- 14:22 ET, May 4 2022
- Updated: 14:22 ET, May 4 2022
THERE’S been a fair share of success – but a lot of volatility in the early trading days of ApeCoin.
ApeCoin, which launched trading in March, hit all-time high of $39.40 that month.
While it’s had some success, you need to be aware of a couple of risks.
One of them is volatility – meaning your assets could rise or fall rapidly.
For example, ApeCoin is down more than double from its all-time high now.
Buying too high is risky especially when it comes to newer cryptocurrencies like ApeCoin.
Sometimes, a lot of euphoria will come out from investors during the first few days of trading.
What they might do is buy it – hoping the price surges – and then cash out with their profits before it potentially crashes.
That sent ApeCoin a high of $17.21 today.
“There is only as much value in the token as the project administrators can build into and around it. That and the amount of hype that is generated around it in social media,” he told The Sun.
But in mind that meme coins can tumble at any point, should the community lose interest.
What is ApeCoin?
Despite the warning signs, ApeCoin does have a few things that stand out.
The cryptocurrency was airdropped to prominent non-fungible token (NFT) collection Bored Ape Yacht Club and Mutant Ape Yacht Club.
For context, celebrities including artists Eminem and Justin Bieber have bought Bored Ape’s NFTs.
And the picture Mr Musk used on Twitter was from the same NFT.
Importantly, ApeCoin describes the APE Foundation as the “steward” of the token.
The foundation, which is managed by ApeCoin DAO, has its governance community-led and decentralized.
“The goal of the APE Foundation is to steward the growth and development of the APE ecosystem in a fair and inclusive way,” ApeCoin said on its website.
“It utilizes the Ecosystem Fund, which is controlled by a multisig wallet, to pay its expenses as directed by the ApeCoin DAO and provides an infrastructure for ApeCoin holders.”
Under the DAO, all token holders are members – meaning they can weigh proposals from the community and vote on them.
While trends can be tough to forecast, Mr Francis calls ApeCoin a “memecoin pump” and recommends avoiding the token if you’re a retail investor.
“Apecoin looks a lot like DOGE and SHIB,” he said
“So in the short term, there could be a large momentum trade leading to much higher prices. But in the long term, and after the hype has subsided, I think APE will decrease substantially in value.”
Some have posted price predictions.
For example, PricePrediction sees ApeCoin averaging $20.30 this year, before jumping to $28.66 in 2023.
By 2023, the crypto forecaster predicts the price will skyrocket to an average of $580.55 in 2031.
Meanwhile, Wallet Investor sees ApeCoin’s price exceeding $30 in a year’s time.
To hit $30, ApeCoin would need to nearly double its current value.
We recently did a price prediction for JasmyCoin.
Plus, a crypto scam recently involved a user losing $300,000 worth of Bitcoin after thinking she’d found love on a dating app.
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