More than 25 million APEs will be released by next week, representing 8% of the total Apecoin supply. Apecoin is facing selling pressure as a large amount of metaverse coins are now in circulation.
25 million ApeCoins (APE) unlocked
Over 25 million Apecoins (APEs) will be in circulation this weekend. As a result, such a large amount of metaverse coin brings with it selling pressure.
APE, which is also a DAO token, was launched in March. Apecoins were airdropped to investors of the Bored Ape NFT series. There are currently 314 million Apecoins in circulation. In the coming days, 25 million tokens will be in motion, representing 8% of the circulating supply.
While unlocks for Yuga and BAYC founders are scheduled for March 2023, this weekend’s unlock is part of the token offering reserved for contributors.
Information about to whom the tokens will be distributed is not publicly available.
However, crypto research firm Delphi Digital said in a note Friday that it is “reasonable to infer that it includes investors like a16z, Animoca Brands and FTX” as the funds participate in funding rounds for Yuga Labs and support the development of the ApeCoin DAO. Delphi analysts:
The million dollar question is whether contributors to this launch will sell their tokens after they are released. This will put significant selling pressure on APE.
APE traded at $4.80 in the morning. It fell 8.5% in the last 24 hours, accompanied by the market overall. While Bitcoin and Ethereum are bearish, Apecoin has lost about 21% since last month. But despite the upcoming unlock, some analysts have pointed out that ApeCoin staking, which will allow holders to borrow cryptocurrencies against Bored Ape NFTs, will act as a key catalyst in the coming months. Chris Esparza, founder of Vault Finance, in a Telegram message:
The upcoming staking feature will be a much-needed boost to remind investors of the essence of the coin: It’s creating value for everyone in the Bored Ape ecosystem. ApeCoin holders can be sure that another viable income stream will be launched, which will undoubtedly stimulate interest in the token and lead to accumulation.
Horizen Labs, the company chosen by the ApeCoin DAO to build the staking product, confirmed in July that development is underway and that the team is targeting a “Fall launch” or September-December period.
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