Both currencies are locked to gaming accounts without blockchain networks and smart contracts.
So, what is ApeCoin, and where can you spend it?
What Is ApeCoin?
Otherside aims to be more than just a blockchain game, similar to the mega-popular Axie Infinity.
The “metaverse” bit in that equation just means that people can use theirMetaMask walletto import their NFTs.
At least for those NFT projects that Yuga Labs will support.
Image credit:ApeCoin
While the company that launches blockchain tokens doesn’t directly affect its price, it does so indirectly.
For example, Yuga Labs' development of the Otherside platform increases ApeCoin’s utility value.
Additionally, token issuance itself affects its value.
Image credit:TradingView
You may have noticed that the Federal Reserve increased its balance sheet by $4.6 trillion since 2020.
Such unprecedented money supply increase triggered the current out-of-control inflation.
The same principle applies to blockchain tokens as wellhigher supply dilutes the demand, which devalues the token.
Image credit:Benji Bananas
Even more importantly, that one billion is a hard token supply cap.
Meaning, further ApeCoins cannot be minted or burned.
In charge of APE distribution is the ApeCoin DAO, adecentralized autonomous organization.
This attracts public scrutiny and triggers the FOMO instinctfear of missing out.
Of course, the selloff pressure created then has a domino effect on suppressing the price.
By doing this, Yuga Labs expanded the access to the coin but also created a code exploit.
Suffice to say, the end result was a shadow on the team’s competence for future projects.
What Can ApeCoin Be Used For?
As an Ethereum-based token (ERC-20), ApeCoin is yet to grow to its full potential.
The governance part refers to token holders' voting rights on the direction of the ecosystem and partnerships.
The utility part refers to using APE coins for whatever utility new projects demand.
For example, ApeCoin will be used for aplay-to-earnmobile game, Benji Bananas, owned by nWay.
Speaking of which, all NFTs released by Yuga Labs in the future will be minted with ApeCoins.
This already happened withOtherdeed NFTsland plot NFTs costing 305 APE a piece when launched.
So far, Yuga Labs has collaborated with a number of other NFT projects.
Is ApeCoin a Meme Coin?
That is a solid foundation to create competent blockchain games and rich metaverse experiences.
However, it is yet to be shown if Yuga Labs knows how to manage that money properly.
On this lies the future value of ApeCoin more than anything else.
With that in mind, calling APE a meme coin would be incorrect.
Neither BAYC NFTs nor upcoming concrete software constitutes social media vaporware, which meme coins revolve around.
