ApeCoin Price Prediction and How Arbitrage Bots Captured Making Over $2 Million in APE

ApeCoin price prediction is based on the recent launch and upcoming events for the cryptocurrency. The first trading day revealed how flash bots were involved in the transactions. One bot made over $2 million, the transaction was captured and discussed.

ApeCoin was created on the back of the Ethereum blockchain, an ERC-20 coin.

Additionally, the creators of ApeCoin own CryptoPunks, Bored Ape Yacht Club Bores Apes (BAYC), Meebits (recently acquired by Yuga Labs) Mutant Ape Yacht Club (MAYC) and the Bored Ape Kennel Club.

Yuga Labs (the owner of the above projects) non-fungible tokens (NFTs) are owned by many known figures from the financial and entertainment industry.

source: OpenSea

The release of ApeCoin has had a positive impact on BAYC NFTs, attaining a floor price of approximately 100 ETH. In the past 14 days Mutant Apes average price has climbed higher from 16 ethers (average price) to 23.7 ethers (average) according to OpenSea.

APE trading volumes exceeded $4 billion on the first trading day. Large crypto exchanges have added ApeCoin upon its release. Some of the top cryptocurrency exchanges that listed APE are Binance, KuCoin, Kraken, Gemini, BKEX and eToro.

According to CoinMarketCap (CMC), APE/USDT has the biggest trading volumes. Mandala Exchange has the highest trading volume in APE/USDT at the time of writing, $655,402,658.

Perpetual contracts for ApeCoin (APE/USD) are only available at FTX. More exchanges may add APE perpetual cryptocurrency futures.

Arbitrage Bots Profited from ApeCoin

When ApeCoin was launched, there were liquidity issues. As opposed to centralized exchanges (CEX) like Binance, decentralized exchanges (DEX) were hammered by flash bots.

I would like to focus on SushiSwap to demonstrate what occurred last week.

source: etherscan

When ApeCoin was trading at around $13 during the day of the launch, 8,769 APE (approx.) were sold for 140.50 ETH (just under $400,000). SushiSwap provided a market price of $44.98 per one APE instead of $13.

Instead of selling 8,769 APE for $113,997 (based on $13 per one APE), the coins were sold for $394,430 (based on $44.98 per one APE). The profit that was made over the transaction in SushiSwap was $280,443 excluding gas fees.

At the same time, approximately 8,592 APE were purchased for $45.69, which is 3.5 x the market price of the cryptocurrency at the time.

It did not end there. Numerous transactions capitalized over SushiSwap and UniSwap price differences. The biggest profit in ApeCoin I was able to capture earned the investor behind the flashbot over $2 million.

Exclusive: Flash Bot Made over $2 Million in ApeCoin

By capitalizing the price differences in SushiSwap and UniSwap, the crypto bot earned over $2 million. As hundreds of transactions took place in a very short period of time that it was challenging to capture.

Exclusive to Financemagnates, below is the transaction of the flash bot that earned over $2 million.

source: etherscan

The bot swapped 7.73 ETH for 2,806 APE (approx.) on UniSwap. In fiat currency it is approximately $31,000).

Then the 2,806 APE that were recently acquired were swapped back to Ethereum but instead of 7.33 ETH the ApeCoins were sold for 960 ETH (approx.) In real money, this is approximately $2,772,000.

$31,000 were turned into $2,722,000 within seconds.

The extreme price differentials across DEX was only seen within the first several hours of the launch.

There were several price differences in the past 48 hours, but their frequency was extremely low.

ApeCoin 'the Other Side' Metaverse?

Yuga Lags tweeted a short video on their official Twitter account. The video hints that 'the other side' is coming in April 2022.

Based on the video it appears a gaming metaverse platform may be launched in April. It is unclear what the new ApeCoin game will be offering.

Nevertheless, all NFT projects owned by Yuga Labs may be integrated into the metaverse platform.

If investors will be able to buy land in Yuga Labs' metaverse, similar to Sandbox and Decenteraland, ApeCoin may benefit from an additional boost in the market.

Live events may take place on the platform. There is a high possibility live music concerts may take place on the new platform due to Guy Oseary's involvement. Snoop Dog released 4 sound tracks, theming the bored apes. All tracks will be sold out shortly.

source: snoop.ape-drops.xyz

Live music concerts including exclusive shows for NFT holders may sustain the network. I am confident their plan for the gaming platform has been well-thought.

If the platform will gain popularity it may have a significant impact on the metaverse crypto industry. Celebrities that own the NFTs such as Snoop Dog, Justin Bieber , Neymar, DJ Marshmallo, DJ Kahled may promote the platform upon its release.

Aside from ApeCoin which may appreciate due to the above, other metaverse crypto tokens may benefit as well.

ApeCoin Staking

ApeCoin staking may be available within several months. The estimated cost of developing the smart contract Smart Contract A smart contract is a piece of software that automatically executes a pre-determined set of actions when a certain set of criteria or met. One of the key tenets of smart contracts is their ability to perform credible transactions without third parties and are self-executing, with their conditions written into the lines of code that form themAdditionally, these transactions are both trackable and irreversible. For example, a smart contract could be used to give royalty payouts to a musical artist A smart contract is a piece of software that automatically executes a pre-determined set of actions when a certain set of criteria or met. One of the key tenets of smart contracts is their ability to perform credible transactions without third parties and are self-executing, with their conditions written into the lines of code that form themAdditionally, these transactions are both trackable and irreversible. For example, a smart contract could be used to give royalty payouts to a musical artist Read this Term that provides the staking is between $300,000 and $500,000.

The Bored Apes, Mutant Apes along with Yuga Lab's NFTs may be staked as well as ApeCoins. As opposed to traditional play-to-earn games, the NFTs will not be locked.

According to ApeCoin's official website the staked NFTs can be still be traded during the stake. Similar to other structures, the earned ApeCoin during the stake can be withdrawn at any time.

source: apecoin.com

Once the staking Staking Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents a bid to secure a volume of crypto to receive rewards. In most case however, this process relies on users participating in blockchain-related activities via a personal crypto wallet.The concept of staking is also closely tied to the Proof-of-Stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents a bid to secure a volume of crypto to receive rewards. In most case however, this process relies on users participating in blockchain-related activities via a personal crypto wallet.The concept of staking is also closely tied to the Proof-of-Stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve Read this Term begins, 17.5% of available ApeCoin will be distributed over 3 years. In the first year, 100 million coins will be distributed, 50 million tokens in the second year and 250,000 APE tokens in the third year.

Four separate pools will be available:

ApeCoin Staking Pool,
BAYC Staking Pool,
MAYC Staking Pool
and BAKC Staking Pool.

The launch of staking ApeCoin tokens may inject further volatility in the cryptocurrency.

ApeCoin Price Prediction

Technical analysis at this stage is almost useless for a medium-term outlook as more data is required. Due to BAYC's reputation, Illuvuim and Axie Infinity may be used for guidance.

These successful crypto games are very popular. If BAYC takes a similar path with live shows the price may surge in accordance. As the NFT collection is highly-priced, 'regular' users may be unable to afford the NFTs.

Nevertheless, all new projects from BAYC are likely to use APE. Other gaming platforms are likely to adopt ApeCoin, which may receive a 'bitcoin-status' in the gaming world.

To bypass being labelled as 'securities' by the SEC, ApeCoin DOA is separated from Yuga Labs. As the rewards stem from ApeCoin DAO and not directly from Yuga Labs, a separate company is providing the coins.

As the NFT market is yet to be regulated, the structure may be appropriate. According to the Financial Times, Andreessen Horovitz may have been consulted regarding the ApeCoin DOA structure (which it declined to confirm).

It has been speculated that BAYC is looking to raise between $4 and $5 billion in a new funding round.

With that in mind, $150 may be a fair, initial target for APE.