BAYC’s ApeCoin Highlights Power Problem With NFTs

Quick Summary

  • 1 billion ApeCoins have been released at the airdrop to all the holders of BAYC NFTs. ApeCoin reached a massive $10 billion trading volume during the first 24 hours.

The Bored Ape Yacht Club is a popular collection of non-fungible tokens (NFT) prized by celebrities, sports, and VCs. According to CryptoSlam, a blockchain data tracker, Bored Apes is already the third-most profitable collection of NFTs, with $1.5 billion in all-time sales. They also provided early access to ApeCoin, a new digital currency.

related: Short Documentary On The NFT Journey

About Bored Ape Airdrop

ApeCoin was introduced as an „airdrop,“ a form of release in which some groups of crypto holders are automatically given tokens as a reward. A small group of individuals controls the project. One billion ApeCoins were dumped in this instance, with owners of Bored Ape NFTs in line to get a piece of the action.

The currency gives its holders control over a decentralized autonomous organization (DAO), a crypto-native entity. The aim was to offer the Bored Ape community a say in developing web3, a decentralized, blockchain-powered vision of the internet coined by VCs. The Bored Ape DAO will utilize the blockchain to facilitate and record votes on community management decisions.

The more tokens a DAO participant has, the more control they have over the group’s governance. And some of the biggest ApeCoin beneficiaries were venture capital investors that contributed to the launch, such as Andreessen Horowitz and Animoca Brands. According to a spokesman for Yuga Labs, the designer of Bored Ape Yacht Club, they and other launch partners got a combined 14 percent, or 140 million tokens.

Launch of ApeCoin

The launch of ApeCoin is just a small illustration of how VCs are among the greatest winners of crypto’s ascent, having together spent $32.5 billion into the market in 2021. Even if Andreessen Horowitz sells his ApeCoins, it has already contributed to creating ApeCoin DAO.

Other evidence of power concentration may be found in the ApeCoin debut. Yuga Labs‘ four founders earned 8% of the ApeCoins distributed. Yuga Labs received about 15% of the airdrop as a firm, equal to the entire proportion granted to owners of Bored Ape NFTs or Mutant Apes, a spin-off NFT collection. 1% of the coins were donated to the Jane Goodall Legacy Foundation, a charitable organization. The treasury of the ApeCoin DAO received 47 percent of the decline.

ApeCoin’s Compatibility With Crypto’s Decentralized Nature

The ApeCoin DAO aspects a star-studded special council that will carry out the DAO’s decisions, which might be compatible with crypto’s decentralized nature. It involves prominent crypto figures such as Reddit co-founder Alexis Ohanian, the creator of venture company Seven Six, and Amy Wu, the head of FTX’s venture arm.

ApeCoin DAO is „a placeholder attempt to capture future potential revenue under the Bored Ape brand name,“ according to Aaron Brown, a crypto investor.

Conclusion

The introduction of ApeCoin had a trading volume of almost $9.2 billion in the 24 hours ending Friday evening New York time. It might raise regulatory issues since it resembles a public debut on a stock market. However, this is crypto. It’s decentralized!

more to read

How To Do Research (DYOR) Before Investing And Avoid Rug Pull

Big Time – The First AAA Game That Integrates Web3

Duet Protocol – The World’s First Multichain Ecosystem For Synthetic Assets


NFT World News Social Media: Twitter, Instagram, Telegram, Tiktok, Youtube


sources: finance.yahoo, bloomberg

author: Rene Remsik, Hafiz Awaiw

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.