What happened
Over the last 24 hours, the price of ApeCoin (CRYPTO: APE) has popped roughly 26% as of 10:58 a.m. EST after rumors began circulating that ApeCoin might be used to process land sales transactions in the metaverse.
So what
ApeCoin has been on a strong run. The token is connected to the Bored Ape Yacht Club's non-fungible tokens (NFT), a popular and expensive batch of NFTs that depict a variety of apes with different facial expressions and wardrobes. Yuga Labs, which created the NFTs, owns 16% of outstanding ApeCoin tokens, and the founders of Yuga Labs own another 8%.
Image source: Getty Images.
The surge in the price of ApeCoin comes after rumors on social media that owners of Bored Ape Yacht Club and Mutant Ape Yacht Club NFTs may get the opportunity to purchase virtual land in a metaverse platform created by Yuga Labs. The platform would allow users to launch metaverse characters from their NFT collections. The rumors also suggest that ApeCoin would be the cryptocurrency used to facilitate these transactions.
Other rumors are circulating that Yuga Labs may conduct this sale through a Dutch auction and start the bidding at around 600 ApeCoins, or roughly $10,700.
Now what
The metaverse is definitely a hot topic right now, so it's easy to understand why a cryptocurrency might rise if it will be used in it.
But while I can appreciate the community Bored Ape Yacht Club has built up and the interest around its NFT collection, I am still somewhat unsure about how successful ApeCoin can be, considering I don't see any real unique or technical advantages in the token other than its connection to Yuga Labs.
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