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The price of ApeCoin (CRYPTO: APE) had fallen about 17.94% over the last 24 hours as of 10:36 a.m. IST on Monday for no obvious reason other than the broader volatility the new cryptocurrency has experienced since its debut last week. In the last 7 days, the coin has fallen down from US$6.30 to US$3.58 which means an overall fall of 50%. Yuga Labs, which is partnered with the ApeCoin organization and uses the token in conjunction with projects including its Bored Ape Yacht Club nonfungible token (NFT) series, announced in March that it would be launching a new metaverse project. Anticipation for Yuga Labs' Otherside metaverse helped drive pricing gains for ApeCoin over the last month, but the recent rollout for purchases of land in the virtual world has since prompted a substantial pullback for the token's valuation.
ApeCoin price has yet to display any bullish signals to dispute the bearish thesis. The current sell-off was induced by a subtle rejection of the Relative Strength Index on the daily chart.
ApeCoin is an ERC-20 governance and utility token used within the APE Ecosystem to empower and incentivize decentralized community building at the forefront of web3.
ApeCoin holders govern themselves via the decentralized governance framework controlling the ApeCoin DAO, and vote on how the ApeCoin DAO Ecosystem Fund should be used. The APE Foundation administers proposals agreed upon by ApeCoin holders.
ApeCoin is an ERC-20 token launched on the Ethereum blockchain. As a result, it is secured by Ethereum's proof-of-work (POW) consensus mechanism.
Amid the market crash, news of the BAYC collection's social media page becoming a target of the attackers is coming to light.
According to the founder of BAYC, inside sources on Twitter alerted him of the same. BAYC's Discord and Instagram accounts have been hacked in the past as well, and investors have lost NFTs during those attacks, making this a concerning situation.
On the other hand, the recently launched token APE is suffering at the hands of the bears leading to the altcoin falling by 82% since it hit ATH, which was just a little over a month.
Although ApeCoin has managed to score big time in the early days of launch, experts say that its price has failed to establish a close above the 61.8 retracement level. They also warn cryptocurrency investors to not fall victim to the Bored Ape Yacht Club-backed token, seeing the sudden spike because it could entrap them in a bearish trend. Graphs also signal that ApeCoin could easily fall to US$3 or potentially US$1 in the coming days.
Since the emerging VCs are used to reaping good profits at the early stage of Web 3.0 initiatives, they are losing interest in other gradual growth investments. ApeCoin is one of those early profit makers that is diversifying the opinions of VCs today.
Following an extremely successful coin distribution, APE caused massive turmoil on the Ethereum network, fueling a massive fee spike, congesting the network, and making decentralized applications on top of it unusable.
Shortly after, developers behind the NFT collection and coin offered the community to move the coin on their own network to avoid issues with Ethereum in the future despite being accused of providing a problematic code in the contract.
Despite the proposal, the DAO behind the ApeCoin and BAYC collection expressed their negative opinion and stated that APE should remain on the Ethereum chain, moving nowhere else.
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