Let’s analyze the merits and downsides of investing in this highly hyped token that is associated with the Bored Ape Yacht Club.
There has been a lot of hype around NFTs since 2021. Even as the crypto market turned bearish in November 2021, NFTs continued to gain value exponentially. One NFT collection that has particularly drawn a lot of investor attention is the Bored Ape Yacht club. The hype around the Bored Ape Yacht Club is so high that when ApeCoin hit the market in March, it rallied by over 2000% in under 24-hours.
While ApeCoin has dipped and turned highly volatile since it is still drawing a lot of investor attention. As of April 4th, ApeCoin is ranked 46th with a market capitalization of $3.35 billion.
Is ApeCoin a good investment in 2023? Let’s look at both the pros and cons of the ApeCoin cryptocurrency to find out.
ApeCoin’s Positive Characteristics
One of the biggest strengths of ApeCoin is that it is drawing all the hype. Hype is a big factor in crypto, and this is evident in the massive success that both Shiba Inu (SHIB) and Dogecoin (DOGE) recorded in 2021. Now that all eyes are on ApeCoin, it will make a good investment in 2023.
Another potential event that could boost ApeCoin’s price is the possibility of a listing on other major exchanges, such as Robinhood. The users of this famous platform are young and vocal during the exploding of meme stocks and coins. The same type of retail investors who often are interested in investing in ApeCoin. The more exchanges list the coin, the more demand will be added. That will support the price of ApeCoin at least in the short to medium term.
Exchange listings are a big deal for cryptocurrencies as they help drive volumes and impact the price. ApeCoin made history when it got listed on all major exchanges simultaneously when it first hit the market. Currently, ApeCoin is available on Binance, Coinbase, eToro, and other high volume exchanges.
ApeCoin also has the catalysts that could see it grow in utility. With the Bored Ape Yacht community now among the most important in the NFTs world, ApeCoin gives holders a say in how the ApeCoin DAO is run. Besides, investors can stake ApeCoin and earn a passive income, making ApeCoin highly attractive to long-term crypto holders.
Staking pools are already coming up with the latest one being vEmpire. vEmpire has launched an ApeCoin staking pool with triple-digit yields. For such returns, the hype around ApeCoin is likely to remain strong all through 2023.
Looking at the bigger picture, ApeCoin has a lot of room to grow going into the future. With all the hype it has generated and its integrations in gaming, ApeCoin, and the Bored Ape Yacht Club have what it takes to take over the NFT market. This includes the fast-growing play-to-earn gaming space. This is a factor that could add some significant value to ApeCoin prices going into the future.
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.
Why Stay Away From ApeCoin
One interesting aspect of ApeCoin is the connection or lack of it to Yuga Labs, the VC-funded company that now controls the IP to the highly valued Bored Ape Yacht Club NFTs. Essentially, the ApeCoin DAO holders of ApeCoin can vote on may have zero bearing on the Bored Ape NFTs. This would put ApeCoin’s position as an investment in a precarious position long-term.
Still on ApeCoin DAO, even if ApeCoin token holders are to vote on anything regarding bored Ape NFTs, they can only vote on minor issues that have no relationship to the core IP of the Bored Ape Yacht Club. For any meaningful voting on project direction, truly decentralized cryptocurrencies like Cardano, Ethereum, and Solana offer more value to investors. Besides, such cryptocurrencies are more time-tested and have a solid history. On this basis, Ethereum and Cardano could be better high-potential cryptocurrency investments in 2023 and beyond.
Essentially, ApeCoin is still highly speculative, and hype is never a good strategy to base investment decisions. For long-term wealth creation, time-tested cryptocurrencies that have utility are the best.
ApeCoin is highly volatile at the moment, and on April 4th, is down by 6%. With the market not yet in the clear after a bear run earlier in the year, it makes sense to stay away from ApeCoin, at least for now.
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.
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