ApeCoin (APE), the governing symbol of the popular NFT project Bored Ape Yacht Club (BAYC), was transferred to the owners of BAYC and Mutant Ape Yacht Club (MAYC) at 8:30 EDT March 17, just eight hours after it APE is now available for trading. In the open market, it has already climbed to the 110th best seller in CoinGecko’s ranking, with a total trading volume of $ 900 million on all monitored platforms.
As you might expect, there were some choppy price actions in the minutes after the airdrop, with headlines showing that the price of the APE has dropped 80% since launch. This raises the question of whether the typical BAYC and MAYC owner sold the APE for $ 40 instead of the $ 14 traded at the time of the press release.
Let’s take a look at the price of APE a few minutes after the announcement of the removal and tokens listed on Binance, FTX, Gate and SushiSwap to measure the extent of price variations during the first price discovery periods.
Find ApeCoin on the 1-minute chart. Source: FTX
The spot price chart above shows that on the 1-minute FTX chart, the APE price reached $ 40 in the second minute, but the permanent price chart below shows that it only rose to $ 15 at the highest point in the first minute.
ApeCoin perpetual 1 minute chart. Source: FTX
Binance shows a high distribution of $ 28 per minute on the 1-minute chart, while Gate shows an incredibly high of $ 214 per minute.
APE / USDT 1 minute chart. Source: Binance
APE / USDT 1 minute chart. Source: the portal
While the price of new tokens is often volatile during initial price discovery periods, and it is difficult to know whether transactions have actually taken place at these levels, the volumes in these minute lights can give a good indication of the true APE price. after airdrop.
Binance’s trading volume is the highest of the three platforms used in this article, and the reader should be aware that APE is also traded on other platforms. During the first five minutes, Binance had a total trading volume of $ 42 million, while FTX had a total trading volume of $ 18 million, and a spot trading volume of $ 6 million. Gate’s trading volume on the candlestick is only $ 1,665, the highest price is $ 214 and the total volume is $ 43,000 in just the first five minutes.
So we can clearly see the most reliable APE price a few minutes after receiving airdrop from Binance, which is around $ 28 per minute of airdrop. It is not uncommon to see a significant drop in the price of newly issued tokens in the first hours of trading, as has happened with many similar coins. The question is whether the average owner who is not technically savvy can sell the token within the first five minutes to avoid such a fall. The answer is almost certainly no.
First, the gas price for APE mining rose 10 times (or even more) compared to the normal price right after the airfall. Unless someone is willing to take the big risk of increasing the price of gas to get their APE ahead of everyone else (and remember that the price of APE probably does not exist anywhere at this time), it is very difficult to claim an APE for a minute. .
Second, when the APE is in the recipient’s Ethereum wallet, it must be transferred to central exchanges (CEX) such as Binance and FTX for sale. It also takes some time, depending on the network traffic at the moment. The fastest way is to use a decentralized exchange (DEX) by simply connecting to an Ethereum wallet and replacing the APE with another token.
An interesting observation, however, is that the liquidity of APE in DEX is not as high as it is in CEX. At the time of writing, the TVL on Uniswap is relatively low for the APE / USDC and APE / DAI pools, and SushiSwap has very low liquidity – the total locked value (TVL) in the APE / USDT pool is only $ 67,000.
APE liquidity pool as of March 17. Source: Uniswap.
APE / USDT liquidity pool as of March 17. Source: Sushi Swap
BAYC holders can claim approximately 10,000 APEs per NFT and MAYC holders may claim approximately 2,000 APEs per NFT. This means that only 80 BAYC holders will be able to switch the entire airdrop to $ 28, including $ 45 million from TVL APE / USDC to Uniswap.
BAYC owners can not exchange the full airdrop amount from SushiSwap for USDT since $ 67,000 cannot cover 10,000 APE exchanges on BAYC or 2000 APE on MAYC for $ 28.
Due to the lack of liquidity in DEX and the time it takes to convert APE to CEX as Binance, it is impossible for the average owner to withdraw money during the first 1-2 minutes at the top.