What happened
The price of ApeCoin (APE 1.25%) had fallen about 8% over the last 24 hours as of 10:36 a.m. EST on Monday for no obvious reason other than broader volatility the new cryptocurrency has experienced since its debut last week.
So what
ApeCoin is connected to the Bored Ape Yacht Club, a very valuable brand of non-fungible tokens (NFTs) that features a large collection of apes, all with different facial expressions and outfits. The collection grew in popularity last year when celebrities like Justin Bieber and Paris Hilton bought them. Bieber reportedly paid over $1.3 million for his ape NFT. The company has also reportedly done $1.5 billion in revenue since launch.
A total of 1 billion of the Ethereum-based ApeCoins were released. The token has been volatile, jumping from $7.40 to more than $17 per token, and then falling to where it currently trades, at around $10. ApeCoin's market cap is currently around $1.3 billion.
Image source: Getty Images.
Not only does ApeCoin have a big following, but it is also backed by some pretty big names. The main company connected to ApeCoin is Yuga Labs, which is considered one of the more well-known names in the NFT world. The large venture capital firm Andreessen Horowitz has also been involved with the project in some capacity and received tokens as part of its introduction, according to the Financial Times.
Additionally, some prominent entrepreneurs and investors sit on ApeCoin's board, including Reddit co-founder Alexis Ohanian and venture-capital executives such as Maaria Bajwa, principal at Sound Ventures; and Dean Steinbeck, president and general counsel at Horizen Labs.
Now what
The Bored Ape Yacht Club has certainly created a unique brand with a strong marketing strategy for celebrities and other high-net-worth individuals.
The brand has some really good traction, but I do wonder about its staying power, especially when you look at what has happened to other big crypto brands like Dogecoin. It has more than a $15 billion market cap, but the community around it has certainly lost some of its enthusiasm. ApeCoin could be here to say, but I expect there to be lots of volatility and uncertainty for the time being.
