Despite ApeCoin’s Growing Popularity, the Crypto Signals Danger

The two largest Ethereum whales have bought a total of 600,000 ApeCoins recently

Over the past few weeks since its inception, ApeCoin has been getting tremendous attention from the cryptocurrency community. One aspect that has triggered its price and popularity is the interest from Ethereum whales. According to a report by WhaleStats, two of the largest Ethereum whales (10th and 20th largest coin holders on the ETH network) have bought a total of 600,000 ApeCoins worth US$8.4 million. Following this, more and more cryptocurrency whales are considering the Bored Ape Yacht Club coin as a good choice of investment.

ApeCoin's Brief History: ApeCoin was launched last month by the decentralized organization, ApeDAO, to support the web 3.0 gaming and commerce ecosystem. Created as an extension of the Bored Ape Yacht Club, the cryptocurrency has already been listed on many familiar exchanges including Coinbase Global, Binance, and FTX.

Initially, ApeCoin is designed to serve as an in-game token for Yuga Labs. Later on, the cryptocurrency will be used to fund various digital and physical projects.

Quickly after the launch, ApeCoin hit an all-time high of US$39.40, only to fall back to hover below US$10 to US$15. However, the sudden spike in its price has instigated a tremendous FOMO among cryptocurrency investors, especially, Ethereum whales.

The Red Flag: Although ApeCoin has managed to score big time in the early days of launch, experts say that its price has failed to establish a close above the 61.8 retracement level. They also warn cryptocurrency investors to not fall victim to the Bored Ape Yacht Club-backed token, seeing the sudden spike because it could entrap them in a bearish trend. Graphs also signal that ApeCoin could easily fall to US$7 or potentially US$4 in the coming days.

The Danger ApeCoin Possesses for the Ecosystem: Since the emerging VCs are used to reaping good profits at the early stage of Web 3.0 initiatives, they are losing interest in other gradual growth investments. ApeCoin is one of those early profit makers that is diversifying the opinions of VCs today.

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Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.