Dirt: Bored Ape Universe

NFTs are not securities, and thus perfectly legal as commodities. They are more like artwork or souvenirs, whose prices also fluctuate. Just because a signed photograph of Kanye West gets more valuable if West is more famous doesn’t mean it qualifies as a stock. But $APE is much closer to a security, because it’s not an artwork; it’s money. It’s al... See more

But — laughing out loud — Apecoin crucially has nothing to do with these transactions. It is just a fictional currency made by the same company. It’s likely that the value of $APE will go up in times when there is more general demand for or awareness of BAYC. The coin will be the “primary token for the BAYC ecosystem, as well as future Yuga product... See more

It’s a harmony of vibes: BAYC NFTs are literally valuable, so its new derivative currency feels like it should also be valuable, even though they are not explicitly financially linked. It’s like the way a simple Gucci T-shirt is expensive because the rest of Gucci’s products are expensive. The brand imparts an aura, no matter what the specific item... See more

You have just become a shareholder in an imaginary entity, except you have no protections enforced by the US government. You can always sell your coins for more $, though — as long as the price doesn’t go down or it gets regulated out of existence. Here are all the things you can do with your $APE, listed on its website. Crucially, there is nothing... See more

But what gives $APE any value to begin with? It’s not directly, legally tied to the profits of Yuga Labs, the parent company of BAYC — that would make it a totally illegal security. In a literal sense, owning the token only allows you to vote in matters of concern to the decentralized autonomous organization (DAO) that formed around the currency. T... See more

Apecoin’s launch was more or less like a start-up IPOing: preexisting holders of Bored Ape Yacht Club NFTs could claim a certain amount of the currency for themselves, for free just because they have an ape. That currency immediately had value.