Mar 22, 2022

$APE SZN - 🎁Wrapped: The Weekly Web3 Newsletter

By Futureproof • Issue #19 • View online

3.22.22

By @DepecheNode_

$APE SZN

Once again, Yuga is dominating the headlines with the release of $APE coin and a teaser for its upcoming metaverse game ‘Otherside’. I’ll stop writing about BAYC as soon as they stop doing huge things, I promise. Maybe next week? For now, let’s dive into how $APE works, and what it means for the ecosystem.

$APE Tokenomics

Total Supply: 1 Billion Total $APE (fixed amount)

Circulating Supply: 131,000,000

% of $APE Claimed from Airdrop: 84%

MCAP: $1.3 Billion

FDV: $10 Billion

Allocation:

So, why should $APE exist? Well, some argue that it shouldn’t. But that’s another post for another day. Here’s why it does exist:

It acts as the governance token for the newly formed ApeCoinDAO
It will be used as the unified currency for the BAYC universe, including the upcoming ‘Otherside’ game being created by Yuga Labs & Animoca (potential April launch?)
In-game currency for 3rd party games that would like to join the $APE ecosystem
A utility token for exclusive access to BAYC merch, events, etc.

The Bull Case

Yuga’s metaverse is likely to become a formidable competitor to Decentraland & Sandbox. I’ve never really spent any time in decentraland/sandbox, but I’m absolutely planning on checking out BAYC’s world.
The $APE token opens the door to more participants in the BAYC ecosystem & expands the community beyond PFPs with the launch of ApeCoin DAO. More participants = more demand.
$APE has incredible memetic value with potential to flip $DOGE & $SHIB
The ‘Otherside’ trailer indicates Yuga is serious about this whole game thing. Could be big. Third party games are already adopting $APE as in-game currency.

The Bear Case

Almost no airdropped tokens have performed well in the long run.
With a fully diluted value of $10B only one week after launch, much of the upside could be considered priced in.
The token was launched before the metaverse/game/utility was built, reminiscent of the ICOs of yesteryear.
Introducing a coin is a risky endeavor for the BAYC brand - its perceived value will have an effect on how the brand is viewed. Generally, the NFT community does not have a deep knowledge of how fungible tokens operate - rekt sellers may sour on the brand.

My Analysis

Fading Yuga Labs has been the worst idea of this entire cycle. They have not yet given us a reason to doubt their abilities, and the community/brand recognition are incredibly bullish for the future of the $APE ecosystem. BAYC’s cultural impact and ability to bridge the gap between web2 and web3 opens the door to a massive audience. However, with a $10B FDV and all eyes on the king, we now have very high expectations and execution risk. What happens if Yuga’s game sucks? What happens if the brand makes too many missteps and is canceled or fades into irrelevance? The circulating supply of $APE will approximately double in the next year, meaning well over 100 million coins will be available for sale.

I was excited about the $APE launch and told everyone I’d be buying as much as I could sub $5. It never got that low. My mid-IQ brain is concerned at the high valuation, but the ape in me tells me Yuga Labs might end up actually creating THE metaverse (sorry Meta). So, here’s what I’m doing for now:

The Depeche Node Airdrop Rule (DNAR™) states that one must sell 50% of airdropped rewards within the first week of launch. I followed this rule and sold half of my allocation.
I’m HODLing the other 50% of the airdrop and waiting to see what utility looks like for the token.
Sell if price hits $20
Buy if price dips below $5

*NFA I’m just a guy writing a newsletter for fun

Weekly Highlights

Weekly Winners: WoW 12.8, Azuki 12, Unigrids 10, Ghxsts 7, Meebits 5.5, Cryptoadz 3, Pudgy Penguins 1.2, Raid Party 2.4
Weekly Losers: CryptoMories .54, Wicked Craniums .14, NeoTokyo 10.2, Peaceful Groupies .14, Cyberkongz VX 1.55

DISCLOSURE: I own NFTs. Specifically, punk #2971 if you’d like to dig around.

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By Futureproof

Explorative, web3-centric market analysis and digests. Advisory and Angel updates.

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