ApeCoin Dives 26% Despite New Utility as Token Unlock Looms

• ApeCoin DAO starts an improvement proposal for a new racing game.
• The 3D pixel game aims to employ APE as an in-game cryptocurrency.
• On-chain signals expose a complete bearish takeover on ApeCoin.

ApeCoin’s decentralized autonomous organization (DAO) found a new utility case in metaverse gaming, but APE continues to plunge amid Monday’s altcoin meltdown . In the latest Ape Improvement Proposal (AIP), the devs announced a new bumper cart game based on the characters of Yuga Labs-owned NFT characters, including the blue-chip Meebits and the Bored Ape Yacht Club (BAYC).

The Mario Kart-style title aims to employ APE as the game’s currency. The proposal, titled “PKing – 3D MOBA Mobile Game: YugaNFT+ApeCoin As Game Currency,” touches upon the gameplay: “Players can transform Meebits into PKing racers, DIY their own cars, and compete with global players online in a thrilling racing collision game.”

The game, set in a post-apocalyptic environment where AI, humans, and aliens peacefully coexist, requires 30,000 APE for funding, according to the developer team’s message. Once launched, PKing will run on APE for cart upgrades, character power-ups, and other in-play monetary transactions.

22.5M APE to Be Let Out of Their Cage

Despite finding new utility cases in metaverse gaming, APE took a beating from the hostile crypto bears with a 26% decline in the last 30 days. According to the cryptocurrency unlocking tracker Token Unlocks, ApeCoin is quickly approaching another 15.6M in token unlocks.

On January 17, the scheduled monthly practice is slated to pour 4.23% of ApeCoin’s total supply into circulation, applying additional selling pressure for the already struggling altcoin. At press time, ApeCoin trades at $1.35, with a 4.20% drop in the last 24 hours.

While still 34.18% up from its all-time low set at $1.01 on October 10, 2023, APE’s chances to bounce back above its weekly high of $1.75 are slimming due to three bearish on-chain signals: net network growth, concentration, and holders in the money. In contrast, the only bullish outlook is found in the Relative Strength Index (RSI), at 35 on the seven-day perspective.

On the Flipside

• Some prominent ApeCoin community members allege that the BAYC community is dissatisfied with ApeCoin DAO’s conduct, citing “extremely bloated salaries and admin costs” and blaming the developers for the extreme APE price plunge.

Why This Matters

Giving utility to memecoins in the Web3 space enables a sovereign financial system for gamers.

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