The entry of ApeCoin (APE) and its airdrop blew the crypto stories of the day instantly as the new ERC-20 token gained popularity and popularity. While every crypto trader worth their salt has heard of Bored Ape Yacht Club, APE has opened up a whole new world of potential. However, not everyone is convinced.
ApeCoin (APE) may be monkeying around, but should investors get serious
Cryptocurrency researcher Max Maher admits that APE has exploded on the crypto scene with a sensible plan to earn more revenue. However, he points to widespread confusion about whether Yuga Labs or the ApeCoin DAO will handle major decisions regarding APE. Furthermore, he broke down the token allocation, wondering if it would be ideal.
However, it’s worth pointing out that the researcher cautioned viewers that investing in APE is “high-risk territory.”
APE/USD 4-hour chart | Source: TradingView
At press time, APE is oscillating between hands at $14.94, up 6% over the past 24 hours and up 21% on the week. The drop in active addresses despite the asset’s recovery has set off alarm bells for some users. Many people even wonder if APE could be some scam.
Maher, alas, hypothetically, this is unlikely. He stated that many people who received tokens during the airdrop may have chosen to sell quickly.
This could be a factor behind the inactive drop addresses. More time is needed to assess whether the price change could trigger another inactive spike address.
On that note, looking at whale trade numbers for APE shows a sharp drop. Transactions involving more than $1 million fell from nearly 150 to about seven on March 27, 2022. Since the token is less than a month old, the jury is still on what this signifies. However, one explanation is that whales cannot profit because their trades don’t increase.
While exchange supply data for APE is still nascent, investors will need to keep an eye on this metric to understand whether the biggest players are accumulating hot new tokens – or exiting ASAP.