Why this crypto is different from all the others

When ApeCoin (MONKEY 5.46%) began trading in March, it was clearly a completely different type of cryptocurrency. Talking about ApeCoin is impossible without also talking about Bored Ape Yacht Club, arguably the most iconic and recognizable collection of non-fungible tokens (NFT) of all time. ApeCoin is the official governing token of the rapidly growing Bored Ape ecosystem, so by buying and holding this crypto, you are at least indirectly participating in the upside potential of the Bored Ape Yacht Club.

Until 2022, access to the Bored Ape Yacht Club was restricted to celebrities and wealthy individuals only. Bored Apes routinely sold for over $300,000, and the media was filled with stories of rock stars, movie stars, and millionaires trying to acquire highly coveted Bored Ape NFTs. ApeCoin was specifically created to capitalize on all this excitement around a brand new type of digital asset. However, this close association with the Bored Ape Yacht Club is just the start of what makes ApeCoin so different from all other cryptocurrencies.

ApeCoin and the NFT boom

The creators of Bored Apes have constantly found new ways to expand the NFT concept. For example, the Bored Ape NFT collection was one of the first to explore the idea of ​​”useful” NFTs. In layman’s terms, a “utility” NFT is more than just a funky digital image: It includes benefits, such as the ability to participate in VIP events. By investing in a high-end NFT, you essentially get a digital VIP card to an exclusive private club.

Image source: Getty Images.

With ApeCoin, you get more than just a crypto – you also get access to a developing Bored Ape ecosystem. ApeCoin has become a way for investors to deepen their relationship with Bored Apes. ApeCoin, for example, is the token that powers the new metaverse world of Bored Apes. It is the token that will allow the staking of Bored Ape NFTs you may have in your digital wallet. Some Bored Ape affiliates even accept ApeCoin as a form of payment.

Cryptocurrency or entertainment property?

As you can probably tell by now, it’s increasingly difficult to define exactly what ApeCoin is, and that’s part of what makes it so unique. It is very easy to define what Bitcoin (BTC 3.20%) is for example. Bitcoin is “digital money” or “digital gold”. But what is ApeCoin? At one point or another, it has been called a cryptocurrency, a luxury brand, and an entertainment property.

This last concept – ApeCoin as an entertainment property – is particularly interesting. At this summer’s big NFT conference in New York City, the hot question among the participants was whether NFTs were becoming a new form of intellectual property. Theoretically, every NFT in the Bored Ape Yacht Club collection could become a character for a major entertainment brand. Given that there are 10,000 NFTs in this collection, this is a pretty compelling value proposition. Just like Disney (HAZE 0.33%) has thousands of characters to choose from when creating new movies, comics or games, Bored Ape Yacht Club has thousands of characters to choose from when creating new digital experiences.

Is it time to buy ApeCoin?

It might be easy to discount ApeCoin amid the current state of the NFT market, which has fallen off a cliff in 2022. At a current price of $4.40, ApeCoin is more than 80% down from its all-time high. However, Bored Apes remains a cultural phenomenon. The floor price of a Bored Ape these days – even after a complete meltdown of the NFT market and the onset of crypto winter – is still a staggering $107,748. Sorry to say this, but the value of a single Bored Ape NFT is probably worth a lot more than the car you running right now. It may even be worth more than your house.

This remarkable upside potential is another factor that makes ApeCoin so different from all other cryptocurrencies. Although some crypto-tokens appear to be based on nothing more than thin air and a lot of hype, ApeCoin is at least indirectly linked to the Bored Ape NFTs, which are digital assets that have clear market value. ApeCoin may not be the 800-pound gorilla of the crypto market, but if you’re willing to take the risk and buy into the argument that the NFT market is going to rebound at some point, it may deserve a place in your crypto portfolio.