25 Million APE to be Unlocked for Creators: What it Means for ApeCoin
25 million APE tokens are set to be unlocked this weekend, which represents 8% of ApeCoin’s total circulating supply. The end of the lock-up period is expected to further drive selling pressure on ApeCoin, which is already down more than 6% in the past 24 hours.
Imminent Unlock Likely to Intensify ApeCoin Sell-Off
According to ApeCoin’s official website, 25 million APE tokens, or 8% of ApeCoin’s current circulating supply, are slated to unlock this weekend. The event represents a part of ApeCoin’s predetermined unlock schedule which will ultimately boost Ape’s supply to 1 billion tokens, up from the current 314 million.
“In line with the standard practice, a portion of the tokens for contributors to the project will be initially locked. Locked tokens will be unlocked over a period of 48 months, in accordance with the predetermined unlock schedule in the chart below, starting on launch day, March 17, 2022.”APECOIN ALLOCATION
The release of 25 million tokens is expected to further add to Ape’s sell-off, which has plunged more than 20% in the past month. The token started slipping last month after tech entrepreneur Jeff Huang offered his Bored Ape and Mutant Ape non-fungible tokens (NFTs) up for sale.
APE, launched in March this year, represents the native token issued by the ApeCoin decentralized autonomous organization (DAO), a project focused on facilitating the expansion of the Bored Ape ecosystem. The organization recently launched a news website covering the latest developments regarding Yuga Labs’ initiatives and NFT market data.
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ApeCoin Might Receive a “Much-Needed Boost” From the New Staking System
According to the website, “ApeCoin will be distributed among four main groups” including the ecosystem fund (62%), Yuga Labs (16%), founders of the Bored Ape Yacht Club (8%), and launch contributors (14%). Yuga Labs, the Web3 firm that issued the ApeCoin, is reportedly looking to secure $50 million from the launch of its new Mecha Apes NFT collection.
This weekend’s unlock is reserved for the launch contributors, and Yuga Labs and BAYC founders are set to receive their tokens in March 2023. While ApeCoin did not disclose the identity of these contributors, it is “reasonable to deduce that it includes investors such as a16z, Animoca Brands and FTX” – the funds that provided funding to Yuga Labs and supported the development of ApeCoin DAO – according to crypto research firm Delphi Digital.
In addition to unlocks, ApeCoin is also expected to unveil a new staking feature that allows owners to borrow cryptocurrencies against their Bored Ape NFTs. Analysts believe that the new feature is likely to provide a “much-needed boost that will remind investors of the essence of the coin: Which is to create value for everyone in the Bored Ape ecosystem,” said Chris Esparza, founder of Vault Finance.
Do you think ApeCoin will rebound after the launch of the new staking feature? Let us know in the comments below.