Metaverse Coin ApeCoin Loses Its Value In 30 Minutes
Rancakmedia.com – In an effort to create a community around Bored Ape Yach Club's NFT collection, Yuga Labs has introduced Metaverse Coin ApeCoin as its newest cryptocurrency.
After several stories published in major media such as The Verge and Tech Crunch advertising the introduction of the token, ApeCoin lost more than half of its value within 30 minutes of being listed on CoinMarketCap. Let's take a look at ApeCoin and find out why the price has dropped so much?
What is Metaverse Coin ApeCoin
When it comes to Web3, ApeCoin bills itself as the token for Web3. To administer the APE Foundation, the main goal of this Metaverse crypto coin is to be useful. The future of the Bored Ape Yacht Club project is being shaped through community-based governance made possible by the Foundation.
Using the DAO, Apecoin holders will be able to have a say in everything from distribution of the project's Ecosystem Fund to collaboration and governance arrangements. ApeCoin DAO membership is open to all ApeCoin holders.
In addition, the APE Foundation offers a special board, called the DAO “board”, whose job is to propose ideas and help the community. The initial board served for six months, after which DAO members would vote annually for new board members.
ApeCoin is an ERC-20 token that operates on the Ethereum network. It has a circulation supply of one billion tokens, and that number will never increase. A portion of the tokens is frozen at launch, while another portion will be awarded to BAYC and MAYC NFT holders.
Depending on the NFT you have, users can earn up to 10,094 tokens and claim them starting March 17th at 8:30 AM ET.
The Cause Metaverse Coin ApeCoin Down
ApeCoin started on CoinMarketCap at a price of $20, after 30 minutes the price dropped below $10 with a 24h trading volume of $570 million. With a fully diluted valuation of $9 billion, ApeCoin is still worth an impressive $2.5 billion, despite the recent price drop.
It is clear that the current crash in price is due to NFT holders claiming their ApeCoin tokens and dumping them directly on the market. After all, 10,094 tokens priced at $10 = about $100k free money that NFT holders just got.
While Bored Ape Yacht Club's NFT base price is currently at 88.88ETH (approx. $248k), $100k is still a large amount to be paid for free by dumping ApeCoin on exchanges.
Also, the token has just been introduced on Binance, and since Binance is where most of the trading activity comes from, we may see more of a sell-off in the near future.
While the launch of ApeCoin is great news for BAYC NFT holders, as it implies their NFT will surely increase in value as the APE Foundation creates more utility around them for someone outside of the Bored Ape Yacht Club circle, investing now is extremely dangerous.
As token prices continue to fall claim to see an increase in the number of NFT holders selling their tokens on exchanges.
ApeCoin is an ERC-20 token that operates on the Ethereum network. It has a circulation supply of one billion tokens, and that number will never increase.
The future of the Bored Ape Yacht Club project is being shaped through community-based governance. ApeCoin started on CoinMarketCap at a price of $20.
After 30 minutes the price fell below $10. Tokens have just been introduced on Binance, and since Binance is where most of the trading activity comes from, we may see more selling.