APEcoin experienced a bullish rally on the price chart on Monday after making it clear that ApeCoin staking is active.
After the announcement, Ape coin suddenly increased by 52% in value.
It’s more crucial than ever for Web3 communities to do their research before joining a bandwagon because there is so much false information floating around the metaverse.
The same is true for ecosystem improvements like staking for apecoin. In order to dispel any potential misunderstandings and offer a general approach to staking ApeCoin, we’ve put together this concise but comprehensive guide. It contains everything a member of the Bored Ape Yacht Club (BAYC) should know.
What is ApeCoin.
First, some background information on ApeCoin ($APE). Although the moving elements of Yuga Labs, BAYC, and ApeCoin occasionally resemble each other, it’s crucial to distinguish between each organization. ApeCoin was designed to exist independently of the Yuga empire, but Yuga and its NFT offering are inextricably linked as creator and creation.
ApeCoin, rather than the Yuga ecosystem, is fundamentally the native token for the BAYC universe. The ApeCoinDAO, which was established specifically to develop and introduce ApeCoin, came up with the idea for the “token for culture, gaming, and commerce used to support a decentralized community forming at the forefront of Web3”.
These are only the fundamentals of ApeCoin; for more information, read the whole essay on the subject here on nft today. ApeCoin is nothing less than the lifeblood of the BAYC ecosystem as a cryptocurrency designed for the benefit of those who live in the BAYC universe and those who own NFT. Additionally, users who are a part of the BAYC ecosystem can now stake their $APE and lock it up in a smart contract to earn rewards over time.
What is Staking
Staking cryptocurrency has long been a crucial component of the blockchain ecosystem. It can be seen as a kind of decentralized, high-yield savings account in its most basic form. Bank customers can store their money in a normal savings account and earn interest on their balance over time. Banks sometimes use members’ locked-up money during this time to make loans to other people, ensuring that the bank always has enough liquidity for usage by members.
The same applies to staking, which requires users to lock up their token holdings so they can be utilized for liquidity and earn interest over time. Apart from the fact that one is crypto/blockchain-based and the other is not, one of the biggest differences between regular savings and token staking is that interest rates for staking are frequently substantially greater than those for bank accounts. Even though this is common knowledge to those who have engaged in decentralized finance (DeFi), general Web3 enthusiasts may be surprised to learn that even the lowest level of ApeCoin stakers could earn approximately 3.83 percent in a single year, while banks only typically offer 0.19 percent interest on savings accounts.
How to stake ApeCoin
So, how do you stake ApeCoin and how do your staked tokens start earning interest? Let’s start by clearing up the most crucial bit of information. Never rely on information from sources other than the official Yuga Labs, Bored Ape Yacht Club, or ApeCoin Twitter accounts. Likewise, only ever stake ApeCoin through ApeStake.io or through reputable centralized exchanges like Binance that have been authorized through official ApeCoin channels. Among these channels is Horizon Labs, a well-known blockchain infrastructure business that developed the ApeCoin staking mechanism.
Owners of $APE had until December 5 to pre-deposit money in order for rewards to start accruing on December 12. Now that that time has passed, rewards for staked $APE are live and accruing, and all owners of ApeCoin or BAYC NFT are welcome to participate in staking. Unfortunately, residents of the United States, Canada, North Korea, and other countries are not able to use ApeStake owing to regulatory issues.
Users of these geoblocked regions will need to stake through Binance, directly through the open-source smart contract, or by using a VPN until alternate staking channels have been developed with more centralized exchanges. VPN stands for “virtual private network,” for those who are unfamiliar. A VPN masks a user’s real IP address and builds a secure, encrypted tunnel to the internet in order to safeguard their online behavior and privacy. Users in the U.S. and Canada have generally found that using a VPN to participate in staking on ApeStake.io is the most popular workaround.
How to stake regardless of your location
However, staking is as simple as attaching a software wallet and confirming a transaction once a user gets access to ApeStake. Although the advantages of ApeCoin staking can be substantial, not everyone in the BAYC world will be able to enjoy them. Your rewards could differ significantly depending on how much $APE you possess and whether or not you own a Bored Ape NFT (or a Kennel Club Dog or a Mutant Ape).
Price Analysis
Looking at the 1-day chart, Apecoin has created new support about the 20-SMA Bollinger band as the price aims to hit the $5 mark before a retracement.
Apecoin has developed an increase in trading volume after the announcement of the launch, the reason being that most investors are starting to accumulate Apecoin to HODL for profit on the long run, as it has been outperforming other altcoins lately.
Rewards for staking apecoin
Users will have to choose which pool to distribute their holding when staking $APE. There are four main staking pools that may be accessed by holders of $APE tokens and BAYC (or similar) NFTs. 100 million $APE will be dispersed among staking pools as rewards within the first year of staking.
While immediately staking $APE is quite simple, people wishing to stake their BAYC or associated NFTs will first need to participate in a commitment process. A holder must own the NFT(s) at the time of staking, commit the NFT(s) using $APE, and choose their partnered pool if necessary in order to complete this process. It should be emphasized that in order to participate in the staking mechanism, you will need $APE, regardless of whether you stake an NFT or just raw ApeCoin.
It’s also crucial to remember that a BAYC NFT holder will forfeit all of their staked $APE if they sell their NFT while it’s committed. Before selling, customers are highly advised by ApeCoin to uncommit their NFTs; the company advises users to “think of a BAYC or MAYC [NFT] like a box that holds $APE.” The next owner of the box also receives all of its contents if you sell it.
Conclusion
The fact that knowledge is power should serve as the main lesson for individuals wishing to stake their tokens. Always double-check the information’s source as well as the websites and services you use. Visit the official ApeCoin website here as well as ApeStake.io to start learning more about ApeCoin staking, including how to keep your assets secure in the process.
