Apecoin (APE), the cryptocurrency launched by Yuga Labs, creators of Bored Ape Yacht Club, rose nearly 65 percent last week, but suffered a correction over the weekend. It can be said that the rally took place as the sale of land on Yuga’s newest project, Otherside, has begun. The first land sale for Otherside, a Bored Ape-themed metaverse and virtual world, opened with high expectations on April 30. So what does the future hold for metaverse coin APE? As Kriptokoin.com, we report the developments and future expectations for Apecoin.
Problems in the sale of land make investors think
Real estate in the metadata base has become a trending asset. So when the company behind the most successful NFT project on the market decided to auction off the land in the metadata, there were ripples in the crypto world. As a result, the price of Apecoin, the only currency that can be used to buy land on the Otherside, has risen. While the excitement of its launch has taken cryptocurrency to new heights, the issues with Otherside’s launch have made even the most passionate APE supporters question the future of cryptocurrency. In the days before Otherside was launched, there was a lot of excitement among the crypto community, which prompted investors to invest in Apecoin. Apecoin, APE price, which was around $13 on April 1, skyrocketed to $27 on April 28. This rise has made it more valuable than any other metaverse cryptocurrencies, including Mana or The SAND. Chasten Hamilton, founder of Web 3.0 investment firm 6056 Digital, said:
The reason Yuga launched was to include people who missed the original NFT drop a year ago but wanted to be part of the Bored Ape ecosystem. The goal is to be egalitarian.
However, the Otherside auction did not fully meet these high expectations. On the highly anticipated launch day, many investors who were planning to purchase land failed to do so. The problem was the high Ethereum gas fees. Buyers encountered very high gas fees when trying to purchase one of the 55,000 available Otherdeeds. As the demand for transactions on the Ethereum blockchain grows, so do gas fees, and the Otherside launch revealed astronomical gas fees. To print a plot, an investor has to pay a gas fee of 2.6 ETH or $7,000. The auction raised $300 million for Yuga, while it cost investors $176 million to print Otherdeeds. Unfortunately, although the launch was intended to be “egalitarian”, it failed to achieve its purpose due to rising gas fees. Serial NFT founder Olumide Gbenro described the event in these words:
A moment when the rich get richer. While I’m thankful I was able to afford it, most people were priced in and BAYC knew it was going to happen. They are not as inclusive and egalitarian as they say.
What awaits Apecoin (APE) in the future?
Apecoin price dropped after Otherside opened. While the cryptocurrency was just over $25 on April 30, it dropped to around $15 on May 3. This is likely due to a combination of negative publicity and Apecoin benefit going forward following the auction’s failures. The only other use case for APE as currency, for now, is to buy officially licensed Bored Ape products. Becks Perfect, founder of Nifty World NFT, said he was pleasantly surprised that the token didn’t drop any more than it actually did, adding:
Besides issues with general printing, negative community sentiment and the first few years to follow the auction Seeing a correction after the market inevitably settles during the day was something we expected. There was a fear that it might fall further. More platforms like Opensea are accepting it for trading and we predict it will rise again when the dust settles and the next big announcement from Yuga Labs.
Hamilton echoed these views and said, “Investing in Apecoin is getting a stake in the leading Web3 company Yuga Labs.” The success of the Bored Ape Yacht Club solidified its position in the world of NFTs. However, with the declining stance in the crypto world after the launch of Otherside and less benefit for Apecoin in the short term, it seems unlikely that the price of the token will increase as quickly as before the metaverse opened up…
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