ApeCoin holders oppose proposal to spend $12.1 million worth of APE for NFT series
- ApeCoin holders are voting on the AIP-304 proposal to spend 11 million APE tokens in the development of an NFT assets series.
- The community, 66% of voters, are currently against the proposal.
- APE price is currently in a downward trend and wiped out nearly 20% of its price over the past week.
The ApeCoin community of holders are voting on a proposal to acquire Non-Fungible Token art – Bored Ape Yacht Club (BAYC), Mutants, TBD Doggies and Punks – for 11 million APE tokens. Currently, the opposing vote is in the lead, and the process ends on September 21.
Also read: MATIC price climbs as Polygon outlines proposals for 2.0 upgrade
ApeCoin community against purchase of NFT assets
The ApeCoin community spent nearly two months discussing the AIP-304 proposal initiated by Huang Licheng, also known as “machibigbrother.eth”. The idea is to spend 11 million APE tokens, worth approximately $12.1 million, to create a digital art movement collection.
Voting on AIP-304 proposal
The NFT collection will be composed of Yuga series NFT assets, 1,000 BAYC, 2,000 Mutants, TBD Doggies and Punks, as well as other artwork. These pieces of digital art will be used as rewards for users who lock their APE tokens for five years for the governance of the protocol.
AIP-304 currently faces opposition in the community from 66.17% of holders. The voting process ends on September 21. Licheng, who proposed AIP-304, holds a total of 4.24 million APE tokens worth approximately $4.67 million.
APE price is in a downtrend
ApeCoin price trades at $1.105 at the time of writing, and the NFT token is currently in a downward trend that started on April 14. APE price yielded an 18.9% loss for holders over the past week. It remains to be seen how APE price is influenced by proposal AIP-304.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Like this article? Help us with some feedback by answering this survey:
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
