Apecoin, the crypto token of the Bored Ape Yacht Club (BAYC) community, hits a new all-time high as prices pump by 40%. It is now trading at $16.24, and it has also become the 33rd largest coin by market cap. There is a good community for the token, and we might see it pump even further in the future, but you still shouldn’t buy it. There is a huge risk involved, and it might not be what you think.
Why should retailers stay away from Apecoin?
When investing in any relatively new cryptocurrency, we ought to see whether it is decentralized. If not, what margin of the circulating supply is available to the public and the proportion. All this is extremely important, so retail investors don’t fall prey to pump and dump schemes. Well, when you start researching about Apecoin, that’s where the problem starts.
There are approximately 48k Apecoin holders, which is a decent number considering the age of the coin. However, if we see the distribution among these investors, it’s very concentrated among the top. The first 10 holders have 9.15% supply, the top 20 hold 14.15% supply, the top 50 have 29.15% supply, and the top 100 have 52.35% of the entire supply. If you expand even further, the top 150 Apecoin holders own more than 70% of the total circulating supply of the coin.
We do have Binance in the top 100 holders, so you can subtract the 3% of the total supply they have. Still, the concentration at the top is too high. When the prices pump higher and they take profits, Apecoin is going to crash badly. And the only ones taking the losses will be retailers because they always get in late. I hope that now you understand why investing in Apecoin is probably a bad idea.
ApeCoin claims to be a decentralized project modeled off Yuga Labs’ Bored Ape Yacht Club. It was created to be utilized inside the APE Ecosystem, which is being backed by the APE Foundation. The ApeCoin DAO seeks to establish and sustain the APE Ecosystem in a fair and inclusive manner by offering an infrastructure for ApeCoin holders to participate via open and permissionless governance mechanisms.
What are your thoughts about Apecoin as it hits a new all-time high? And are you convinced not to invest in it? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.