Is ApeCoin (APE) Only Making The Rich Richer?

Published by
Is ApeCoin (APE) Only Making The Rich Richer?

ApeCoin was launched to much fanfare by the ApeCoin DAO, and it was revealed that the coin would play a major role in Yuga Labs soon to be launched Metaverse space. 

The token was also airdropped to holders of Yuga Labs Bored Ape and Mutant Ape NFT collection as a kind of reward.

While the asset’s value is currently at around $14, the launch of ApeCoin has been surrounded by different forms of controversies as questions have been raised about the beneficiaries, style of launch, and its tokenomics.

Advertisement

ApeCoin Controversies 

Described on the website as DAO-powered, the coin gives holders special power to influence decisions on how the Bored Ape community would be managed. This collective governance process would be done through voting using the blockchain. 

However, despite the “decentralized” nature of the project, crypto experts are seeing something different, considering the category of people who received the airdrop. Looking closely at the distribution, the coin, which symbolizes power, seems concentrated in the hands of some people and entities. 

Per available information on the website Yuga Labs, its founders and holders of BAYC would get around 38% of the token. VC partners like Andressen Horowitz would get 14%, while the Jane Goodall Legacy Foundation and the DAO treasury get the remaining percentage of the coins.

This, no doubt, raises the question of if this asset will truly be a decentralized infrastructure.

Considering the number of tokens in the hands of corporate entities and Yuga Labs, while also bearing in mind that the more coins you have, the more you’ll be able to sway the DAO’s decision, it essentially gives power to a selected few.

Advertisement

The Rich getting richer

The amount of tokens in the hands of VCs and corporate firms is around 37%, thus making them richer. With the current worth of ApeCoins, it can be said that it’s easier for VCs to get their money back; and even more, if the coin keeps rising. 

ApeCoins, in the hands of VCs, is valued to be worth something around $2 billion, which is more than their initial investment. The twist, however, is that the companies can decide to sell their assets at any time, and this would hurt the market if done, considering the number of assets they hold.

Advertisement

Share
Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Bitcoin News

99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction

Bitcoin (BTC) is in profit on almost all of its supply, leading to discussion by…

October 5, 2025
  • 24/7 Cryptocurrency News

Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement

Pro-crypto Mike Selig is reportedly the frontrunner to become the next chair of the U.S.…

October 4, 2025
  • 24/7 Cryptocurrency News

‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications

Nate Geraci, president of Novadius Wealth Management, has predicted that several crypto ETF filings could…

October 4, 2025
  • Bitcoin News

Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model

Bitcoin-backed stocks of Strategy can now be accessed on Robinhood. This represents a significant move…

October 4, 2025
  • Bitcoin News

Bitcoin ETFs See 2025 Record Weekly Inflows of $3.2B as BTC Eyes New ATH

The Bitcoin ETFs have seen a huge turnaround this week, recording their largest weekly inflows…

October 4, 2025
  • 24/7 Cryptocurrency News

Expert Predicts SHIB Rally as Shiba Inu Restores Shibarium After $4M Hack Shutdown

Shiba Inu’s Layer 2 network, Shibarium, has returned online following a $4 million exploit that…

October 4, 2025