ApeCoin – Walking a Fine Line Between Bears and Bulls

What is ApeCoin (APE)?

ApeCoin (APE) is an Ethereum-based token launched on March 17. It is the official token of the Bored Ape Yacht Club (BAYC) and is a reward for holders of BAYC and MAYC NFTs. The token was created by ApeCoin DAO, a new decentralized autonomous organization that governs the token and its roadmap.

APE made headlines during its 24-hour launch when users claimed 109 million of its tokens – worth around $1.2 billion. As a result, some of its holders made tens of thousands of dollars in less than a day.

Additionally, ApeCoin DAO has prominent names in the crypto community serving as members of its board. For example, Reddit Co-Founder Alexis Ohanian; and FTX’s Head of Ventures Fund Amy Wu.

At the Time of Writing

As per Coingecko, APE trades at a price of just over $11 with a decline rate of 3.1% over the past two weeks. It has a market capitalization of over $3B with a 24-hour trading volume of over $695K. APE has reached an All-Time High of $17.17 – 30% lower than the current price – one day after its launch.

APE in the News

On March 23, Yuga Labs raised $450M from a seed round led by Andreessen Horowitz (a16z). In addition to the news, Yuga Labs announced the trailer for its upcoming Metaverse called ‘Otherside’ powered by ApeCoin.

On March 24, Snoop Dogg and Wiz Khalifa released a set of 8 music tracks as NFTs centered around the theme of APE and BAYC. The release was titled “Ape Drops 03: An 8th” which was a collection minted through Manifold and included nearly 8,000 NFTs each. The music NFTs could only be bought through the APE token.

On March 25, scammers hacked verified Twitter accounts to steal $1M through fake ApeCoin airdrops. Some APE owners lost as much as $500K worth of NFTs with other Twitter threads showing the hacked verified accounts.

Finally, on April 1 the ApeCoin Discord suffered a phishing scam resulting in added volatility in the token price. APE dropped by 8% following the hack, and the official account had to warn its users to not mint from its Discord.

APE Market Performance

The above chart indicates that APE is trading within the Arnaud Legoux Moving Average (ALMA), which is a bullish indicator. In addition, APE has successfully recorded a growth rate of over 1000% from March to April.

If this trend continues, APE has a chance to break its resistance level of $15 to $17. This will result in a pathway towards a bullish price of $28. However, this all still depends on market behavior.

The Future of APE

ApeCoin is currently facing a lot of volatility. It has had All-Time Highs that have pleased investors, but it has fallen from that price point ever since then. Adoption has been going well, with even influential artists such as Snoop Dogg favoring the coin. However, the phishing and scams have also damaged its image – deterring investors and lowering its price afterward.

Currently, APE’s shining hope is Yuga Labs’ Metaverse Otherside which will be powered by ApeCoin. Yuga Labs hinted that more details about the Metaverse will come during the month of April.