What is ApeCoin (APE)?

The NFT Mania

How crazy is it to think that a picture on the internet could be worth tens of thousands or even millions of dollars? Well, this became reality in 2021 the year of NFTs, or non-fungible tokens, where digital images skyrocketed in value.

Among these, one collection stood out: the Bored Ape Yacht Club (BAYC). This NFT series went mainstream, attracting many who eagerly joined the world of high-value digital art through the blockchain. Building on the success of the Bored Ape Yacht Club, its creators took things further by launching ApeCoin (APE).

ApeCoin (APE) is the native token of the APE ecosystem, a decentralized environment created to empower token holders within the blockchain and NFT spaces. This token offers both governance and utility functions, making it unique among other tokens in the crypto space. Designed to integrate with Web3 applications, ApeCoin also capitalizes on the internet’s meme culture, giving users a way to participate in the digital asset market.

Background on ApeCoin (APE) & Yuga Labs

Yuga Labs, the creator of ApeCoin, became a major player in NFTs and Web3 technology. The company is also recognized for its ownership of CryptoPunks, another prominent NFT collection, with each digital collectible featuring unique traits that make them highly valued among collectors.

The Bored Ape Yacht Club (BAYC) collection includes 10,000 unique, algorithmically generated NFTs of cartoon apes on the Ethereum blockchain. Each ape has its own distinctive style, look, and rarity, creating a community that appeals to collectors and investors alike.

In 2022, Yuga Labs launched ApeCoin as the official token of the APE ecosystem. Upon its release, airdrops of ApeCoin were distributed to holders of Bored Ape Yacht Club (BAYC) NFTs, bringing immediate value and utility directly to the community.

As one of the most recognized NFT collections globally, BAYC has become synonymous with exclusivity and value, strengthening the demand for ApeCoin.

How Does ApeCoin Work?

ApeCoin operates as an ERC-20 token on the Ethereum blockchain, providing users with secure, decentralized access to the ecosystem’s applications and transactions. Because ApeCoin is built on Ethereum, it benefits from the network’s reliability, transparency, and widely supported infrastructure. As a governance and utility token, ApeCoin has both functional and participatory roles within the ecosystem.

ApeCoin’s governance is organized through a decentralized autonomous organization, or DAO, which allows APE token holders to participate directly in decision-making processes. Through the ApeCoin DAO, holders can vote on proposals related to the APE ecosystem’s development, including fund allocation, new projects, partnerships, and more.

Main Uses of ApeCoin (APE)

ApeCoin offers a range of uses within the APE ecosystem:

Governance: ApeCoin serves as the governance token for the ApeCoin DAO, granting holders voting rights on project decisions. This decentralized approach allows the community to take charge of the ecosystem’s development, fostering a sense of ownership among APE holders.
Currency: Within the ApeCoin ecosystem, APE is the primary token, allowing users to buy goods, services, and NFTs. This function broadens the token’s utility, as it serves as the main means of exchange for various digital assets and activities within the ecosystem.
Access to Exclusive Features: ApeCoin holders enjoy access to unique events, games, and products exclusive to the APE ecosystem. This access adds value to the token by connecting holders to specialized content, experiences, and privileges not available to non-holders.
Incentives for Third-Party Developers: Developers outside Yuga Labs are encouraged to incorporate ApeCoin into their own projects and games. For example, the play-to-earn game Benji Bananas by Animoca Brands uses ApeCoin as a reward token. By attracting third-party developers, ApeCoin expands its functionality across different platforms, fostering a wider ecosystem for the token.

ApeCoin (APE) Tokenomics

ApeCoin (APE) has a fixed total supply of 1 billion tokens, establishing a capped supply that prevents additional minting and ensures scarcity over time. Unlike many other crypto tokens, APE has no mechanism for token burning, meaning its supply remains stable with no reduction over time.

Buy & Sell ApeCoin (APE) in a Tax-Advantaged Crypto IRA

For those interested in ApeCoin (APE), you can buy and sell APE in a tax-advantaged crypto IRA at iTrustCapital. In a tax-advantaged crypto IRA*, investors can buy and sell ApeCoin (APE) with either tax-deferred or tax-free growth, depending on the type of IRA they choose.

Click here to open an account today!

DISCLAIMER

This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.

iTrustCapital is a digital asset IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not associated with and has no direct relationship with APE. iTrustCapital is not affiliated with and does not endorse any particular digital asset, precious metal or investment strategy.

Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.

Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.

iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.