Staking ApeCoin [APE] on NFT pools could lead to BAYC loss, as per…

• BAYC and ApeCoin holders risk losing their assets while staking.
• APE’s circulation has been increasing while BAYC’s volume has not been impressive.

In a tweet to the ApeCoin [APE] community, PeckShield Alert mentioned that there was a serious threat linked with staking the token. As a way of explaining the danger and encouraging holders of APE and Bored Ape Yacht Club [BAYC] to mitigate the risks, the tweet referenced an example.

Read ApeCoin’s [APE] Price Prediction 2023-2024

The well-known blockchain security firm specifically pointed out participating in the activity on NFT Liquidity Pools (LP). These NFT pools allow users to deposit their digital assets into a smart contract, thereby permitting the trading of these assets based on demand and supply.

Choose the watchful way

In this referenced case, PeckShield reported that a user had lost his BAYC and $60,000 worth of APE to a potential exploiter.

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#PeckShieldAlert If you stake $APE in the NFT pools & sell your #NFT you will lose the staked $APE!

Exploiter/Arbitrageur 0x06800a just bought following #BoredApeYachtClub #7810 and got the staked 14.3k $APE (~$60K) https://t.co/8K1fVMlWQp pic.twitter.com/nA9tMDEi1A

— PeckShieldAlert (@PeckShieldAlert) April 9, 2023

Staking ApeCoin became popular among the crypto community in December 2022. And the enticing rewards for NFT holders of assets linked with APE even grew the popularity. Notably, holders of BAYC get the largest share of rewards, and there is a dedicated pool for both.

But now that there is possible insecurity, participants might need to watch how they provide a maximum of 10,094 APE into the pools. However, information from Dune Analytics showed that there were 46.14 million APE already staked in BAYC’s pool.

When compared with the other LPs, only the major ApeCoin pool had a higher number of tokens deposited into it. This implies that a good number of BAYC holders subscribed to be validators.

BAYC on its oars, APE rising

Meanwhile, Santiment’s data showed that a lot of volume had entered the ApeCoin ecosystem lately. As of 8 April, the volume reached 104.29 million before its drawback. The rise in volume suggested an increased number of transactions on the network.

This invariably aligned with the sudden spike in APE metrics.

With reference to circulation, on-chain data revealed a high number of APE have been used in the last seven days. At press time, the seven-day circulation was 62.45 million, although it seems to have stabilized around that region.

Source: Santiment

How much are 1,10,100 APEs worth today?

For BAYC, its sales volume decreased within the same period. According to CryptoSlam, BAYC’s volume in the last seven days was $71.9 million, illustrating a 25.46% decrease. This meant that interest in trading items in collectibles was not solid.

Source: CryptoSlam

In view of PeckShield’s revelation, traders and stakers alike should exercise restraint in committing their assets to the activity without due diligence.