Launch contributors will receive over 25 million APE tokens. This represents nearly 8% of the total circulating supply. ApeCoin’s APE tokens fell early Friday in anticipation of a weekend token unlock that would release more than 25 million tokens and increase selling pressure.
APE is the native token for the ApeCoin decentralized autonomous organisation (DAO), which is a community-focused effort to guide the Bored Ape ecosystem’s growth and development. The tokens were released in March and distributed to Bored Ape NFT holders.
8% of Apecoin Tokens will be distributed to launch contributors
25 million tokens, which represent 8% of ApeCoin’s current circulating supply, are part of a planned series that will eventually lead to a final supply supply of 1 billion APE. This would be an increase from the current 314 millions.
62% of the total supply is for the ecosystem fund. 16% goes to Yuga Labs, ApeCoin issuer Yuga Labs. 8% goes to founders of Bored Ape Yacht club (BAYC), and 14% go to independent launch contributors. This weekend’s unlocks will be for Yuga founders and BAYC founders. They are set for March 2023. Contributors have a token supply that includes this weekend’s unlocks.
Some investors of Apecoin include a16z and Animoca Brands
The public is not able to see the names of these contributors. Delphi Digital, a crypto research firm, stated in a Friday statement that it was “reasonable” to conclude that the fund includes investors such as a16z and Animoca Brands. This is because the funds were part of Yuga Labs funding rounds and helped develop ApeCoin DAO.
Delphi analysts said that “The million-dollar question” is whether launch contributors will be able to sell their tokens after they are released. This will result in significant selling pressure for $APE.
APE traded at $4.80 during Asian morning hours. This is 6.5% less than the previous 24 hours, even though broader crypto majors were nominally changing. The tokens lost 21% in value over the past month, while bitcoin and ether remain range-bound.
Analysts pointed out, however, that ApeCoin Staking – which would allow holders of Bored Ape NFTs to borrow cryptocurrency against them – will likely be a catalyst in the next months.
“The upcoming staking function will be the much needed boost that will remind investors about the essence of coin: Which is create value for all in the Bored Ape eco-system,” stated Chris Esparza (founder of Vault Finance), in a Telegram message.
Esparza said that ApeCoin holders could be certain of another income stream being launched. This would undoubtedly revive the interest in the token, and lead to accumulation.”
Horizen Labs was the company chosen by ApeCoin DAO for the development of the staking product. In July, the company confirmed that the development was ongoing and that the team was aiming to launch the product in the autumn, or between September and December.