ApeCoin (APE) experienced a massive increase in its market capitalization by over $1 bn earlier today. The ApeCoin is the name of the token connected to Yuga Labs’ Bored Ape Yacht Club (BAYC) system.
Reports say that the coin’s worth spiked by approximately 15% by about $850 million before it later retracted its steps. The heightening worth of the coin happened after Elon Musk utilized footage of an ApeCoin on his Twitter account.
Rumors on the world’s richest man says that he purchased an ApeCoin for 569 ETH. However, it’s not certain whether or not Musk purchased any ApeCoin as the rumors say.
Reacting to Musk’s utility of the image, Michael Bouhanna, a senior official at Digital Art, tweeted that Elon Musk used the ApeCoin’s image outside the owner’s permission. The digital creator expressed hope in the tweet that Musk would acknowledge the source of the coin, or remove the image.
Otherwise, he asked Musk to present to him the initial image with the permission of the buyer.
Rising Popularity of the ApeCoin that Clogged ETH Network
The ApeCoin has been in the news recently for different reasons, which are mostly positive. The virtual currency has recently gained popularity across different virtual assets’ enthusiasts.
Recently, a scheduled mint of the token clogged the Ethereum network because of an overwhelming demand of consumers and skyrocketing gas prices. Reports say that users of other apps connected to ETG couldn’t execute the most straightforward deal on Ethereum, during the mint of virtual land in Yuga Labs’ project.
Moreover, some intending virtual asset owners couldn’t obtain any assets during the mint after paying for gas costs which reportedly hit four digits during the mint. The coin’s creators, therefore, announced via their Twitter page that they would compensate such individuals.
Reacting to the event, the creators said they anticipated a rush for the Otherdeeds and deliberately set different measures to avoid overwhelming the ETH network and increasing gas costs. For example, Yuga Labs pegged the price of the tokens at 305 APE so as to raise the bar on how many person would participate in a mint.
Initially, the creators had planned to auction the non-fungible tokens. But it turned on its plan to peg a price for the coin due to rising gas costs. Additionally, the company added a restriction on how much virtual assets could stay in a digital wallet to facilitate an even distribution of the coins.
Additionally, it allowed only Know Your Customer (KYC) digital wallets owners who have finished the KYC registration to purchase from 55,000 Otherdeed. Nevertheless, there were many more persons who followed the regulations to clog the ETH network during the Otherdeeds mint.
Reports say that Yuga Labs’ tokens are one of the largest in the industry. Moreover, the Otherdeeds mint reportedly represented the most publicized mint in its category.
The creators of the coin afterward announced it would set up their own blockchain to accommodate for subsequent mints. Musk’s display of the token is another step that could further advanced the popularity of the token among digital assets’ enthusiasts globally.