•PeckShield, a well-known blockchain security firm, reported that there is a serious threat when staking ApeCoin [APE] and Bored Ape Yacht Club [BAYC] tokens.
•Santiment’s data showed that the volume of APE has risen lately and Dune Analytics revealed that 46.14 million APE have been deposited in BAYC’s pool.
•Holders of both tokens are encouraged to watch out for potential exploiters to avoid losing their assets.
Risk Warning for ApeCoin and BAYC Stakers
PeckShield Alert, the renowned blockchain security firm, recently released a tweet warning holders of ApeCoin [APE] and Bored Ape Yacht Club [BAYC] tokens about an imminent risk associated with staking these assets. As an example of this danger, PeckShield mentioned that one user lost his BAYC token and $60,000 worth of APE to an exploiter after participating in NFT Liquidity Pools (LP). The alert urged holders to be cautious when providing their digital assets into smart contracts for trading purposes.
Growing Popularity of Staking APE Tokens
Staking ApeCoin became popular among the crypto community in December 2022 due to its lucrative rewards for those holding NFTs linked with APE. Notably, BAYC holders receive the largest share of these rewards and there is a specifically dedicated pool for both tokens. However, with the newfound risk linked with staking activity on LP pools, participants must be extra careful when depositing up to 10,094 APE into these pools.
High Volume Entering The APE Ecosystem
Data from Santiment showed that a lot of volume had entered the ApeCoin ecosystem as at 8 April 2021 with its peak reaching 104.29 million before its subsequent dropoff. This considerable rise in volume implied increased transactions on the network which consequently aligned with spikes in other related metrics such as circulation rate; Dune Analytics recorded 62.45 millionAPEs used over seven days prior to press time.
Mitigating Risks Linked With Staking
To protect against potential losses from exploiters or arbitrageurs while participating in NFT pools activities, PeckShield Alert advised users not to sell their NFTs if they had already staked APEs therein; this would ensure that they don’t get tricked into giving away their valuable digital assets without gaining any returns whatsoever. Additionally, investors were encouraged to properly research any trading activity before committing funds so as not to fall victim to any malicious actors or schemes online..
Conclusion
Overall, although staking provides attractive rewards and benefits for holders of certain tokens like APE and BAYC , it is important that investors take preventive measures such as being vigilant while engaging in such activities so as not lose their hard-earned crypto resources through exploitation or deceitful practices online
