The entry and airdrop of ApeCoin (APE) into the crypto space instantly blew up the crypto narratives of the day as the new ERC-20 token gained popularity. While every crypto trader has heard of Bored Ape Yacht Club, APE has opened up a whole new world of potential. However, not everyone was convinced of this potential.
Should ApeCoin (APE) investors get serious?
Cryptocurrency researcher Max Maher acknowledges that APE has exploded into the crypto scene with a logical plan to generate more revenue. However, it points to widespread confusion over whether Yuga Labs or the ApeCoin DAO should handle key decisions regarding APE. He also shared information regarding the token allocation, saying that he thinks the coin is ideal.
However, it’s worth noting that the researcher warned followers that investing in APE is “high-risk territory.” At the time of writing, APE is changing hands at $15.29, up 10 percent in the last 24 hours and 58 percent a week. Despite the asset’s recovery, the decline in active addresses sounded alarm bells for some users. Many people even wonder if APE is a scam.
Investors should pay attention to this metric for APE
Hypothetically, this is unlikely, Maher said. He noted that many people who bought tokens during the airdrop may have chosen to sell quickly. This could be a factor behind inactive airdrop addresses. According to the researcher, more time is needed to evaluate whether the price change could trigger another inactive increase address.
Meanwhile, whale trade figures for APE have dropped sharply. Transactions exceeding $1 million fell from about 150 on March 27, 2022 to about seven. What this means is unknown as the token has been in circulation for less than a month. However, one explanation is that whales are not making a profit because their trade has not increased. While the stock market supply data for APE is still in development, investors will need to pay attention to this metric to understand whether the biggest players are accumulating hot new tokens or exiting soon, according to experts.
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