Crypto

Why this crypto is different from all the others | The Motley Fool

When ApeCoin (MONKEY 4.60%) started trading in March, it was clearly a very different type of cryptocurrency. Talking about ApeCoin is impossible without also talking about the Bored Ape Yacht Club, arguably the most iconic and recognizable non-fungible token (NFT) collection of all time. ApeCoin is the official governance token of the 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 Bored Ape Yacht Club was limited to celebrities and wealthy individuals. Bored Apes regularly sold for over $300,000, and the media was filled with stories of rock stars, movie stars, and millionaires trying to scoop up highly desirable Bored Ape NFTs. ApeCoin was specifically created to tap into all of this excitement surrounding a whole new type of digital asset. However, this close affiliation with Bored Ape Yacht Club is only the beginning of what makes ApeCoin so different from all other cryptocurrencies.

ApeCoin and the NFT boom

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

Image source: Getty Images.

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

Cryptocurrency or entertainment property?

As you’re probably realizing by now, it’s getting harder and harder 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 3.22%) is, for example. Bitcoin is “digital currency” or “digital gold”. But what is ApeCoin? At one time 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 major NFT conference in New York, the burning question among attendees was whether NFTs were fast 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. Considering there are 10,000 NFTs in this collection, it’s a pretty compelling value proposition. As disney (SAY 0.33%) offers thousands of characters when creating new movies, cartoons or games, Bored Ape Yacht Club offers thousands of characters when creating new digital experiences.

Is it time to buy ApeCoin?

It can be easy to undercut ApeCoin in the current state of the NFT market, which fell off a cliff in 2022. At a current price of $4.40, ApeCoin is over 80% below its all-time high. However, the Bored Apes remain a cultural phenomenon. The bottom price for a Bored Ape these days – even after a complete NFT market crash and the onset of crypto winter – is still a staggering $107,748. Sorry to say, but the value of just one Bored Ape NFT is probably worth a lot more than the car you’re driving right now. It might 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 seem to be based on nothing more than hot air and a lot of hype, ApeCoin is at least indirectly related to Bored Ape NFTs, which are digital assets that have a clear market value. ApeCoin may not be the £800 gorilla of the crypto market, but if you’re willing to take risks and accept the argument that the NFT market is going to bounce back at some point, then it might deserve a place in your crypto wallet.

Dominique Basulto has positions in Bitcoin. The Motley Fool has posts and recommends Bitcoin and Walt Disney. The Motley Fool recommends the following options: January 2024 long calls at $145 on Walt Disney and January 2024 short calls at $155 on Walt Disney. The Motley Fool has a disclosure policy.

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