The Bored Ape Yacht Club-linked ApeCoin (APE) is up 90% on its second day of trading, rebounding to over $15 after lows of $6.48 on Thursday.
“The community involved with the Bored Ape Yacht Club and Mutant Ape Yacht Club is strong,” said Alexandre Lores, director of blockchain research at Quantum Economics.
Lores said that the same traders who would speculate on AMC's stock and the DOGE and SHIB cryptocurrencies might be gravitating toward the “Ape” sector of investments. “The former are producing heavy losses, and it seems to be clear to them that Bored Apes aren’t going anywhere,” said Lores.
“They are a status symbol like a Rolex or a Lamborghini. If you’ve made it, you’ve got an Ape,” he added.
As for the original non-fungible tokens (NFTs), the BAYC floor price sits at 93 ETH (around $260,000), slightly lower than its peak of 107 ETH (around $300,000) following the token announcement on Wednesday.
NFT owners of the coveted Ape collection were airdropped 10,000 ApeCoin each, totaling 15% of the coin’s total supply.
The token’s success has also spawned a slew of various Ape-themed giveaways on Twitter, including an NFT giveaway from crypto exchange Gemini.
“It’s still to be determined what ApeCoin enables beyond governance,” Sean Farrell, head of digital asset strategy at Fundstrat, said. “If history has taught us anything, meme-driven tokens can undergo some pretty crazy episodes of price discovery.”
There may have been another driver contributing to Friday’s ApeCoin bump.
The free-to-play mobile game from Animoca Brands, “Benji Bananas,” adopted APE on Thursday as it transitioned to a play-to-earn model on Ethereum. This started with the launch of a “Benji Pass,” an NFT that will enable its owners to earn special tokens when playing the game. The project said those tokens would be swappable for ApeCoin at an undisclosed rate.
“This gave rise to more speculation for future use cases on APE and resulted in the price reversal,” Lennard Neo, head of research at Stack Funds, told CoinDesk in a Telegram chat.
UPDATE (March 18, 15:09 UTC): Adds Fundstrat quote.
UPDATE (March 18, 15:51 UTC): Adds “Benji Bananas” information, Stack Funds quote.
More from CoinDesk on ApeCoin and Bored Ape Yacht Club:
- A carefully coordinated marketing campaign takes great pains to distance the new token from Yuga Labs, but the firm that created the Bored Ape NFTs appears to be deeply involved.
- The startup is seeking a valuation of as much as $5 billion in the proposed funding round.
- In the world of digital art, one of the few constants is the “fear of missing out” on the next major project. But is there a right time to buy an NFT to increase your chance of making a profit?
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