Robert Steinadler, 2 months ago
ApeCoin (APE) is probably one of the most famous tokens that is available on the market. It is the official token of the Bored Ape Yacht Club which is perhaps the most iconic NFT collection. Snoop Dogg, Eminem, Adidas, its own version of the metaverse, the list of features and partnerships goes on and on.
What is ApeCoin staking? How and when can investors profit from this opportunity?
Horizon Labs is developing the staking feature that is going live next week on December 5th. Unlike with cryptocurrencies, ApeCoin staking is not securing a blockchain with proof of stake, since APE is an ERC-20 token. This has also brought up criticism in the broader crypto community several month ago when staking was first mentioned by Yuga Labs, since it was not clear from the beginning why the project would need staking.
The crucial point is that not only ApeCoin holders can earn rewards, but also investors who hold a BAYC or MAYC NFT in their portfolio. Both collections are considered to be “blue chips” in the NFT scene and staking rewards make them more valuable and it might be more attractive to some investors to hold onto their NFT rather than selling it with the rewards in place.
According to Horizon Labs, there will be four different staking pools available. Staked assets and token allocations will vary by pool. The lowest entry barrier is to buy and stake APE token since there is not minimum investment required to participate with that option.
There is a caveat to the story of ApeCoin staking, since Yuga Labs is facing legal struggle in the US over the question whether ApeCoin and the BAYC are securities or not. A similar legal dispute is carried out between Ripple and the SEC over XRP in the US. While Ripple’s law suit will come to an end approximately in the first half of 2023, it is still unclear for how long Yuga Labs will be busy dealing with the SEC.
Since the SEC continues to probe ApeCoin, the BAYC and Yuga Labs, the company tried to prevent another conflict over the staking option by blocking access to the staking website for users based in the US along with several other countries like China and North Korea.
This has created outrage in the NFT community since many investors are situated in the US and fear that they could be locked out and miss potential profits on their investments. It remains to be seen if this situation will change. With the SEC continuing its investigation, US owners of APE or an NFT have no reason to hope that the doors will be open up.
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