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Bored APE Token Triggers Spike in ETH Gas Prices

The bombshell drop of the APE token sent ripples across the crypto world – with a noticeable effect on ETH gas prices.

Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFTs, has issued its own crypto token. As announced on Wednesday, the new ERC-20 token is called ApeCoin ($APE).

We’re excited to announce we’re adopting ApeCoin as the primary token for the Bored Ape Yacht Club ecosystem as well as future Yuga products and services.

The newly released token will be used in the announced BAYC P2E (play to earn) blockchain game. The game is set for release later this year. Moreover, it will also be adopted in the Animoca Brands game Benji Bananas. Yuga Labs released a total of one billion tokens.

As BAYC is one of the most valuable NFT collections ever, the interest in the token spiked gas prices on the Ethereum blockchain. In fact, on-chain data showed that ETH gas prices surged up to 340 gwei on Thursday, or about $40. Currently, the gas price is circulating at about $10-20.

ApeCoin DAO

ApeCoin has wider ambitions than gaming, Yuga Labs said. Other than in gaming, APE will also serve as the governance token of the newly-formed ApeCoin DAO.

Introducing ApeCoin ($APE), a token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3.

To make sure that ApeCoin serves that purpose, it will be independent of Yuga Labs. Instead, the ApeCoin DAO will be in charge of running and promoting the token. DAO, a decentralized autonomous organization, is a form of a community enabled by blockchain tech.

ApeCoin DAO will collect the income from the sale of ApeCoin. In turn, all ApeCoin holders will control the DAO, with every coin representing a single vote.

Aping In

However, only 47% of tokens were available for purchase. More than half of circulating ApeCoins are reserved for project developers and loyal customers. Therefore, 8% will go to the founders of Bored Apes Yacht Club and 16% will go to the Yuga Labs team.

Another 14% will go to “launch contributors”, probably consisting of Yuga partners and investors. The remaining 15% is intended for Bored Apes and Mutant Apes collection owners. This fact made investors rush to purchase BAYC NFTs to get the new coin. This caused the floor price to skyrocket, from 92 ETH, to nearly 107 ETH. In USD, that means that the least-expensive ape traded at $277,000.

However, the growth was short-lived. Consequently, the BAYC floor price crashed, by as much as 30%.

NFT Giant

BAYC is one of the biggest names in the NFT world. Many A-list celebrities, including Snoop Dogg, have their own Bored Apes. Some even established partnerships with Yuga Labs. Bored Apes are also holding a record of selling the most expensive NFT for $15 million.

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BAYC creator Yuga Labs also owns two other NFT leading brands, CryptoPunks and Meebits. Yuga Labs recently bought the collection from their original creator, Larva Labs.

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