ApeCoin (APE), the Bored Ape Yacht Club token has plummeted 80%

ApeCoin (APE), the new token tied to the popular NFTs in the Bored Ape Yacht Club collection, has plummeted 80% in its first hours of trading, dropping from $39.40 to just $6.48. 

ApeCoin (APE): the token tied to Bored Ape Yacht Club’s NFTs

ApeCoin was launched a couple of days ago and is an ERC-20 utility and governance token, used within the APE ecosystem to enhance and incentivize the building of a decentralized community (DAO) at the forefront of web3.

Here is the launch announcement with a roundup of tweets:

ApeCoin is owned and operated by the ApeCoin DAO, a decentralized organization where each token holder gets to vote on governance and use of the Ecosystem Fund. Holding ApeCoin is the only requirement for membership in the ApeCoin DAO.

— ApeCoin (@apecoin) March 16, 2022

“Introducing ApeCoin ($APE), a token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3. ApeCoin is owned and operated by the ApeCoin DAO, a decentralized organization where each token holder gets to vote on governance and use of the Ecosystem Fund. Holding ApeCoin is the only requirement for membership in the ApeCoin DAO”.

The APE airdrop was made available yesterday to all NFT holders of Bored Apes and Mutant Ape, as well as BAKC dogs paired with BAYC or MAYC. 

Post airdrop, the aftermath of the APE sales resulted in the price of the token dropping dramatically by 80%. 

The collapse of the price of the Bored Ape Yacht Club NFT token

Within hours of APE’s airdrop, holders of the new token linked to the Bored Ape Yacht Club could not resist selling it, causing the price to plummet.

https://twitter.com/0xHustler/status/1504678247992229889

“Congrats to everyone that sold and made money with $APE coin. I’m genuinely happy for everyone that’s not an asshole”.

In fact, APE has fallen 80%, from $39.40 to just $6.48 and then back up again. At the time of writing, APE is worth $12.44. 

A significant recovery over the last 24 hours has seen APE start from 49th position, with a total market cap of $2.4 billion, to be in 39th position at the time of writing, with the market cap updated to $3.4 billion. 

Overall, Bored Ape NFT owners were issued 10,000 ApeCoins, with 15% of the total supply available. Of the remaining supply, 47% will be sent to Bored Ape DAO’s treasury, 16% to parent company Yuga Labs, 8% to BAYC’s founders, and 14% to launch contributors.

The floor price for an NFT of Bored Ape briefly dropped to 79 ETH (about $220,000) after the airdrop, but has since climbed back up to 90 ETH (about $250,000).

Ethereum price and good news

The second-largest crypto by market cap, Ethereum (ETH) has also seen an 8% increase over the past week, rising from $2593 to the current $2800. 

Just today, good news was published about the merge test with Ethereum’s new Beacon Chain on the Kiln testnet which seems to have been successful. 

In short, Kiln is the second testnet that is being tested for the future merge between the current Ethereum blockchain, still based on PoW, and the new one, which will be based on PoS.