ApeCoin (APE) Crypto Prices Hit Huge Volatility Amid Flash Lending Exploit

New ApeCoin (APE-USD) the crypto plunged as much as 80% after its successful market debut.

Source: shutterstock.com/bangipung

ApeCoin is trading in a volatile pattern, dropping from a high of $39.40 to a low of $6.48 before stabilizing. Currently, CoinMarketCap is showing APE-USD trading at $14.98.

Why is this important? ApeCoin is a token related to the popular Bored Ape Yacht Club (BAYC) Non-Fungible Token (NFT) collection.

What Happened With APE Crypto Prices

It seems there are a few reasons for the volatility. After a high-profile debut of ApeCoin yesterday, APE crypto price fell rapidly in the early hours of trading. Holders of certain Bored Ape NFTs received the tokens in an airdrop. Other investors have the opportunity to buy APE-USD through a variety of major exchanges.

It appears that some early investors sold off their tokens quickly, contributing to the volatility.

The volatility also seems to be the result of a hacker exploiting the ApeCoin airdrop and sell over $800,000 of the digital token. The hacker apparently used a process known as “flash loan” to acquire 60,000 ApeCoin tokens, which were quickly sold for a profit of around $820,000. This process has disrupted the beginnings in the market.

why is it important

The beginnings of ApeCoin are a try somehow for the cryptocurrency market as a whole. Analysts and investors are watching to gauge demand for new crypto offerings and to see if the market can support a growing number of new entrants. The total market capitalization of the ApeCoin token stands at around $4.1 billion after its debut, making it the 33rd largest cryptocurrency.

What happens afterwards? After listing the token on major exchanges and performing an airdrop, the rest of the supply will be split. The team says 47% will go to Ape DAO treasure, 16% to Yuga Laboratories8% to BAYC founders and 14% will go to other launch contributors.

What’s next for ApeCoin

All eyes remain on ApeCoin to see if the price of the digital token can stabilize and rise. The volatility that occurred after its debut took some observers by surprise.

Longer term, ApeCoin will need to find a dedicated and committed investor base to support its price. For now, investors should keep an eye on ApeCoin from afar.

As of the date of publication, Joel Baglole had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a reporter for the Wall Street Journal and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Comments are closed.