Who Is Behind ApeCoin and What Is ApeCoin?

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Owners of the Curious Ape Yacht Club NFT collection will receive their own cryptocurrency,  Who Is Behind ApeCoin and What Is ApeCoin? which was unveiled earlier this week.

The passive voice is there on purpose. ApeCoin is expressly tied to these notoriously expensive non-fungible coins, and is closely associated with Yuga Labs, the business in charge of the Bored Apes’ intellectual property.

 

However, ApeCoin has been deliberately dissociated from any single traditional firm thanks to a well-coordinated marketing strategy.

ApeCoin is a product of ApeCoin DAO, a brand new corporate entity administered completely by token holders, according to the public relations campaign.

You can join the DAO (decentralized autonomous association, a form of online community centered on crypto) simply by holding APE; you don’t even need to possess a Bored Ape NFT to do so.

 

ApeCoin is described as a “decentralized protocol layer for community-led initiatives that move culture forth into the virtual world” on its official site.

ApeCoin is a product of ApeCoin DAO, a brand new corporate entity administered completely by token holders, according to the public relations campaign.

You can join the DAO (decentralized autonomous association, a form of online community centered on crypto) simply by holding APE; you don’t even need to possess a Bored Ape NFT to do so.

 

ApeCoin is described as a “decentralized protocol layer for community-led initiatives that move culture forth into the virtual world” on its official site.

Let’s try to analyze some of that crap.

What exactly is ApeCoin?

ApeCoin is an ERC-20 token, which is a type of Ethereum-based build-it-yourself cryptocurrency.

This system is used by the majority of the Ethereum-based social tokens that have gained popularity in the last year (think FWB, for the social club Friends with Benefits, and WRITE, for the Web 3 crowdfunding site Mirror).

 

Unlike NFTs, ApeCoins are intended to be “fungible” – like bitcoin (BTC), every one ApeCoin should be worth precisely the same as any other ApeCoin, and you can buy and sell them freely on a decentralized exchange, which is a type of digital trading post for cryptocurrencies.

 

The cryptocurrency was listed on almost every major consolidated crypto market almost quickly after its introduction.

 

Given the famously fussy attitude of key companies like Coinbase, this was a significant achievement in and of itself (COIN).ApeCoin has a market capitalization of about $2 billion after just one day of trading;

 

one APE is currently worth roughly $14, and the total quantity of tokens is capped at one billion (not all of which is currently in circulation).

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Who Is Behind ApeCoin and What Is ApeCoin? All About

ApeCoin is being introduced by ApeCoin DAO, a new governance organization in which all APE holders are members, according to the ApeCoin website and associated press materials.

 

Its purpose is to collect communal ideas, which token holders may subsequently vote on.

Similar voting methods have been tried in other NFT projects. When you buy an NFT from the “Nouns” collection, you become a member of Nouns DAO, an online investment collective with a $62 million treasury.

 

Nouns owners can determine what they want to do with the money as a group on a dedicated website for proposals. (A common suggestion is “What if we made an NFT comic book?”)

The Ape Foundation will handle day-to-day DAO administration, request handling, and “other responsibilities that ensure the DAO community’s ideas have the support they need to become a reality,” according to the website. It’s ApeCoin DAO’s legal foundation.

ApeCoin DAO’s “board,” which will monitor proposals, will be made up of Ape Foundation subcommittee members.

The inaugural board of directors includes Dennis Ohanian, the co-founder of Reddit; Amy Wu, the head of FTX’s venture arm; Maaria Bajwa of Sound Ventures; Yat Siu of Animoca Brands; and Dean Steinbeck of Horizen Labs.

 

Each board member will have a six-month term, and DAO members will be able to vote on future board members, according to the ApeCoin website.

Cartan Group, a Channel Islands consulting firm, is being paid $100 million per month for a 6 contract; Kevin Tang, the company’s co-founder, posted all five of the DAO’s active AIPs, or “Ape Improvement Proposals.”

But there is the ApeCoin DAO, the Ape Foundation, and the ApeCoin DAO board, in addition to the ApeCoin protocol (the code that powers ApeCoin tokens).

However, ApeCoin was not created by the Bored Ape investment community. This primate galaxy has a black hole at its heart. Who put this thing together in the first place?

Yuga Labs, a typical Dutch company, is the driving force behind the Bored Ape Yacht Club. It’s apparently in talks with venture capital company Andreessen Jacobs about a $5 billion fundraising round, and it’s lately taken steps to effectively become the first significant NFT monopoly.

Yuga Labs is also in charge of all of the Bored Ape Yacht Club’s big initiatives and purchases. You’ll have to go through Yuga Labs if you want to do anything with Bored Ape IP.

 

“Yuga Labs will continue to be developers of services and brands that offer fresh ideas and excitement to the community,” stated Yuga Labs CEO Maria Muniz in a statement.

 

Yuga Labs has given the ApeCoin DAO treasury a one-of-a-kind NFT and wants to “use ApeCoin as the principal currency for all new products and services,” tying its worth to the overall health of the Bored Ape collection. Despite this, Yuga Labs has stated that it is unrelated to ApeCoin.

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“It’s certainly tempting to suggest that ApeCoin is from the Bored Ape Yacht Club to simplify things, but it’s not factual,” a press release from Strange Brew Strategies advises journalists.

 

“Yuga Labs will continue to produce experiences and products that bring new ideas and excitement to the community,” said Yuga Labs CEO Nicole Muniz in a remark.ga Labs has given the ApeCoin DAO treasury a special one-of-a-kind NFT and plans to “use ApeCoin as the primary currency for all new products and services,” tying its value to the overall health of the Bored Ape collection.

Despite this, Yuga Labs has stated that ApeCoin is not its responsibility. It’s definitely tempting to write that ApeCoin is from the Bored Ape Yacht Club to simplify things,” a press statement from a company named Strange Brew Strategies advises journalists.

 

Free money and distribution And How To Buy Apecoin

 

Who is behind Apecoin and what is Apecoin?
How To Buy Apecoin video clip

 

The ApeCoin distribution methodology confuses the issue of agency even more. Sixty-two percent of all ApeCoins will be reserved for token holders and the DAO’s treasury.

Anyone who has a combination of NFTs from the Bored Ape Yacht Club and its two spin-off collections, the Mutant Ape Yacht Club and the Bored Ape Kennel Club, can claim a specific quantity of APE from ApeCoin’s website for the first 90 days of its existence.

NFT holders have claimed about 110 million APE tokens thus far (here’s a handy dashboard for following APE tokenomics, courtesy of a Dune Analytics genius named Hildobby). The remaining 38% of ApeCoin is reserved for “early adopters” and the Jane Goodall Legacy Foundation, which supports conservation efforts for (real-life) rainforest primates.

 

Yuga Labs will get 150 million APE, with 10 million going to the Jane Goodall Legacy Foundation (“or equal value”). The remaining 140 million APE will be distributed to “the companies and people that helped make this initiative a reality” — an unknown group that most likely includes Yuga Labs employees. Yuga Labs’ founders will receive 80 million APE. These coins are all “locked.”

 

Is this permissible?

 

It is predicated on the notion that ApeCoin DAO is completely independent of Yuga Labs. You could more readily argue that a Bored Ape is a type of investment, and hence subject to securities legislation, if Yuga Labs issued a token specifically as a reward for Bored Ape holders.

 

Part of the value of investment-style NFTs would be related to the privileges they could offer you down the road, similar to how certain equities pay dividends. There’s a layer of legal cover with ApeCoin ostensibly coming only from ApeCoin DAO and not from Yuga Labs – an independent entity awarding tokens to a company and its founders rather than that company and its founders injecting their own capital.

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The difference between ApeCoin DAO and Yuga Labs, according to Rahul Grey, a law professor at Willamette University and crypto regulatory observer, is likely due to something called the Hinman Test.

It’s named after Charles Hinman, a former SEC official who now works at Andreessen Horowitz. Hinman’s concept was that if a governing body is “sufficiently decentralized,” it can issue a token without having to register it as a security.

Who is behind Apecoin and what is Apecoin?
Ape to USD Conversion Chart

 

ApeCoin DAO is decentralized (at least in theory); Yuga Labs is not. He described it as “the next iteration of the crypto world’s attempts to circumvent securities law.”

“First, it was coins, but they couldn’t do that in 2017 because of the [SEC’s] ICO report, so they went to stablecoins, and then to tokens.”

How much could I get using ApeCoin, though?  ApeCoin is mostly used for speculative and “administration” of the DAO at the moment. Yuga Labs, on the other hand, has big plans for the token.

ApeCoin is being used as an in-game monetary system in the smartphone game Jamie Bananas, developed by Animoca Brands and co-founder, Yan Siu, is on the board of the Ape Foundation.

A Jamie Bananas Membership Pass costs 25 ApeCoins and allows you to earn “special tokens” in-game. After that, the tokens can be exchanged for ApeCoins.

Yuga Labs intends to use APE as its de facto currency for any new initiatives, so this is likely just the start of a large ecosystem powered by ApeCoin.

 

Who is behind Apecoin and what is Apecoin?
Apecoin Full Video Review

 

That’s also a legal consideration: the more you could do with the token other than speculate, the higher your chances of avoiding the SEC.

You may assume the use reasons to, uh, evolve if the price holds and investors from outside Bored Ape Yacht Club ecosystem start taking positions in APE.

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