With Board Ape Yacht Club (BAYC) and related NFT collections consistently claiming headlines, it’s no surprise that the latest project from Yuga Labs is taking off too. A new trending cryptocurrency dubbed ‘ApeCoin’ has been in development for quite some time. However, it was officially released on March 17th 2022 and almost immediately began shooting up in value. This can be attributed, in part, to the massive hype surrounding all things Yuga Labs and investors hoping they might see similar profits to early BAYC investors. There has been tons of hype surrounding ApeCoin, with mentions cropping up all across the web. As buyer sentiment has a large effect on the price of a token, as long as the hype train stays on the tracks, we'll likely see continued growth from here. Currently, the price of ApeCoin (APE) is hovering around $10.80 although it did briefly spike as high as $28 on release.
What is ApeCoin?
ApeCoin was awarded to holders of Board Ape Yacht Club, Mutant Ape Yacht Club, or Board Ape Kennel Club NFTs, some of the most prominent and well-known collections. Holders of these NFTS can claim APE directly from the ApeCoin website, with BAYC owners able to receive 10,094 APE currently valued at around $109,000. However, these coins are only claimable for 90 days from the project's release, so it’s advisable for anyone lucky enough to own one of these NFTs to head over to the official ApeCoin website before time runs out.
When you buy or claim any amount of ApeCoin, you technically become part of a decentralized autonomous organization (DAO). But what does this actually mean? Well, not a lot really. As of right now (22/03/22) holding APE doesn’t have a whole lot of utility. However, it does offer governance capabilities allowing owners of the cryptocurrency to vote on upcoming updates and decisions, similar to voting rights from shares.
There can be a maximum of 1,000,000,000 APE in existence although the current circulating supply is a fraction of the total at just 277,500,000 APE. 62% of the ApeCoin supply was reserved for holders of Yuga Labs NFTs. However, aside from this, the tokenomics are somewhat of a mystery. On one hand, the price could tumble once more of the supply is released into the market, on the other, if NFT holders fail to claim then the total supply should be reduced, potentially pushing the price higher.
Why is there so much Hype Around ApeCoin
It seems as though everything Yuga Labs touches turns to gold with many APE buyers comparing it to purchasing ETH at double-digit prices. The massive amount of hype surrounding ApeCoin is understandable considering the token launched just 5 days ago (17/03/22) and it's already listed on most major exchanges; a feat that normally takes months, if not years. Furthermore, just about everyone mildly interested in either crypto or NFTs has heard of BAYC with mainstream celebrities like Jimmy Fallon and Snoop Dogg even snagging a part of the collection.
Can Hype Influence Price?
Does hype have any effect on price? In short, yes. Ultimately, the value of any publicly traded asset is based on supply and demand. Picture a graph, on one axis, is the price people are willing to pay for an asset, on the other is the price people are willing to sell the asset for. Somewhere in the middle of these two figures lies the equilibrium. A point where, in theory, there is an even amount of buyers and sellers. If a project is spoken about positivity, there will be more willing buyers and less sellers, increasing price.
Because the number of buyers and sellers largely dictate the price of an asset, buyer sentiment (meaning how people feel about an asset) plays a massive part in moving the market. If people see positive sentiment from news sources or people they trust, they’re more likely to buy, regardless of cost. Conversely, if people see a lot of negative sentiment they’re likely to stay away. Therefore, by measuring the amount of hype around an asset, you can get an idea of the direction it’s likely to go ahead of time.
How can HypeIndex Help?
Now that we understand hype plays a large part in moving the price of an asset, is there a way to easily measure this seemingly arbitrary statistic? Yes! That’s where HypeIndex comes in, we track mentions of trending cryptocurrencies and stocks across most major information outlets, and use advanced machine learning algorithms to determine whether sentiment is positive or negative. Furthermore, with our premium plans, you can get alerts straight to your inbox whenever an asset you're interested in becomes hyped, allowing you to make a move before anyone else.
Overall, ApeCoin is an intriguing project, created by an excellent team, with tons of hype. Is it a good long-term investment? It’s too early to tell. However, major exchange listings and a huge amount of hype from retail investors and whales alike, signify that we’ll likely see investors pile in once prices have stabilized. For the time being, although the hype is high, we recommend those interested, slowly dollar cost average their way into ApeCoin. This way, you can begin building a position without worrying too much about potential dips. If you’d like to learn more about HypeIndex you can check out our FAQ page, or for more trending cryptocurrencies and stocks straight to your inbox, view our premium plans.