ApeCoin Drops More Than 20%
Bored Ape Yacht Club surprised its NFT holders when it dropped an ApeCoin token for them on the 17th of March. It was met with mixed responses, as many were excited about the new coin while others saw losses later in the week. Although the ApeCoin has become an exciting happening in the NFT space, the anticipation surrounding it is dropping along with the interest in NFTs and the Metaverse.
Ever since the Bored Ape Yacht Club NFT collection launched their cryptocurrency, ApeCoin, it has been trending on the market steadily. There was a lot of excitement to see a digital coin emerge from an NFT collection for NFT holders. Due to this, the coin immediately became one of the top 100 cryptocurrencies in the world.
But currently, ApeCoin has dropped by over 20% in the market, which is very different from its initial stance on the 17th of March. Headlines have shown that the coin has dropped by 80% after volatile price movements since its launch. NFT holders who could have sold the coin at $40 at its launching can only sell it at around $14 now.
Despite this drop, ApeCoin only dropped from the 35th to the 46thposition as the most valued cryptocurrency in the market cap.
Initial Excitement with ApeCoin
When the famous NFT collection, Bored Ape Yacht Club, released the brand new ApeCoin, many NFT and crypto holders feared missing out. The cryptocurrency was the 33th largest, with a market cap of about $4.1 billion when it was released. The coin was airdropped only to BAYC NFT holders, allowing them to claim it freely and then sell it for a profit or hold it. Those that didn’t have a BAYC NFT could only purchase it by buying it upon its launch.
While some investors made tens of thousands of dollars by taking the chance, others did not make as much because of the fluctuating prices. ApeCoin followed the trend of airdropped currencies in terms of its unstable price.
At the launch, it was valued at $10.36, but the price dropped significantly to $6.21 a few hours later. It later balanced and was traded at $7.69, and all of these happened on the same day.But with the ApeCoin, only the BAYC NFT holders who sold their airdropped tokens made an impressive profit. Others who purchased it upon release are already losing from this investment significantly since the value of ApeCoin is already dropping within three days. It is reported that they experienced over a 90% loss in almost an hour of purchasing the coins.
Those who decided to hold the token rather than sell it are already getting discouraged by the falling value of the coin. It’s essential to note volatility in airdropped coins isn’t a surprise, and investors who hold might get impressive profit later on.
Why The ApeCoin Remains Popular
Despite the 20% drop in ApeCoin’s value, the NFT token continues to trend in its space and is expected to increase in value as the days go by. This is mainly because ApeCoin is likely to serve as the primary token of the Bored Ape Yacht Club NFT ecosystem.
The BAYC team has stated that, although the ApeCoin was released as a meme coin, they still have plans to build their NFT ecosystem around it. The BAYC NFTs have become increasingly popular since their release. They are even held by celebrities like Justin Bieber, Post Malone, Neymar, Kevin Hart, Snoop Dogg, Jimmy Fallon, and Paris Hilton. Even Universal Music Group recently purchased a Bored Ape.
Asides from being useful in the BAYC NFT ecosystem, the ApeCoin will be used in The MonkeyFirm NFT platform, play-to-earn gaming projects, and a decentralized exchange. But, the popularity of this NFT token seems to be based on the market momentum, hype in the NFT scene, and speculation from players in the market.
Since the driving force behind the token is hype and marketing, there’s doubt that the ApeCoin would be able to make significant profit gains in the future, especially with the nosedive today. This doesn’t mean that there’s no chance of the value increasing, only that the risk involved in investing in this token remains high at this moment.