ApeCoin Had a Strong Debut and Will Rise on NFT Dominance

Advertisement

  • ApeCoin (APE) has a plan to define Web 3.0 culture.
  • It’s solidifying a strong position in NFTs.
  • It has a chance to rise on improved NFT commercialization prospects.
ApeCoin logo displayed on a phone on top of $100 bills. ApeCoin stock.

Source: mundissima / Shutterstock

It’s inarguable that ApeCoin (APE-USD) had made anything other than an astounding entrance. The token appreciated rapidly after listing and is associated with the Bored Ape Yacht Club. Following the acquisition of Larva Labs’ CryptoPunks IP, it is making real waves in the NFT space.

Investors interested in ApeCoin must understand the importance of Web 3.0 culture and where NFTs fit into the plan.

APE-USD ApeCoin $14.01

Culture and Web 3.0

Here is the top reason to consider investing in ApeCoin: culture and Web 3.0. The company’s website lists this as the first thing to know about ApeCoin. You either agree with it, or you don’t but as ApeCoin puts it, “culture has found new expression in Web3 through art, gaming, entertainment, and events.”

If you believe that the trend will continue, then ApeCoin is a cryptocurrency to consider.

ApeCoin is aligning itself with the vague and difficult to predict connection between pop culture and decentralized finance. That truly has the possibility to morph into something very valuable. In fact, it already has.

Investors in ApeCoin are seeking to align themselves with the status conferred by the Bored Ape Yacht Club, which is a set of 10,000 ape illustrations that were designed to be used as profile pictures. They were launched last April and have since skyrocketed in value. The cheapest Bored Ape NFT listed on OpenSea costs an astounding $300,000. When they launched last year, they were selling for $200.

This is a part of Web 3.0 culture: flexing with digital objects. This is the latest iteration of people seeking to project status through ownership. ApeCoin doesn’t give owners the same status as ownership of a Bored Ape NFT, but it is connected. If this trend continues, then perhaps APE rises in value by association. The connection is difficult to define, but no one could have predicted that Bored Ape NFTs would rise as much as they have either.

The Bored Ape Yacht Club isn’t the only NFT associated with ApeCoin, either.

Yuga Labs

Yuga Labs is the parent company behind the launch of ApeCoin. It is clear that the company anticipates NFTs being a major catalyst in the crypto industry for a long time. It was already responsible for the Bored Ape Yacht Club, which is the third-largest NFT collection ever measured by sales volume.

Earlier in March Yuga Labs purchased all of the CryptoPunks intellectual property from Larva Labs. The CryptoPunks collection is the second-best selling NFT collection ever.

ApeCoin is the token underpinning the community and that gives it lots of potential. ApeCoin is about Web 3.0 culture as the company plainly wants everyone to see. According to Yuga Labs, Web 3.0 culture will continue to hinge heavily upon NFTs.

It also means ApeCoin has another commercial asset.

Commercialization

One of the main differences between Bored Ape NFTs and CryptoPunks NFTs relates to commercial licensing. Bored Ape owners were granted full commercial license to their NFTs while CryptoPunks owners were not.

Many BAYC owners were quick to jump on the commercial opportunity and launched brands based on the assets. Larva Labs, which owned CryptoPunks, did not grant the same rights to owners. That caused controversy.

That might mean CryptoPunks NFTs could follow the same commercial route. The company implied as much, stating, “we believe that what’s good for Punks is good for Apes and the rest of the space. Likewise, what’s good for Apes is good for Punks.”

Why Does It Matter?

ApeCoin matters because NFTs currently matter. Its price is going to continue to be strongly associated with the evolution of NFTs and their importance to Web 3.0 culture. That evolution is a very tricky thing to predict.

And that makes APE a gamble. For those crypto investors who strongly believe that NFTs are the future, ApeCoin makes a lot of sense. For those who don’t, the opposite is true.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/apecoin-had-a-strong-debut-and-will-rise-on-nft-dominance/.

©2024 InvestorPlace Media, LLC