One altcoin running on the Ethereum (ETH) network is seeing massive gains after a new blockchain launched in its ecosystem. ApeCoin (APE), the digital asset associated with the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection, soared to $1.74 on Monday, a 135% jump in value form Saturday. APE began to rally as Apechain […]
The post ApeCoin (APE) Explodes Over 135% Following Launch of Ecosystem’s New Blockchain appeared first on The Daily Hodl.
One of the top memecoins in recent years is rallying after the announcement of a new free-to-play blockchain game. ApeCoin (APE), a memecoin associated with the Bored Ape Yacht Club non-fungible token (NFT) collection, APE hit a high of $1.67 and a low of $1.44 on January 17th – a difference of approximately 16%. APE […]
The post Ethereum-Based Altcoin Leaps 15%+ in Hours After Announcement of a Free-To-Play Game for the Ecosystem appeared first on The Daily Hodl.
A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX) Sushi (SUSHI) and Apecoin APE, the digital asset associated with the Bored Ape Yacht Club non-fungible token (NFT) collection. Pseudonymous analyst The Flow Horse tells his 185,400 followers on the social media platform X that SUSHI looks bullish after recovering the […]
The post Much Higher Prices Are in Store for Sushi and Apecoin, Says Top Trader – Here Are His Targets appeared first on The Daily Hodl.
A closely followed crypto trader says that one mid-cap altcoin is primed for a significant rally in price. Pseudonymous trader Altcoin Sherpa tells his 196,300 followers on the social media platform X that blockchain oracle Chainlink (LINK) will likely break out of a months-long trading range in the next bull market cycle. “LINK: 500 days […]
The post Crypto Trader Says One Ethereum-Based Altcoin Primed To ‘Do Big Numbers’, Updates Outlook on Bitcoin and Polygon appeared first on The Daily Hodl.
Crypto analytics platform Santiment says that three memecoins are taking off even as Bitcoin’s (BTC) price declines. Santiment says that the market caps are increasing for memecoin projects Dogecoin (DOGE), Shiba Inu (SHIB) and ApeCoin (APE). APE is the digital asset associated with the Bored Ape Yacht Club non-fungible token (NFT) collection. According to the firm, […]
The post Memecoin Magic Heating Up As Dogecoin, Shiba Inu and Apecoin Social Buzz Rises, Says Analytics Firm appeared first on The Daily Hodl.
Short sellers are getting slammed by hundreds of millions of dollars worth of liquidations as the crypto markets rally due to XRP receiving a favorable ruling for crypto traders. New data from market intelligence firm Coinglass reveals that during the last 24 hours, $218 million worth of digital assets were liquidated from prominent crypto exchange […]
The post $218,000,000 in Liquidations Hits Short Sellers in 24 Hours As Crypto Market Rallies After Favorable XRP Ruling appeared first on The Daily Hodl.
Litecoin rose for a third consecutive session on Tuesday, despite cryptocurrency markets mostly falling lower. The global market cap is currently down by 1.28%, as overall market uncertainty remains high. Apecoin also rallied, extending recent gains. Litecoin (LTC) Litecoin (LTC) was once again in the green, as the token rose for a third consecutive session. […]
A leading analytics firm says that an Ethereum (ETH)-based altcoin that’s flying under the radar could be gearing up for a big surge. In a new report, Santiment says that ApeCoin (APE), the native token of the Bored Ape Yacht Club community, is displaying the same on-chain signal that decentralized exchange Stargate Finance (STG) flashed […]
The post Big Move Imminent for Ethereum-Based Altcoin, According to Analytics Firm Santiment appeared first on The Daily Hodl.
NFTs were introduced to the world to help solve the illegal use of intellectual properties and protect artists — the very problem Yuga Labs has been accused of doing.
The iconic wolf skull logo of Bored Ape Yacht Club (BAYC), Yuga Labs’ premier nonfungible tokens (NFTs) collections, was allegedly illegally trademarked without proper licenses. The image was originally released by a company specializing in drawing tutorials for children and beginners.
NFTs were introduced to the world to help solve the illegal use of intellectual properties and protect artists — the very problem Yuga Labs has been accused of doing. Crypto Twitter member and NFT artist @Jdotcolombo came across a post from April 5, 2021, in which Easy Drawing Guides advertised “an easy step-by-step drawing tutorial” for a wolf skull.
The art displayed by the company closely resembled BAYC’s official logo, which initially raised suspicion of wrongdoing — considering that BAYC’s Kennel Club collectibles launched on June 17, 2021.
Bro @BoredApeYC @yugalabs what a fucking joke bahahahahaha you got some explaining to do. 4/5/21 and your kennels came out 6/21 and you went and trademarked this skull. Are you guys ok or have you bumped your heads? https://t.co/HiLFdbnFL5 pic.twitter.com/FJigzJgBr8
— COLOMBO (@Jdotcolombo) February 17, 2023
Easy Drawing Guides responded to the commotion to confirm that Yuga Labs did not own a license to use the wolf skull drawing. Taking things one step further, Yuga Labs trademarked the unlicensed logo as its own. In retaliation, Easy Drawing Guides stated:
“The intellectual property rights for the drawing belong to Easy Drawing Guides as it's our original drawing and protected by our Terms and Conditions.”
Cointelegraph confirmed that the terms and conditions of Easy Drawing Guides grant a non-transferable, non-exclusive, revocable, limited license to use and access the Website solely for personal, non-commercial use.
On the one hand, BAYC supporters believe that no intellectual property was breached in using the logo, however, most agree that Easy Drawing Guides is entitled to some serious compensation.
Yuga Labs has not yet responded to Cointelegraph’s request for comment.
Related: Yuga Labs settles lawsuit with developer involved in copycat BAYCs
The intellectual property dilemma is not new for Yuga Labs. One of the founders of the BAYC copycat NFT collection RR/BAYC filed an opposition notice against 10 trademark applications from Yuga Labs.
In the notice, RR/BAYC co-founder Jeremy Cahen highlighted a list of “grounds for opposition” against Yuga Labs’ filings — claiming that the company “abandoned any rights” to certain logo and artwork designs due to BAYC NFT sales granting “all rights” of the digital images to the owners.
The ApeCoin ecosystem is progressing with games and brand-building, but the 100% APY reward for APE staking could eventually do more damage than good.
In January, ApeCoin (APE) had an underwhelming performance compared to metaverse-based tokens like Decentraland (MANA) and The Sandbox (SAND). APE token gained 61% compared to the 90% and 150% respective gains seen in SAND and MANA. The subdued gains can be attributed to the hefty APE staking rewards that is likely creating some selling pressure.
An upcoming unlock of around 9% of APE’s circulating supply in March 2023, along with not-so-impressive fundamentals, will add further headwinds for the token. The gains in APE will depend on the success of the blockchain gaming projects in the ApeCoin ecosystem and new partnerships between Yuga Labs and big brands.
ApeCoin DAO launched its APE staking mechanism in December 2022. The APE staking pool yielded 90% annual returns in the first two months. Holders of the Bored Ape Yacht Club (BAYC) NFTs and related collections are eligible for twice the yields of around 171%, adding significant selling pressure for the token.
However, these traders are primarily interested in capturing risk-free APE gains instead of accumulating the token. Thus, they may eventually become a source of constant selling pressure.
The token has been heavily shorted in the futures market, especially after the launch of the staking mechanism. The funding rate for APE/USD perpetual contracts has been negative since December 2022.
The ApeCoin ecosystem is the most valued metaverse project ,not only in total market capitalization, but also the total value of its virtual world. APE will be the primary currency of the Otherside metaverse. The Otherside metaverse has 100,000 virtual land plots which have a floor value of 1.6 ETH. In comparison, the Sandbox has 113,400 land plots with a floor price of 0.98 ETH.
There will be a total of 200,000 Otherdeeds and currently 100,000 Otherdeeds are available. The other 100,000 NFTs will be awarded to people who hold Otherdeeds and contribute to the development of Otherside.
The decentralized organization has passed numerous grants to develop the Otherside metaverse’s gaming space. The ApeCoin ecosystem will also see a native NFT marketplace and a clothing brand. According to a report from crypto analytics firm Messari, the developments are “helpful, but they are unlikely to drive significant structural demand on their own.”
Although ApeCoinDAO is registered as an independent entity, Yuga Labs plays a big role in its adoption. Recently, the firm launched an endless runner game (think Temple Run), Dookey Dash, for the holders of BAYC and related NFT collectors.
Reportedly, players spent $2 million playing this game. While efforts like Dookey Dash are promising, it failed to generate considerable demand for the token. Most of the money was spent on the NFTs that gave access to the game.
Moving forward, the development and user engagement of the Otherside metaverse will determine the traction for APE’s usage.
Besides the staking reward, the vesting schedule of APE adds additional dilution risk from unlocks of tokens allocated toward the team and investors. These include portions that are unlocked in one go and monthly releases.
On Mar. 15, 2023, another 25 million tokens will be unlocked for launch contributors. Additionally, 8 million tokens allocated to Yuga Labs and BAYC Founders will be unlocked too. Around 8.90% of the supply will be unlocked immediately with additional monthly unlocks.
Related: ApeCoin geo-blocks US stakers, two Apes sell for $1M each, marketplace launched
In 2023, the circulating supply of APE will nearly double, which could induce volatility in the token’s price. Usually, token unlocks mean supply dilution, which adds selling pressure. However, when many traders try to benefit from this plan, the market usually responds by moving to the upside first to wipe out the liquidity of short sellers.
The crucial support and resistance levels for APE/USD lie around $3.29 and $7.69, respectively. If either sellers or buyers can overcome these levels, it could amplify a move in the direction of the breakout.
Still, given the selling pressure staking rewards and upcoming token unlocks, with a lack of real yield or usage of APE, the path of least resistance looks to the downside.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
