The arrival of ApeCoin [APE] and its airdrop blew all previous crypto-stories out of the water. The new ERC-20 token reveled in its celebrity and adoration.
The Bored Ape Yacht Club is well-known among crypto traders, but APE opens up a whole new universe of possibilities. Not everyone, though, is convinced.
No Monkey Business
APE surely emerged into the crypto-scene with a great plan to gain additional revenue, according to crypto-researcher Max Maher. He did, however, point out that there is a lot of confusion over whether Yuga Labs or ApeCoin DAO will be in charge of critical APE decisions.
He also dissected the token distribution, questioning whether it was optimal. Maher pondered whether this was fair. Is it fair that insiders receive around 30% of the overall supply, virtually for free?
Furthermore, he stated that, despite the uncertainties, APE could one day challenge the crypto-heavyweights. He explained that if it increased to 6x, it would roughly match Polkadot’s market cap. It is one of the largest and most diverse blockchain-based projects in the world.
However, viewers should be aware that investing in APE is high risk terrain, according to the study.
Don’t Step on that Banana Peel
At the time of publication, APE was trading at $13.65. It has gained 6.01 percent in the last 24 hours and 21.04 percent in the last week. Nonetheless, despite the asset’s surge, a decline in active addresses has raised concerns among some users. Many people are even wondering if APE is a ruse.
Unfortunately, Maher believes this is improbable. He claimed that many of those who acquired tokens during the airdrop chose to sell them fast.
One reason for the decrease in active addresses could be this. More time will be needed to see whether price increases will cause another surge in active addresses.
Significant Fall
On that topic, an examination of APE’s whale transaction counts found a significant decrease. On March 27, 2022, the number of transactions worth more than $1 million dropped from about 150 to around seven.
The judgment is still out on what this means because the token is less than a month old. However, because their transactions aren’t shooting up, one view is that whales aren’t likely profiting.
Exchange supply data for APE is still scarce. Because of this investors should keep an eye on this statistic to see if the biggest players are stocking up on the hot new currency — or getting out as soon as possible.
