocurrency. 

Understandably, Bitcoin controls the market. However, BTC reached an all-time high price of $64,863.10 on April 14, 2021. By the end of May of the same year, BTC dropped to a new low of $37,332.85. 

On the other hand, Ethereum began April 2021 at $1,919.16 and reached a new all-time high price of $4,362.35 on May 12, 2021. This is a sign of Ethereum showing some form of independence from the digital gold. 

ApeCoin is young and would need time to prove its worth in the market. If we are to make an investment decision on its future price patterns, then we can say it will go up if BTC goes up. Once a token cannot find its path in this market, the token could trade in recoverable zones for a very long time.

❌ ApeCoin Faces Competition from Up-and-Coming Projects 

The greatest thing that can happen to a new cryptocurrency is seeing billions of liquidity within the first two weeks of its launch. After that happens, if the token can still see trading volumes of $100 million daily, then the project has a chance of surviving. This is because new coins are being added to the market daily. 

As of writing, there are more than 18,900 tokens in the market. By the turn of the New Year, there were less than 18,000 coins in the market. 

ApeCoin is one-month-old but would be facing strong competition from new projects in 2022. 

The token is currently being backed by its airdrop event that runs through to the middle of June 2021. Once the promotion ends, there could be a decline in the number of unique buyers for the Bored Ape Yacht Club and the Mutant Ape Yacht Club (MAYC) collectibles. 

In the long term, this could impact BAYC negatively. 

A great example can be attributed to the total number of unique buyers of BAYC in March 2022 which was 669This was an increase of 75% in the 381 unique buyers recorded in February 2022. As of writing, the unique buyers for April 2022 were 177. 

Should April’s figure fail to surpass March’s, the total sales for BAYC could fall in the coming months. Once this happens, APE may not break out of trading below $20 for a very long time. 

❌ ApeCoin Is Not an Independent Blockchain 

ApeCoin is housed in the ecosystem of Ethereum and this brings the project several benefits. Some of these benefits include but are not limited to APE interacting with stablecoins, decentralized applications (DAPPs), decentralized oracle networks, non-fungible tokens, and decentralized cloud storage networks. 

On the other hand, you should know that Tron (TRX) and Binance were ERC20 tokens when they branched into the crypto finance space. Unfortunately, they faced several issues with the use of Ethereum’s ecosystem. 

At the time, the primary issue was scalability which was reflected negatively in transaction fees.

As of writing, Tron and Binance are neck-and-neck with Ethereum in the decentralized finance and non-fungible token space. 

Tron may command a relatively lower price but continues to record more volume in the transaction count of the United States Dollar Tether (USDT) than any blockchain in the space today. 

Binance Smart Chain (BSC) also competes with Ethereum (PancakeSwap has been the direct competitor of Uniswap) since 2021. BSC is also active in the NFT space and records impressive volume periodically. 

After assessing the impact of TRON and Binance as independent blockchains, you should know that ApeCoin is limited in many ways. The ApeCoin Foundation can improve its ecosystem but it would not be the same as having control over the blockchain their protocol runs on. 

Tron and Binance are some of the best protocols when it comes to processing thousands of transactions. 

ApeCoin is relying on Ethereum to become a proof-of-stake coin while TRX and BNB benefit from the possibilities of their respective chains. 

In the not-too-distant future, ApeCoin will need to find independence or will see its limitations reflect negatively on the valuation of the entire project.

❌ ApeCoin’s Real Valuation is Unclear 

If someone told you Bitcoin will have a trillion-dollar economy, you would not have believed that person. If another person told you that at some point in time that Dogecoin will be more valuable than Fortune 500 corporations, you would have laughed it off. That is the reality of cryptocurrencies. 

With that said, it took 10 years for Bitcoin to gain such a milestone. It took Dogecoin more than 7 years before attaining such capitalization. 

ApeCoin has the backing of major players as well as the support of one of the most successful crypto projects in the space today. That does not mean that ApeCoin will become a hit within the months leading up to the end of the year or beyond it.

The project is young. It needs to go through several price corrections and resistance before the milestones being forecasted by experts could be ascertained. 

The newness of the project is the primary reason why analysts at Tech News Leader do not see any future for ApeCoin. According to the analysts, ApeCoin could drop to $0.39 by the end of 2022 and increase slightly to $0.56 during 2023In the medium term, they believe ApeCoin could trade for $1.53 in 2026, and rise to $9.44 by the year’s end of 2031.

Will ApeCoin Be A Millionaire Maker? 

ApeCoin could become a millionaire-maker depending on two factors. They are the amount of money you are willing to invest and the price milestone ApeCoin could reach that can see your millionaire status come to fruition.  

Being a finite resource, the value of APE could increase significantly as scarcity normally leads to a spike in the price of a cryptocurrency. 

Let us use simple mathematics and percentage change to guide you into an ApeCoin millionaire.

At $12, you will need to buy around $100,000 worth of APE. 

This will get you 8,333.33333333. If APE reaches a valuation of $120 someday, your 8,333.33333333 ApeCoins multiplied by a price of $120 equals $1,000,000 ($1 million).

On the other hand, you can buy $200,000 worth of ApeCoin. This will get you 16,666.666666666 ApeCoins. 

Should APE reach a valuation of $60 someday, your holdings multiplied by the new price equals $1,000,000 (millionaire maker). 

With the statistics provided, ApeCoin could make you a millionaire.

Check Out: What Might Happen If You Invest $100 In ApeCoin Today?

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

Conclusion: So, Is ApeCoin (APE) A Good Investment? 

According to 95% of the analysts, experts, and trading gurus, ApeCoin is a good investment

With that said, you should know that cryptocurrency investments come down to two factors and they are risks and rewards. 

You should never forget to find an answer to the question, do the potential rewards of investing in ApeCoin outweigh the possible consequences of the risks of investing in APE? 

ApeCoin certainly has some risk factors (it’s a relatively new project and relies too much on the Bored Ape Yacht Club). On the other hand, ApeCoin is gaining acceptance in the real world with its listing by TIME magazine as a payment method for digital subscribers. 

In addition to this, APE still commands a trading price that is relatively smaller than most competing coins in the top 50 rankings by market capitalization. 

Put simply, ApeCoin is a low-risk investment with lots of potential rewards. It’s something you should definitely do some research before you consider adding ApeCoin to your portfolio.

But before you invest in APE, you should conduct independent research that will be used as a supplement to the resourceful information found in this article. Investing in APE has worked for millions of people, it could work for you too. 

Now that you know the pros and cons of investing in ApeCoin, if you are feeling inspired enough to risk some funds on the token, eToro provides the chance to trade APE on their platform. 

How To Invest In APE Through eToro 

When it comes to investing in APE through eToro, you should be prepared to go through an extensive verification process. 

The first step is to create an account. You have to enter legal details of your full name, home address, phone number, and email address. 

open trading account

The second step is to verify your account. You have to upload scanned copies of a government-issued identification card that confirms the details of earlier input. You also need to upload a bank statement, utility bill, or credit card statement. This will help show proof of residence. 

etoro account verification

The third step is to deposit funds. Choosing from a range of payment methods, you can deposit an amount of money that meets your investment goals. 

fund account

The last step is to navigate to the APE page. You can order several APEs and they will be processed and added to your crypto portfolio.

etoro apecoin trading page

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

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

Read More:

Is ApeCoin (APE) Safe To Invest In?

Should You Buy ApeCoin (APE)? 5 Pros, 5 Cons

Will ApeCoin (APE) Make Me Rich?

How To Make (Or Lose) Money With ApeCoin

14 Reasons Why You Should Invest In ApeCoin (APE) Today