- A trusted coin, ApeCoin, which has received a 95 score from CERTIK.
- Unique feature of it is the maximum supply of it is 1 billion.
Ape coin is used within the APE ecosystem, it is an ERC-20 token. ApeCoin is based on the Ethereum network and encouraged by Vitalik Butrerin’s innovation to remain efficient. It was launched by Yuga Labs’ Bored Ape Yacht Club (BAYC) and the Mutant Ape Yacht Club (MAYC) on March 17, 2022.
ApeCoin can be divided into three parts, which are interconnected:
- ApeCoin protocol: In addition to being a digital payment network for settling transactions, it also allows users to create innovative applications on the platform.
- APE: It is a novel token of the platform that works on the ApeCoin protocol.
- ApeCoin foundation:To manage the day-to-day decentralised autonomous organisation (DAO) administration, manage requests and other tasks that ensure the reality of the platform.
The purpose behind creating ApeCoin was to manage and build the APE ecosystem. Providing APE holders with the necessary infrastructure to partner vai permissionless and governance processes. It helps people by providing a centralised financial system, but at the same time, it charges some costs from users which were unknown to many users.
It facilitates users with faster and more secure transactions, the only requirement to carry out transactions with APE on protocol is the internet. No matter where the user is located in the world, if they have a crypto wallet, they are part of the global financial system, APE ecosystem.
Pros of Centralised financial system
- It is not a direct advantage to ApeCoin investors but creates trustworthiness on the platform. CERTIK is a leading security focused ranking platform which ranks crypto projects and having its approval proves the authenticity of the project. Currently, it has a score of 95 out of 100.
- A factor to consider when investing in ApeCoin is the trading volume of the coin, which is presently over 368 million coins, and secondly, the market capitalisation, which is almost $777 Million, according to coinmarketcap.
- The popularity of it also encourages people to invest in it, APE is just behind Axie Infinity and CryptoPunk’s non-fungible token in terms of sales. Most of the exchanges that support APE for trading check all the characteristics mentioned above, which gives a kind of assurance to people who invest in it.
- Unique feature of it is that the maximum supply of it, which is 1 billion, could become circulating supply, which will bring the law of demand and supply into picture. Then a trader will be able to manipulate the price of APE to a certain extent. Additionally , this will make it more independent from the trading pattern of bitcoin.
Cons of the coin
- Coin has less history as it was launched some time back (March 17, 2022) but it shows the pattern of bitcoin. Understandably, bitcoin is the price leader, it reached an all time high of $64800 in April 2021 and in the next month it fell drastically and reached $37300. Coin is young it would be difficult to say anything about it but as the price of bitcoin goes up, its price will also go up.
- Another con to coin is that it is facing challenges from coins above it and new coins coming. It is new normal that a coin launched a month ago can have billions of dollars of liquidity and trading volume of it daily touches $100 Billion within a month. This is because APE faces challenges from new coins. The popularity of BAYC and MAYC could decrease collectively.
- APE is not an independent blockchain, it is based on the Ethereum network. Being housed in the Ethereum ecosystem, it has several benefits but it is shared between other stablecoins, decentralised applications, NFTs, decentralised Oracle network and decentralised cloud storage through which the Ethereum network communicates.
Conclusion
ApeCoin, a trusted ERC-20 token with a unique maximum supply of 1 billion, is the native coin of the APE ecosystem. With a high security ranking from CERTIK and growing popularity, it offers potential benefits to investors. However, its young age, dependence on the Ethereum network, and competition from other coins present some challenges to consider before investing.