BAYC’s ApeCoin has slumped over 70% from debut high already

Key Takeaways:

  • Yuga Labs, team behind popular NFT project Bored Ape Yacht Club, launched a new crypto ApeCoin on Mar 17.
  • APE's prices have fallen nearly 75% from their day high.
Yuga Labs' ApeCoin (APE) has been down by nearly since its launch last week. Image from freepik and BAYC
Yuga Labs’ ApeCoin (APE) has been down by nearly since its launch last week. Image from freepik and BAYC

NEW DELHI (CoinChapter.com) — Yuga Labs, the team behind the popular NFT project Bored Ape Yacht Club (BAYC), launched a new cryptocurrency ApeCoin (APE), on Mar 17.

However, within days of its listing across various crypto exchanges, including Binance, OkCoin, Coinbase, Gemini, etc., APE is down by nearly 75% from Mar 17’s high of $40.98 to reach a low of $9.6 on Monday. The fall in ApeCoin’s prices is likely due to traders booking profits.

Related: Bored Ape Yacht Club has a new mascot token: ApeCoin.

APE’s prices reached a high of $40.98 within three minutes of launching at $0.99 on Binance, a jump of 4,014%, as per data from Tradingview.com. But, ApeCoin prices then fell to $9 in the next three minutes, indicating bears’ aggressive sell-off.

NFT APEUSD price movements on the 1-Hour chart. Source: Tradingview.com
APEUSD price movements on the 1-Hour chart. Source: Tradingview.com

APE prices have since been moving between $9-$11. On Gemini, ApeCoin started trading at $20 on Mar 17 before falling to $6.2 and finally closing the day at $8.6. Similarly, on Kraken, APE started trading at $15 and fell to a low of $6.15 before closing the day at $8.4.

ApeCoin’s price action across exchanges has been dismal, with the token losing anywhere between 50% to 75% across different exchanges.

ApeCoin’s Tokenomics

Yuga Labs’ ApeCoin has a fixed supply of 1 billion tokens but with no inflation or burning mechanism in place. A burning mechanism would have helped APE prices gather some bullish tailwinds.

The DAO treasury gets 47% of the total 1 billion APE tokens, with Yuga Labs allocating BAYC/MAYC holders 15%, keeping 62% of the total APE tokens within its ecosystem.

Yuga Labs (10%), Charity (Jane Goodall Institute) (6%), launch contributors (14%), and the founders (8%) collect the remaining tokens.

NFT ApeCoin's unlock schedule. Source: Messari
ApeCoin’s unlock schedule. Source: Messari

Furthermore, Bored Ape Kennel Club (BAKC) NFT owners will receive a bonus aside from a share of the 15% reserved for the project’s NFT holders. BAKC holders would need to claim their reward in 90 days, as Yuga would donate the unclaimed tokens to the ecosystem fund.

Also Read: Bored Ape NFT volumes spike after Universal Music purchases BAYC.

Yuga has unlocked nearly 26% of the total tokens and will unlock the remainder over the next four years. Additionally, the tokens reserved for Yuga Labs, launch contributors, and founders have a minimum lock-in period of 12 months.

The unlocking would be slow, roughly 1.5% of supply unlocked per month, to avoid any selling pressure on APE.

Despite APE prices falling more than70% since its debut, the token has been fairly successful compared to other NFT projects tokens. ApeCoin’s fully diluted market cap stands at $10.2 billion, as per CoinMarketCap.com, but the token’s future remains uncertain.

ApeCoin will serve as governance and a utility token in the APE ecosystem. At the time of writing, APE was trading at $10.36, up 8.03% on the day.

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ApeCoin, BAYC’s ApeCoin has slumped over 70% from debut high already

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