What happened
As of 1:11 p.m. ET, the price of ApeCoin (APE -6.91%) traded roughly 9% higher over the last 24 hours, as it looks to be bouncing back from some more bearish news that occurred earlier this weekend.
So what
ApeCoin is an ERC-20 token, which means it lives on top of Ethereum's network and follows a certain set of standards.
ApeCoin is connected to the popular non-fungible token (NFT) collection Bored Ape Yacht Club, which launched in 2021 and is comprised of various APE NFTs, each of which has an outfit and facial expression specific to them. In 2021, some of these NFTs were purchased by celebrities for hundreds of thousands of dollars.
When ApeCoin launched, it had a fixed supply of one billion tokens, but not all the tokens were sold at once.
Yesterday, the ApeCoin treasury released 25 million APE tokens that had been saved for "launch contributors," including "companies and people that helped make this project a reality."
Not uncommon, investors were concerned that the number of new tokens being released could flood the open market, significantly increase supply, and lead to less demand and a reduced price. ApeCoin sold off pretty intensely earlier this week but has bounced back today.
Now what
ApeCoin is certainly an altcoin I find interesting because it launched with a real following, given the popularity of the Bored Ape Yacht Club. But we're currently in a crypto winter, as tokens across the board have been hammered due to high inflation followed by rapidly rising interest rates. In this environment, I really only like a few of the main tokens right now, like Bitcoin and Ethereum.
