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Explained: What Is ApeCoin and who is behind it?

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Explained: What Is ApeCoin and who is behind it?

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ApeCoin (APE) was launched recently and airdropped to all the investors of the BAYC and related NFT collections, such as the Mutant Ape Yacht Club and the Bored Ape Kennel Club. Through the airdrop, owners of BAYC NFTs could claim APE tokens for free and resell them whenever they wished.

Explained: What Is ApeCoin and who is behind it?
Out of all the limelight-stealing NFTs, the Bored Ape Yacht Club (BAYC) and related collections are probably the most prominent.
They featured bored-looking apes that could be customised down to the tiniest detail based on the buyer’s taste. These seemingly-ordinary looking artworks attracted extraordinary attention. Some of them even sold for hundreds of thousands of dollars with a customer list including the likes of Justin Bieber, Eminem, Jimmy Fallon and so on. And the buzz around BAYC does not seem to be fading anytime soon.
On 18 March, the ApeCoin (APE) was launched and airdropped to all the investors of the BAYC and related NFT collections, such as the Mutant Ape Yacht Club and the Bored Ape Kennel Club.
Through the airdrop, owners of BAYC NFTs could claim APE tokens for free and resell them whenever they wished. Of course, some investors cashed in and made loads of money, ultimately driving the buzz around BAYC once again.
What is ApeCoin?
ApeCoin serves as the governance and utility token of the BAYC, an NFT project of Yuga Labs, which has 10,000 unique bored ape artworks. The Ape Foundation that powers the ApeCoin is overseen and managed by the ApeCoin DAO, which aims to ensure governance as the community burgeons. Therefore, ApeCoin holders become voters on the DAO, for which the Foundation acts as a facilitator.


It is an open-source project that serves the ‘web 3.0 economy’ wherein the owners of web-based content are the creators themselves. That includes digital artwork, music, videos, GIFs, in-game items, etc. “The possibilities for blockchain’s impact on culture are so endless that they can’t possibly all be predicted yet. APE is a token made to support what’s next, controlled and built on by the community. It will serve as a decentralised protocol layer for community-led initiatives that drive culture forward into the metaverse,” quotes the ApeCoin website.
The admins of the Ape Foundation are overseen by “The Board” – a special council of the ApeCoin DAO. The Board congregates when proposals for executing the DAO’s vision are reviewed. It administers them, ensures thorough implementation, and acts as the custodian of the DAO’s vision. The first Board will serve for 6 months, after which DAO members will annually vote on the new members.


“The goal of the APE Foundation is to steward the growth and development of the APE ecosystem in a fair and inclusive way,” says the website. The Foundation also “provides an infrastructure for ApeCoin holders to collaborate through open and permissionless governance processes.”
Project Objectives:
The ApeCoin Project strives to promote the creation and expansion of a web decentralised web 3.0 community by allowing the following:
1.    Governance:
Since ApeCoin holders become members of the ApeCoin DAO, they become responsible for voting on proposed changes to protocols and ensuring that the project’s long-term vision is upheld.
2.    Access:
Certain parts of the Ape ecosystem are restricted for day-to-day users like exclusive merchandise, games, services and even events. Access to these is unlocked through the ownership of ApeCoins.
3.    Incentivisation:
Network participants who own ApeCoins can even incorporate ‘Bored Apes’ into their projects under development. The possibilities extend from using Ape avatars in games to services and other applications as well.
4.    Spending:
Being a utility token, ApeCoin also acts as a cryptocurrency that unifies the entire community and provides them with a means of transacting amongst themselves on a decentralised platform.
ApeCoin Tokenomics:
ApeCoin is an ERC-20 token, which means that it is built on the Ethereum blockchain. The supply in circulation is limited to 1 billion tokens – all of them minted in one go. Here’s how the entire token supply will be distributed:
  • 62% to the Ecosystem Fund: 150 million airdropped + 470 million to DAO treasury
  • 16% to Yuga Labs & Charity: 150 million to Yuga Labs + 10 million in donation
  • 14% to Launch Contributors: 140 million tokens wherein the lock-up period and unlocking windows are defined (10 million upfront)
  • 8% to BAYC Founders: 80 million tokens
  • The 150 million ApeCoin tokens (or 30.25% of the circulating supply) from the ‘Ecosystem Fund’ were disbursed in the following proportion to BAYC NFT holders:
    • Bored Ape NFT: 10094 tokens
    • Bored Ape + Kennel Club: 10950 tokens
    • Mutant Ape + Kennel Club: 2898 tokens
    • Mutant Ape: 2042 tokensHow can you invest in ApeCoin?
    • APE is already listed and available for trading on various exchanges such as Binance, Coinbase, KuCoin, Huobi, Kraken, Bybit, FTX, etc. It is currently trading at $10.57, down by 11% over the last 24 hours and 9% since inception, according to CoinMarketCap data.
      Its current market cap is $2.93 billion – down by 11% in 24 hours as well. Its fully diluted market capitalisation at current prices is $10.57 billion. Despite being the newest entrant in the crypto market, it already stands 47th on the market capitalisation leader board.
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