Bored Ape Yacht Club owners rejoiced, as ApeCoin launched with a generous airdrop for the NFT collection’s holders. Learn what ApeCoin is and how it made the Bored Apes richer.
The Bored Ape Yacht Club (BAYC) is a popular non-fungible token (NFT) collection based on the Ethereum blockchain.
Made up of 10,000 unique Bored Ape NFTs, the collection ranks as the second-largest by trading volume. At the time of this writing, the collection has a price of 119.42 ETH apiece, or US$359,000.
While this can seem like a lot for a digital avatar, investing in a BAYC NFT has been lucrative thanks, in part, to the launch of ApeCoin.
Bored Ape NFT holders were eligible to claim a share of the ApeCoins that debuted earlier this year as the official cryptocurrency of the BAYC ecosystem.
What is ApeCoin?
ApeCoin was officially released on March 16, 2022, as “a token for culture, gaming, and commerce” and is the main cryptocurrency of the Bored Ape Yacht Club ecosystem. Trading under the symbol $APE, the Ethereum-native ERC-20 token has a market capitalization of US$4.02 billion, according to data by CoinMarketCap. About 28% of ApeCoin’s fixed supply of 1 billion tokens is in circulation.
ApeCoin has utility as the membership pass and governance token of the ApeCoin decentralized autonomous organization (DAO), where every token holder can vote on the use of the Ecosystem Fund or cast their own proposals. The token can also be used as an open currency for payments and transactions without centralized intermediaries.
The ApeCoin DAO and How It Launched $APE
One of the peculiar things about ApeCoin is that it wasn’t actually launched by Yuga Labs, the founding team behind the Bored Ape Yacht Club. Instead, $APE was introduced by the ApeCoin DAO, where $APE token holders can vote on the governance and use of the Ecosystem Fund.
Holders of a Bored Ape NFT were eligible to claim 10,094 tokens, while holders of Mutant Ape were eligible for 2,042 tokens, or a windfall of US$184,620 and US$37,350 respectively at the recent price of US$18.29 per token. Bored Ape Kennel Club NFT owners were not eligible to claim the coin.
NFT holders were free to cash out their ApeCoin holdings from the first day of trade. The rush to secure windfall gains was cited as one reason for volatility in the token during its debut on March 17, which rose from US$1 to close at US$8.52 per token.
Additional upside of ApeCoin may be limited by the future expiration of the lock-up provisions on the tokens granted to contributors. For instance, Yuga Labs received 16% of the token’s total supply, with an initial lock-up of 12 months — meaning that they can’t cash out their tokens for that period.
Following that, 4.167 million tokens will be unlocked every month for 36 months. The 8% of the token supply allocated to BAYC founders also has a similar lock-up period of 12 months, while the lock-up period on the 14% airdropped to launch contributors gradually expires at the 6-month, 12-month, and 18-month mark for the majority of the tokens.
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