ApeCoin (APE) continued its rebound move on Thursday as its backing firm raised hundreds of millions of dollars in a funding round led by Andreessen Horowitz.
The price of APE rose 7.5% intraday to reach around USD 14.50 per unit. Notably, the token’s rally came as part of a pullback that began earlier this week, when it was changing hands for as low as $9.50.
This saw APE gains for the week jump 50%, making it one of the best performing digital assets since March 21.
Venture capital push
To recap, the ApeCoin digital currency hit the market on March 17, via an “airdrop” backed by Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC), a collection of non-fungible tokens (NFTs) popular with celebrities, athletes and venture capitalists for their supposed status symbol.
Yuga Labs released 150 million APEs – out of the total 1 billion created – among NFT owners in the Bored Ape collection, each earning 10,904 tokens, worth more than $158,000 by Thursday, “for free.” “.
In the meantime, owners of the rarest BAYC NFTs, the “Mutant Apes”, received 2,042 APE tokens, which cost around $30,000 at today’s price.
The company envisions APE as a governance and utility token to allow its holders to oversee and manage the so-called ApeCoin DAO, a decentralized autonomous organization. As a result, owning an APE gives users the right to vote on proposed decisions within the BAYC ecosystem.
“It will serve as a decentralized protocol layer for community-led initiatives driving culture in the metaverse,” says an excerpt from the official ApeCoin website.
The ApeCcoin community has issued 5 proposals, including the DAO structure; the voting process; the allocation of the ecological budget; the rules for staking and the allocation of staking pools. More than half of the budget goes to the game development. https://t.co/s1vq8v623g
— Wu Blockchain (@WuBlockchain) March 24, 2022
Interestingly, Yuga Labs gave the entities, including Andreessen Horowitz and Animoca Brands, that helped it launch APEs around 14% of its total offering, worth about $2 billion at current prices. On Tuesday, the company raised $450 million from the same venture capitalists to be valued at $4 billion.
The FTX exchange also contributed to the funding round, which, as Yuga claimed, would be used to expand its development team and to oversee its upcoming collaborations, including a metaverse project called Other side.
Yuga could also use the capital to grow Bored and Mutant Apes into bigger brands, with some of them debuting in luxury goods and a play-to-earn game that could include APE tokens.
Looks like every single exchange is listed $APE.
I’m here for this.
— David Gokhshtein (@davidgokhshtein) March 23, 2022
The future of the APE token
ApeCoin has a week to live, so technically it does not have enough historical data to anticipate future price movements.
However, when switching to shorter time frame charts, the APE token shows an uptrend within a parallel ascending channel, with traders buying when the price reaches the lower trend line and selling when it reaches the upper trend line.
As a result, the current APE bounce move could see it extend its bullish momentum towards the upper trend line of the channel near $15, coinciding with another resistance level on March 18-19.
Meanwhile, the APE token has also tried to reclaim $14.25 as interim support. Failure to do so could risk an early pullback move towards the lower trend line of the channel, which also coincides with its 20 hourly exponential moving average (20 hour EMA – green wave on the chart) near $13.50.
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