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.
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.
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.
