ApeCoin (APE) is a coin built on Ethereum related to the Bored Ape Yacht Club NFTs. The Bored Ape Yacht Club created ApeCoin. One of the most successful non-traditional investment projects to date is the Bored Ape Yacht Club NFTs. There have been sales of bored apes for prices that are unimaginable. Their renown among celebrities and high-profile NFT collectors has contributed to their meteoric surge in price.
If you want to buy a Bored Ape in May of 2022, you will need approximately $300,000 for the most affordable model. Over two million dollars was paid for the most expensive Bored Ape ever auctioned.
web3 and other virtual worlds
YugaLabs, the firm that created Bored Apes, rode the wave of success to introduce several more web3 applications as the game gained widespread popularity. It has already begun operating its metaverse, which it refers to as the Otherside. YugaLabs intends to take things even further by establishing a community centred on web3 and blockchain technology.
YugaLabs has begun accomplishing its lofty objectives by conducting an airdrop of freshly minted ApeCoins to owners of Bored Apes. Holders were awarded 10,094 ApeCoins for each Bored Ape that they own. Considering the price at the time of the first airdrop, which was approximately $70,000. YugaLabs located the wallet addresses of all Bored Ape buyers through the blockchain and deposited ApeCoin into those wallets. On March 17, the owners physically got out of bed to find tens of thousands of dollars waiting for them in their wallets.
Everything associated with the Bored Ape community will utilize ApeCoin as the standard money going forward. YugaLabs held an auction for “land” in the Other side before the end of the month of April 2022. A total of 55,000 land deeds were issued as an NFT. On the Other side, one parcel of land was represented by a single deed. ApeCoin was the only acceptable form of payment when purchasing plots. The asking price for each deed was 305 ApeCoins.
The public’s interest in the auction of virtual land was high. Sales totalled $600 million, with the first $300 million coming from the first release and the remaining $300 million coming from resales in the aftermarket. This year, the demand for land, on the Otherside was the most important factor in determining the volume of traffic on the Ethereum blockchain.
Not Your Everyday Memecoin
YugaLabs announced that the token would also serve as the governance token for the ApeCoin Decentralized Autonomous Organization. Token holders can cast votes on pertinent issues, such as how funds should be distributed and what kinds of future activities the DAO should pursue.
The Bored Ape Yacht Club has a sizable fanbase, and YugaLabs intends to make ApeCoin the default money for all their web3 projects. As a result, this coin may continue to exist.
Is doing so permissible?
ApeCoin DAO’s complete autonomy from Yuga Labs is essential to its success as an investment vehicle. If Yuga Labs were to create a token expressly as a reward for Bored Ape holders, it would be much simpler to make the case that a Bored Ape is a form of investment and is, therefore, subject to the regulations that govern securities. In the same way that some stocks pay dividends, a portion of the value of investment-style NFTs would be related to the benefits you may obtain in the future as a result of holding those NFTs.
There is a layer of plausible deniability because ApeCoin allegedly comes only from ApeCoin DAO and not from Yuga Labs. It is because an independent body is awarding tokens to a company and its founders rather than that company and its founders pushing their investments.
It is something that conventional businesses regularly undertake in the form of initial public offers of stock. The difference lies in the fact that the offering of ApeCoin is almost unregulated. The Securities and Exchange Commission in the United States does not yet have authority over NFTs.
Rohan Grey, a law professor at Willamette University and a watcher of crypto legislation, believes that the difference between ApeCoin DAO and Yuga Labs most likely has something to do with something known as the Hinman Test. It was named after William Hinman, a former Securities and Exchange Commission official who now works at Andreessen Horowitz.
Hinman proposed the idea that if a governing body is “sufficiently decentralized.” It is free to issue a token without having to register it as a security. The concept is now known as the “Hinman Free Token Rule.” Yuga Labs is not decentralized, while ApeCoin DAO is decentralized.
According to what he said, “it’s the latest iteration of the crypto world’s attempts to get around securities law.” “First of all, it was coins, and then in 2017, with the [SEC’s] ICO report, they couldn’t do that, so they switched to stablecoins, and then there was a clamp-down on that, so they switched to NFTs.” “First of all, it was stablecoins, and then in 2017, with the [SEC’s] ICO report, they couldn’t do that.”
