Review of Yuga Labs’ Ecological Development and APE Token Market Performance

Yuga Labs' Ecological Development and APE Token Market Performance Review

Original Author: 0xscarlettw

1. Important Nodes

• MDvMM

• Six seasons, 3 weeks per season (Season 1 started on June 30th)

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  • PwC 2023 Cryptocurrency Hedge Fund Report Traditional Funds Polarized, Cryptocurrency Funds Remain Confident

• Currently, it looks beautifully made and delivered beyond expectations

• Staking/investor release

Monitoring website: https://token.unlocks.app/apecoin

• Ape Fest 11.3-11.5 HK

2. Price Reviewa. APE

https://www.coinglass.com/currencies/APE

2. NFT

Similar to MAYC/MAYC/BAKC

https://storage.googleapis.com/parsec-finance-exports/1689520238912.png

https://storage.googleapis.com/parsec-finance-exports/1689520323730.png

https://storage.googleapis.com/parsec-finance-exports/1689521215874.png

HV-MTL

https://storage.googleapis.com/parsec-finance-exports/1689521025056.png

3. Token Inflation

+57% after one year

4. Upside & Downside AnalysisUpside:

• Ape consumption

• Value capture from mech games (limited compared to inflation)

• Ape Fest (next stop HK, may drive NFT purchases from high-net-worth individuals in Hong Kong)

• Breaking through the circle

• Deep brand collaborations (e.g. previous ones with adidas/Gucci)

• Derivative games/movies and other works

• Release of Otherside and if it’s fun

• Currently, it’s the 2nd trip, and we still have to wait for an unknown period of time. Although Yuga’s delivery level did not disappoint

• Securities narrative reversal

• Last October, they were investigated by the SEC, but Ape is not included in the SEC’s lawsuit this time

Downside

• Price anchoring and narrative no longer exist

• Lack of market makers (previous buddies and Franklin) and high dependency on the community on Yuga, causing price fluctuations instead of the decentralized art collection logic like Punk

• Token inflation

• Ape still has significant inflation, and investors may further sell off (current price is already below the valuation of 20 billion vs 40 billion)

• Almost no token utility

• Payment usage – not many people use Ape for transactions, just talk

• Ecosystem development – in the past six months, apecoindao has done nothing except for daily threads through Forj and frequent gatherings with small builders. The organizational efficiency of the DAO is low and lacks incentives, which instead hinders Yuga’s level

• Staking – the only real usage at the moment. But the APR has dropped from over 300% at the beginning to 50%/140%, hedging may work, but naked staking should have suffered heavy losses

p.s. Since starting the in-depth research on Yuga last year, I have always been skeptical about inflation. However, due to the anticipation of staking driving up the price (in reality, because people have already absorbed all the chips after hyping for so long), I didn’t dare to short. If I had started shorting since last year, the return rate should have been pretty good.

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