- ApeCoin is the governance token for the Ape community.
- Although quite popular now, it is hard to say that ApeCoin will ever be a direct competitor to Bitcoin.
The cryptocurrency market was initiated in 2009 when Satoshi Nakamoto published the white paper of Bitcoin. At the time of its launch, it had a simple aim: to create a decentralized alternative to the traditional financial system with the help of a digital currency (Bitcoin). It was not the first digital token to be launched; however, the previous ones could not be successful as they did not have the technology and source code of Bitcoin, which makes it unique.
Today, this cryptocurrency market has grown from being a simple payment alternative to expanding its presence in several sectors. With the launch of Ethereum, the concept of dApps and smart contracts came into the picture, eventually laying the foundation of the future DeFi market. The value of Bitcoin kept climbing as more cryptocurrencies and blockchain protocols were launched, bringing what was once limited to just tech-savvy minds into the mainstream light.
Although the idea of Non-fungible tokens (NFTs) was living since 2014 it became a known word followed by a proposal on Ethereum, which launched the ERC-721 standard concerning these NFTs. The years which followed enjoyed some buzz around the word with the launch of projects such as Cryptopunks and Cryptokitties. NFTs came into the major spotlight after the historic sale of “Everydays – the First 5000 Days”, by Beeple, for $69 million.
What followed was an influx of such collectibles, with Bored Ape Yacht Club (BAYC), a collection of 10,000 unique apes by Yuga Labs, gaining tremendous popularity. It quickly caught the interest of the mass public and caused a storm on social media. Even celebrities rushed to buy their BAYC, showcasing their wealth, luxury status, and trendiness.
The ApeCoin was launched to govern decisions related to the current prospects of the BAYC community. The Ape DAO was formed to decentralize the governing process, inviting all token holders to cast their votes and participate in the decision-making. The Ape Foundation ensures that these decisions are turned into reality and looks after the day-to-day administration, bookkeeping, and utilization of the Ecosystem funds to meet the community’s needs.
The Dotted Line
ApeCoin was launched in March 2022 and is relatively young compared to Bitcoin, which has been around for decades. ApeCoin entered the market at a time when the use of cryptocurrencies was not limited to just payments, but was also witnessing acceptance in the Metaverse.
The Metaverse is a single, common virtual space for everyone, a dream shared by many companies that have invested billions in the industry. The development of the Metaverse has already begun, with people purchasing digital land using real money, participating in VR-based games, and engaging in virtual commerce, events, concerts, and social interactions through their Avatars.
Yugalabs is actively working on its Metaverse world, Otherside, which is interoperable with other platforms and games operating within the Metaverse. It features Otherdeed, the virtual land in this world, and Kodas, NFT characters residing on these lands. The project has already generated excitement, with two trips launched to give some users a demo of this world. The game is still in the development stage and is set to launch in 2023.
Bitcoin, on the other hand, has been in existence for decades and has withstood numerous challenges in its journey, performing remarkably well. Its price is in the five digits, while ApeCoin has not surpassed $25. Any investor who believes in the future of cryptocurrencies or related projects would not overlook Bitcoin due to its profound impact in this sector.
Conclusion
The success of ApeCoin revolves around its ability to retain popularity and stay in the trend. However, as we are all aware, trends are bound to change over time, leading people to shift towards the latest lucrative objects in the market. The use cases of ApeCoin are limited compared to Bitcoin, which is the ancestor of all current projects and coins. Thus, it is highly dubious that ApeCoin may dethrone Bitcoin, at least in the years to come.
