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Apecoin Staking Function Brings Damage To Users

The Apecoin (APE) staking function is causing trouble for some users to pair their tokens with NFT.

Apecoin staking functions work by users can link their tokens with their Bored Ape or Mutant Ape NFTs or stake them directly. Only the tokens are locked in the smart contract when they pair them.

The NFTs can still be bought and sold on OpenSea and other online stores. However, because the paired NFT serves as the access key in this scenario, the holder forfeits the staked Apecoin to the NFT’s buyer.

This APE staking function has been targeted by intelligent arbitrageurs. Purchasing a Bored or Mutant Ape whose owner has staked APE is the first step in the process.

To raise the money required to buy the NFT, these traders typically take out a quick loan. The staked tokens are given to the next bidder after the NFT is sold. The following step is exchanging NFT and Apecoin for Ethereum. The trader’s earnings from these sales are sufficient to pay back the loan and still leave them with a profit.

Due to their failure to delist their paired NFTs before staking their tokens, owners of Bored Apes and Mutant Apes are losing their staked Apecoin.

Security company PeckShield reports that since Apecoin staking went live on December 5, several owners of Bored Apes and Mutant Apes have already experienced problems because of the way the staking feature functions.

Targeting owners of Bored Ape have already brought in profits of $8,000 to $10,000 for two traders. After selling their NFTs in both instances, the victims lost their staked Apecoin.

In one incident reported by PeckShield, the victim lost 6,400 APE to the trader when the paired NFT was sold. And until now, this method is still working.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.