The much-hyped ApeCoin token and decentralized autonomous organization (DAO) that emerged from the Bored Ape Yacht Club NFT collection now appear to be failed experiments in building a sustainable community and cryptocurrency.
The value of ApeCoin has cratered, dropping nearly 30% in the last month alone, while the DAO has met resistance in trying to push through proposals and expand the ecosystem. As interest and investment dry up, grave doubts have formed around the viability of ApeCoin and its ability to deliver on lofty promises of creating a vibrant new corner of web3.
Once heralded as the next big thing in crypto, ApeCoin and its associated DAO now face a crisis of confidence and purpose. The precipitous decline in the token's value mirrors the growing disillusionment with the project's trajectory and indicates the ApeCoin experiment may be running out of runway.
As avid supporters of the Bored Ape Yacht Club ecosystem, it pains us to say that the ApeCoin DAO experiment appears to have failed despite our best hopes and coverage.
While we've given the project extensive opportunity to share perspectives and progress, ApeCoin now faces a crisis of confidence and purpose. Though success seemed attainable given the vibrant community, two fatal flaws have led to its current struggles: endless power struggles fueling gridlock and unchecked ego diminishing collective priorities.
Moreover, money grabbers inflicting damage through self-serving proposals exacerbated these structural issues. Despite our repeated attempts, authors of wasteful proposals have evaded questions about how they spent granted funds. Available evidence indicates meager or zero tangible results from exorbitant budgets.
We take no pleasure in chronicling ApeCoin's stumbles, having eagerly tracked its launch. Our past optimism stemmed from faith in the community's spirit and drive for decentralized progress.
While we remain hopeful ApeCoin can rediscover its promise, brutal honesty compels us to detail the missteps and mistakes which brought things to this crossroads. A renewed path forward remains possible if the community summons the wisdom and will to find it.
ApeCoin DAO Proposals Shows Lack of Consensus
Examination of recent proposals brought before the ApeCoin DAO reveals a governance body unable to find agreement and unity around plans to expand the ecosystem. Most notably, the proposal to produce a documentary titled "Bored as F*ck" has met strident opposition despite being approved by a slim majority.
The documentary aims to onboard more creators into the community and pay them in ApeCoin, but detractors have raised concerns about costs and other issues. With only 53% voting yes, it exemplifies the lack of consensus plaguing the DAO and hindering progress.
Other proposals, like forming Delegate Communities as quasi-subDAOs and creating a price tracking Discord bot, have also surfaced fundamental divisions rather than excitement. Across the board, the ApeCoin DAO has struggled to coalesce around shared goals and move forward decisively. The stalled momentum echoes larger issues paralyzing the project.
DAO Money Grabbers Played Role in ApeCoin's Downfall
While flaws in vision and execution shoulder much of the blame, it appears that money grabbers within the ApeCoin DAO also contributed to its struggles. These actors sought to deceptively siphon funds from the treasury without providing commensurate value.
According to crypto expert Daniel Lee who has monitored the ApeCoin DAO closely,
"money grabber proposals definitely played a role in draining funds and creating mistrust. Their vague, unrealistic proposals created needless expenses that didn't align with the community's goals."
Other experts share this perspective that money grabbers exacerbated existing issues through self-serving actions under the guise of community-building. Their presence infected the DAO and added further obstacles to gaining alignment on productive ideas benefitting all stakeholders.
By exploiting trust and exploiting the system, money grabbers compromised the integrity of the decentralized governance process. Their negative impact provides another lesson for Web3 projects on the importance of safeguards and oversight against such harmful behavior.
Plummeting Token Price Signals Investor Exodus
Mirroring the dysfunction of the DAO, the price of ApeCoin has absolutely plunged over the past month, dropping nearly 30% and over 99% from its all-time high. This steep decline indicates investors are rushing for the exits, spurred by growing doubts about ApeCoin's viability.
On-chain data reveals the depth of the despair, with 99.95% of wallets holding ApeCoin currently at a loss. Only a miniscule fraction retain profits. Other metrics like the MVRV ratio being -71.24% underscore the pervasiveness of investor losses right now.
Adding insult to injury, transactions resulting in losses greatly outnumber those generating profits. For every profitable transaction, over 70 transactions crystallize losses, per 30-day moving averages.
Essentially no new demand exists for ApeCoin at current prices based on the cratering number of new addresses buying the token. Since August 17th, new address creation is down a whopping 98%, all but drying up as prices descend.
The plunging token price and on-chain activity paint a grim picture of lost confidence and interest in ApeCoin as investors abandon what looks like a sinking ship.
Experts Divided Over ApeCoin's Future Prospects
Perhaps unsurprisingly given the turmoil, experts hold conflicting views on whether ApeCoin can recover and right the ship. Some issue full-throated warnings about its prospects.
"ApeCoin is clearly in crisis mode," said crypto analyst Mary Rivers. "Between the freefalling token price, paralysis in the DAO, and hemorrhaging investors, it's hard to deny this project is in serious trouble. I don't see a turnaround on the horizon."
Others urge patience and argue fortunes could change. "It's too early to completely write off ApeCoin," contended Web3 venture capitalist Jonathan Lee. "The crypto market moves in cycles, and a new bull run could revive interest. I wouldn't underestimate the power of the ApeCoin community long-term."
Fundamental Flaws Holding ApeCoin Back
While anything is possible in crypto, the sheer depth of problems facing ApeCoin cannot be ignored or dismissed as temporary. Beyond market conditions, foundational flaws have hobbled the token and DAO from the start.
The lack of consensus stems from ApeCoin's muddled vision and mission. It lacks purpose and direction, leading to paralysis and infighting. The decentralized ethos also appears more on paper than reality, with Bored Ape Yacht Club owners wielding outsized influence.
Additionally, hoping hype alone could sustain ApeCoin was always a shaky bet. Without deeper utility and adoption, bear markets inevitably expose such weakness.
In my judgment, these fundamental issues raise existential questions about ApeCoin's viability absent major changes. The problems run deeper than prices and do not inspire confidence.
How Can ApeCoin Recover and Right the Ship?
The critical question facing ApeCoin and its community now is: what comes next? How can ApeCoin restart momentum and deliver on its promise to become a vibrant corner of web3?
The most essential step is resolving fundamental conflicts over vision and clearly defining a purpose and utility for ApeCoin. Renewed consensus must emerge on what the token and DAO aim to achieve and what needs prioritization. Through hard conversations and compromises, alignment is possible.
Additionally, the community must double down on meaningful adoption and utilization. Rather than hoping hype drives value, ApeCoin should incentivize real use cases. The recent partnership with Reddit and push for payments is a positive sign needing expansion. Usage remains the surest path to sustainability.
What Does the ApeCoin Debacle Mean for Web3?
Stepping back, the stumbles of ApeCoin echo the growing pains of web3 more broadly. As excitement fades post-bull market, projects need to address flawed assumptions and bridge the gap between vision and reality.
ApeCoin offers a cautionary tale of the hard work required to build functioning decentralized communities and tokens users truly value. Hype alone cannot substitute for strong fundamentals and real-world utility.
The challenges facing ApeCoin also showcase how decentralized governance introduces complexity absent in traditional corporate structures. Reaching consensus and navigating conflict prove difficult, but are a prerequisite for sustainability.
Overall, the struggles contain important lessons for web3 projects seeking to avoid a similar fate. Turning ambition into reality remains difficult but not impossible with the right vision, community and execution.