The successful token sees a tumble amidst ETH troubles
Lately, the drop in crypto has led to many issues all around. The feeling of loss can be felt in every sector of crypto and web3 with many wondering when things may see an uptick. Yesterday we spoke on the Bored Ape Yacht Club seeing a drop in their floor to below 100k for the first time since August 2021 today another component of that ecosystem has taken a turn as well- ApeCoin
Apecoin was introduced earlier in 2022 and is a token created by the team of Bored Apes. The ApeCoin DAO was inaugurated in April 2021 for the BAYC which is already one of the top NFT communities out there. The token is ERC-20 and is used for the utility and governance of the DAO. APE token holders make all decisions on the governance of the project collectively, casting their votes and deciding on issues like allocation of funds, rules, partnerships, project selection, and many other issues.
The ApeCoin Foundation implements the governance decisions taken by the community. Third-party users can use the coin to cooperate with the ecosystem by utilizing it for their games or other play to earn activities. The coin is also the main economic standard for the Otherside metaverse that has been created and is currently in beta for all to try out.
The token only has a finite amount capped at 1 billion, there are no ways to create more and there is no burning mechanism meaning there won’t be any less.62% of that total is owned by the community. Holders of BAYC can claim 10,094 APE for each NFT they own, MAYC holders are given 2,042 APE per NFT. Yuga Labs owns 16% of the tokens with 14% going to contributors of the protocol with the final 8% going to the founders of Yuga labs. So in total, you could say Yuga Labs has a 24% share of the tokens.
The initial drop of the token saw many make a large profit with the inaugural shares, however that profitability is in question lately with the large drop in the value of the token as of late. Currently, the token has seen a 65% drop in value coinciding with the decline in the value of ETH at the moment. This is a crash that is harder than other gaming tokens at present.
At the beginning of this week, the coin saw an all-time low of $3.11 per token and has currently jumped back to $3.54. This price is still a decidedly smaller amount than its all-time high of $27.51. Other tokens have taken a drop as well but none have taken a more considerable drop than that of ApeCoin. The past 30 days have seen the coin drop 63% in value as other coins such as SAND have only seen a 42% drop and MANA seeing a 39% drop. Keep in mind that tokens everywhere are bleeding with even BTC seeing a 32% drop at the time of this writing.
BAYC the NFT project has seen a massive drop in value as well with the floor price being way below the all-time high of $429K for the NFT giant. As Ethereum continues with its decline and other tokens follow suit the value of the token and the NFTs may continue to bleed.