How to Buy API3 (API3)

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Contributor, Benzinga
January 5, 2022

Want to jump straight to the answer? You can buy API3 on Gemini today.

Application Programming Interface (API) is a software intermediary that lets computers or computer programs talk to each other. Since smart contracts usually have problems accessing trustworthy data, API3 aims to provide solutions. 

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What is API3?

API3 is a protocol that allows the transfer of dependable data and services between blockchain-based decentralized applications (DApps) in a well-documented format. This will let developers use real-world data through pre-built plug-and-play (PnP) connections without any intermediaries or external servers needed. Location or payment details are two examples of these kinds of data.

API3, the native utility token for the API3 platform, has been created for 3 governance use cases:

  1. Staking: The initiative encourages participation by offering staking incentives and inflationary benefits to individuals who stake their tokens in the insurance contract.
  2. Collateral: Supports insurance services that protect users from damages caused by dAPI failures.
  3. Governance: This allows you to have direct representation in the API3 DAO.

API3 is the API3 decentralized autonomous organization (DAO) governance token built on the Ethereum blockchain and used for project upgrade ballots. API3 DAO allows dAPI to operate with maximum transparency and no centralized authorities.

The three founders of API3 are:

  • Heikki Vanttinen: A former CEO at CLC Group that was developing real-world networked smart contract solutions for a more trustless, efficient, and secure future. He was also the chief marketing officer at Zippie, creating a blockchain-based mobile operating system (OS).
  • Burak Benligiray: He is API3’s co-founder and a former CLC Group colleague with Vanttinen. Burak joined API3 in September 2020 as the core technical team lead.
  • Saša Milić: She is a university professor that taught core curriculum courses to computer science students at the University of Toronto. Saša was also a software engineer at Facebook and joined API3 in May 2020 as the chief operating officer.

Brief History of API3

Also known as the Honeycomb predecessor, API3’s history begins in 2019 when the Honeycomb marketplace, a platform that allowed oracle node operators, DApp developers and API providers to do business, was created. When asked about the background of API3, Benligiray answered in an AMA:

“A large part of the founding members were previously working on the Honeycomb API Marketplace. Honeycomb was essentially an API-centric oracle marketplace, but the underlying oracle solution wasn’t built to enable first-party oracles, and was limiting us. Seeing that none of the solutions on the market satisfied our needs, we decided to build our own oracle solution to meet this need.”

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He went on to say that “It was affirming that we were not alone in this view. The security and the data source-transparency that 1st-party oracles provided is seen as an obvious solution to a lot of the problems that existing projects suffer from. For example, Sasa and many other founding members reached similar conclusions independently, and got involved with the project simply because it complemented their personal vision.”

API3 was launched in December 2020 on Messa decentralized exchange (DEX). The initial coin offering (ICO) event started on Nov. 30 and ended on December 14, 2020, with 20 million API3 tokens — only 20% of the whole supply — for sale. The token’s initial price was $0.30 and hit an all-time high of $10.31 on April 15, 2021. API3 is traded at $4.202 at the time of writing, according to the data provided by CoinMarketCap.

CoinFund, Digital Currency Group, Hashed, Pantera Capital, Placeholder VC and Accomplice are some of the big names who have invested in the API3 project.

How to Buy API3 Token

API3 is already listed on a few popular crypto exchanges such as Gemini and Coinbase Exchange. First, you need to figure out which exchange will work best for you, since some exchanges like OKEx, Huobi and Poloniex are not available for United States citizens.

  1. Open an online account.

    After deciding which exchange to use, you should create an account on the platform, usually by using your email, but this varies from one exchange to another. Once you’ve entered your email, you’ll need to verify your identity through a valid government-issued ID.

  2. Buy a wallet (optional).

    After your account is created on an altcoin exchange, you will need to get a cryptocurrency wallet if you go for a DEX like Uniswap. A centralized exchange (CEX), like Coinbase, often comes with a built-in wallet and saves you the trouble of purchasing a crypto wallet.

    You need to make a deposit once verified using a method that works well for you: credit/debit card, PayPal, wire transfer, etc. After deposition, you can exchange your money with API3 or first with another stablecoin, like Tether (USDT), then convert USDT with API3.

  3. Make your purchase.

    After creating a hot wallet or purchasing a cold wallet that supports the API3 token, you can easily make your purchase using a credit/debit card or by making a direct bank transfer. This mostly depends on the type of wallet and your region.

    API3 has many ways to go and a bright future lies ahead with all these projects along the way, but how could it perform in the long term? Could the API3 protocol change the game for typical APIs? 

Best Crypto Wallets For API3

Best Hardware Wallet: Trezor

There are 2 models of Trezor wallet, Trezor One and Trezor Model T, both of which are known for their top-notch security and support for a wide range of altcoins (more than 1,600) but criticized for their high prices. Trezor One was launched in 2014 and is still one of the most popular wallets. 

With some improvements, Trezor Model T was launched in 2018, with a much higher price tag. Trezor One costs $59 that could be a better option for anyone with a tight budget, as the Model T that costs $169, more than twice the price of model One.

Best Software Wallet: Coinbase

Coinbase is a well-known name in the crypto industry and was launched in 2012 to offer crypto enthusiasts a user-friendly interface for trading crypto. Coinbase is a web-based centralized crypto exchange that offers a hot wallet, a crypto wallet that allows users to store, send and receive tokens unlike a cold wallet that only stores crypto. 

Coinbase wallet is popular for its security and background in the crypto industry but the fees might not be appreciated by many. Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, XRP, Stellar Lumens, Dogecoin, and all ERC20 tokens are currently available for trading on Coinbase exchange and wallet.

Trade, Sell or Convert your API3

You trade, sell or convert the API3 token by connecting your wallet to a supported exchange or using an exchange that has a dedicated wallet like Coinbase. The trading services and fees differ from one platform to another.

Finding a trading pair is very important and something like API3/USDT for buying or USDT/API3 for selling would work well. Converting, on the other hand, is much cheaper and easier, you just need to select the tokens you want to exchange instantaneously.

Current Crypto Prices

Here is a list of the hottest cryptocurrencies in the market with the most recent prices. The cryptocurrency markets are open 24 hours a day, 7 days a week, so it’s a good idea to use a crypto portfolio tracker to monitor price movements easily.

Is API3 a Good Investment?

Although the API3 project is at its early stages, many consider it the Chainlink killer. However, their approaches are different and Chainlink isn’t transitioning to first-party oracles. We have provided you with most of the main ideas behind API3 but there is still a lot of room for improvement. Before making an investment decision, take all the risks into account.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
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