Is ApeCoin The Coin of The Metaverse?

When a new cryptocurrency is introduced, the reactions are always volatile.

I remember early talk of Bitcoin in 2010, when the only sites you could access it on looked like shady, ad-ridden, back worlds of the internet. It was a new concept and only the die hards really bought into it back then. People had no idea what the blockchain was and the idea of "internet money" felt like something small out of video games.

Flash forward to 2022 and Bitcoin has been normalized. Nation states have backed it. Well respected investors and institutions have added offerings. Today you can easily buy into Bitcoin from supposedly "trusted platforms."

Then there was the wave of meme-coins like Shibu Inu and hundreds of other such coins looking to capitalize on the craze. There are no fundamentals that drive these coins other than the errant tweet from cult leaders like Elon Musk.

With last week's release of ApeCoin in connection with Yuga Labs and the Bored Ape Yacht Club NFT phenomenon, a new type of coin has been thrust into the conversation. And as expected, reviews of the coin are mixed early on. Bears lump the primate branded coin in with fleeting meme coins that have looked to cash in on a weekend's worth of hot press. Bulls are dropping extensive, hyperbole-filled Twitter threads designating the newly minted coin as the currency of the revolution. Mixed in with all this is accusations of pumping one's bag.

While it is too soon to render historical judgement on ApeCoin, the early documentation and investor backing does indicate something more than a meme coin level of shallowness. There is a grander vision attached to the coin around creating a multi-metaverse ecosystem which is powered entirely by ApeCoin. Right now, the evidence is mere speculation as Yuga Labs only offers six to seven figure Bored Ape NFTs and recently acquired supporting blue chip NFT collections on their roster.

But you can imagine that one day, there will be an "Apple" of the metaverse. A singular entity that manages to create a space where the NFTs travel freely, digital goods are bought and sold at scale and the ecosystem offers something for everyone to enjoy. Think: what Apple did with the App Store and turning it into a connected juggernaut and network effect supercharged revenue stream.

Right now, most NFT projects exist in bare-bones isolation. People might buy into them for the art or the hopes of scoring a free or exclusive hooded sweatshirt. This is like when an iPhone came with a calculator and a flashlight. But now imagine all of these developers working like crazy in the shadows to build apps, experiences, games and utilities. There are thousands of these projects going on. And they will all need somewhere to live.

You can imagine a world were the ApeCoin powered metaverse becomes that App Store and connected marketplace where all layers of apps and games can live. Where you can drop in, with whatever digital identity you want to rep, and play in a casino, play a game of basketball, buy digital clothes for your avatar, meet up with friends, watch videos and do all the things you already do in different places right now. But what if Yuga Labs is able to create the singular space where you can do all of this? Developers would be incentivized to build amazing experiences because they would be able to reap the profits in ApeCoin. It's just like developers who try to get into the App Store and secure their cut. The difference is, or should be, that in the web3 ethos, more of those earned profits should go back to the creators. If there is a standardized and frictionless payment system built into the App Store of the metaverse, you will start to see creators switching their focus in mass.

Who knows if Yuga Labs will be able to create the platform that unifies a critical mass of metaverse projects, but as the first mover and leading brand in the native space right now, they are the only ones to have a chance. Facebook, I mean, Meta, has the existing network effects to make a powerful entry into the metaverse, but they will need to prove that they can keep the creators and users as a priority, which would be a stark contrast to the web2 ethos of company control that they have operated in.

There is no telling what will happen next, but I think it's fair to give ApeCoin and Yuga Labs a chance. They have boldly taken a step into the metaverse and have the positioning to connect the dots and bring a hell of a lot of users with them. The question will is, will the users want to stick around once they find what is waiting for them? Whoever can offer the best experience and financial rewards to participate in their metaverse, will emerge a winner.