The entry of ApeCoin [APE] and its airdrop blew the day’s crypto stories out of the water as the new ERC-20 token basked in its moment of fame and admiration. While every crypto trader worth their salt has heard of the Bored Ape Yacht Club, APE opened up a new world of opportunity.
However, not everyone is convinced of this.
Not in monkey business
Crypto researcher Max Maher admitted that APE has certainly invaded the crypto scene with a solid plan to generate more revenue. However, he pointed out the widespread confusion over whether Yuga Labs or ApeCoin DAO would make major APE-related decisions.
Also, he broke down the token allocation and wondered if it was ideal.
Source: Apecoin.com
Maher considered
“The question is: is that fair? Is it fair that about 30% of all supply goes to Insiders, essentially for free?”
Furthermore, he added that, uncertainty aside, APE might one day challenge the crypto heavyweights. He explained,
“If it [APE] At 6x, it would roughly match the market cap of Polkadot, one of the largest and most diverse projects built on its own blockchain.”
However, it’s worth noting that the researcher warned viewers that investing in APE is a “high-risk area.”
Don’t slip on the banana peel
At press time, the APE was floating between hands at $13.65 after rising 6.01% over the past 24 hours and recovering 21.04% on the week. However, despite the asset’s rally, a drop in active addresses has set off alarm bells for some users. Many even wonder if APE could be some kind of scam.
Unfortunately, Maher suspected that this was unlikely. He claimed that many who received the tokens in the airdrop may have opted for a quick sale.
This could be a factor in the decline in active addresses. Now more time must pass to assess whether price changes can trigger a further increase in active addresses.
Source: Santiment
With that in mind, a look at the Wal transaction numbers for APE showed a steep decline. Transactions greater than $1 million fell from nearly 150 to around seven on March 27, 2022.
Since the token is less than a month old, the jury is still out on what this signals. However, one interpretation is that whales are unlikely to take profits since their transactions are not skyrocketing.
While exchange listing data for APE is still in the making, investors need to keep an eye on this metric to understand whether the biggest players are piling up the hot new token — or exiting as soon as possible.
Source: Santiment