Michaël van de Poppe - 27 October 2022
A big chance that ApeCoin will be one of the biggest components of the ecosystem!
Welcome to a new blog post! In today's blog we talk about ApeCoin. ApeCoin (APE) is a governance and utility token that allows its holders to join the ApeCoin DAO, a decentralized community of Web3 developers. Learn more about $APE in this article!
Yuga Labs is a blockchain technology company that develops NFTs and digital collectibles. It specializes in the fields of blockchain, cryptocurrency, and digital media. Yuga labs has grown to become a popular NFT brand with the launch of its Bored Ape and Mutant Ape NFT collections.
Ownership of these premium NFTs has evolved into an elite movement of highly influential figures who hang out in the Bored Ape Yacht Club. Yuga Labs and third-party brands are using ApeCoin to power their ecosystem of apps and services.
As you can see in the graph, Yuga Labs, Charity, and Bored Ape Yacht Club founder's coins still need to be unlocked. They will start to be released in March 2023. It is essential data to keep in mind if you consider investing.
The ApeCoin community selected Horizen Labs in May to create a staking platform that rewards users who stake APE Coin, Bored Ape Yacht Club NFT, Mutant Ape NFT, and Bored Ape Kennel Club NFT in their pools.
The sneak peek, and documentation is released. Users who have an APE coin or one of the three NFTs will be able to stake their holdings and earn staking rewards.
The purpose of staking is to create new ways to stimulate demand for both the coin and the NFT holders. NFT staking is a new concept, and it will create a passive income source for NFT holders, and APY of the staking function will be adjustable by ApeCoin DAO.
In a recent announcement, Horizen Labs announced that APE staking would launch on October 31st. Moreover, the blockchain company said the date could be pushed back by a week.
If the ApeCoin APY is high, it can create even more sell pressure on the coin. On the other hand, if they can position APY in a reliable spot, it can be bullish for ApeCoin because people will buy more to stake to earn passive income, thus decreasing supply of the tokens.
The staking rewards will be distributed from ApeDAO treasury for the next 3 years which will increase the supply, however, staking APE will also decrease the circulating supply available for selling.
ApeCoin staking function is expected to go live on the 31st of October. NFT holders and ApeCoin holders will be able to stake their holdings to earn more ApeCoin. If you believe that Metaverse will get more attraction and adoption in the future, ApeCoin will probably be one of the biggest components of the ecosystem.
The staking launch date and the unlock dates should be observed carefully. Future updates should be followed about NFTs, Yuga Labs, and ApeCoin because Yuga Labs and their NFTs are affecting ApeCoin price a lot. In the long run, if we can see more utility for ApeCoin, it may perform bullish price movements.
If the staking ratio goes high, the ApeCoin supply in circulation will decrease, which can trigger a supply shortage. In the end, we can see a bullish reaction followed by buying pressure.
In this Trade Letter we also gave a TA on $APE! Moreover, we discussed $APT and did a FA and TA on this project! All in the same Trade Letter!
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