Introduction
Before you buy apecoin, you need to understand its pros and cons in detail. It is because this digital asset is not like other cryptocurrencies. It has something unique to offer in the Non-Fungible Tokens (NFTs) space.
Moreover, cryptocurrencies like Bitcoin, Litecoin, Dogecoin, etc., can only be used to settle transactions online. However, ApeCoin has changed the in-game rewards and become the most popular payment method in the mainstream.
Although it can be a great investment opportunity for you all. But, you should not forget that it is still a cryptocurrency with some benefits and limitations. This article gives you a detailed list of the pros and cons that you need to know before keeping your hands on this coin.
Pros Of Buying ApeCoin
Certified Safe By Certik
Certik, a leading security-focused ranking platform, monitoring and analyzing blockchain protocol has given this cryptocurrency a pass in terms of security. This shows the authenticity and credibility of this crypto project. It contains a security score of 95 out of 100.
According to this platform, ApeCoin is:
- Healthy and has real-time transactional tracking systems.
- Positive in terms of social monitoring and sentiment analysis.
- Sturdy for checking the tracking of privileged movements.
- Robust for indicators over trading volume, liquidity, and death.
- Safe based on 15 safety and hazard evaluations.
Valuable Brand
By April 2022, more than 18.500 cryptocurrencies are available in the market. This fortune had enabled developers to create tokens that do not have sturdy innovative technologies behind them. Moreover, an ecosystem like ApeCoin adds a more decentralized application to the decentralized finance space. This is making it a valuable brand in the mainstream.
Extremely Popular
For a cryptocurrency exchange that has been a month since being considered a crypto trading asset, APE is becoming more popular than some existing digital assets.
ApeCoin thrives on the Bored Ape Yacht Club project of Yuga Labs. BAYC has one of the most dynamic ecosystems in the entire NFT space. BAYC and the Mutant Ape Yacht Club continue to have a positive impact on ApeCoin.
If there is news about future NFT projects, the effect will be an increase in APE prices. Moreover, APE’s popularity has skyrocketed with its public listing. Exchange accessibility plays a valuable role in their health.
Cons Of Buying ApeCoin
Relies On Price Patterns Of Bitcoin
Despite its young trading history, the cryptocurrency is showing signs that it will follow the Bitcoin price pattern.
Although APE is new to the market, which explains why investors poured liquidity into the token in the last two weeks of March 2022, the market as an entire is trying to recover over the same period. It means that APE has not yet found the independence needed to be a successful cryptocurrency.
Not An Independent Blockchain
ApeCoin is placed in the Ethereum ecosystem, which brings several benefits to the project. Some of these benefits include, but are not limited to, APE interoperability with stablecoins, decentralized applications (DAPP), decentralized oracle network, non-exchangeable tokens, and decentralized cloud storage network.
Lack Of Real-World Utility
With less than a month’s trading experience, the token relies on speculation (supply and demand) and influence from the Bored Ape Yacht Club to determine its true value.
All currencies have six attributes that give them value. Digital currencies have this property. Cryptocurrencies are not only transferable, rare, durable, tamper-resistant, and shareable, but also have utility attributes.
This means that it must be able to pay for goods and services through the trust placed in them by residents of a particular geographic location.
Conclusion
According to 95% of analysts, experts, and trading experts, ApeCoin is a good investment. With that in mind, you should know that investing in cryptocurrencies depends on two factors, risk, and reward.
You should not forget to find the answer to the question, do the potential benefits of investing in ApeCoin outweigh the potential consequences of the risks of investing in APE?
ApeCoin certainly has some risk factors (this is a relatively new project and relies too much on the Bored Ape Yacht Club). On the other hand, ApeCoin is gaining acceptance in the real world with its listing by TIME magazine as a payment method for digital customers.