SNEAK PEEK
- Over $30 million worth of the tokens have been transferred into the contract of the Ape Foundation, which allowed staking for its APE currency.
- Bored Ape Yacht Club and Mutant Ape Yacht Club holders of the Web3 collective’s two primary non-fungible token (NFT) collections received the token, which serves as the ecosystem’s native currency.
- Around $3.94 is the current price for the APE coin.
Beginning on December 12, owners can stake their APE tokens or Bored Ape/Mutant Ape NFTs on ApeStake.io to begin receiving rewards. The company’s website states that 96.2 million APE, or around $391 million at press time, has been set aside as a prize for customers who take part in staking.
Staking is still prohibited in a few nations, including the United States, where the bulk of Bored Ape owners reside. The Ape Foundation, a decentralized autonomous group led by a few well-known community members, cited regulatory concerns as justification.
Owners of the Bored Apes and Mutant Apes tokens are losing their staked apecoin since they neglected to delist their paired NFTs before staking their respective tokens.
According to security firm PeckShield, Apecoin staking went live on December 5, numerous owners of Bored Apes and Mutant Apes have already encountered issues as a result of the way the staking functionality works. Two traders have already made between $8,000 and $10,000 by focusing on Bored Ape owners. In both cases, the victims lost their staked APE after selling their NFTs.
These phenomena are likely due to the way ApeCoin staking works. Users have the option of directly staking their tokens or linking them to their Bored Ape or Mutant Ape NFTs. Only the tokens are locked in the smart contract when they’re paired. However, because the associated NFT serves as the access key in this scenario, the holder forfeits the staked APE to the NFT’s buyer.
if you’re staking your ape and it sells, you lose the staked $ape.
— tropoFarmer 🍌 -35.eth (@tropoFarmer) December 6, 2022
if you’re staking your ape and it sells, you lose the staked $ape.
your ape is the key to the safe containing your staked/earned $ape. if you sell the key, you can’t open the safe (the new buyer can).
be smart.
APE staking function has been targeted by skilled, large investors. The first step in the procedure is to buy a bored or mutant APE whose owner has staked ApeCoins. These traders generally take out a fast loan to generate the funds necessary to purchase the NFT.
The staked tokens are given to the new buyer after the NFT is sold. The next stage is to convert NFT and ApeCoin into ether. The trader’s sales revenue is enough to cover the loan’s repayment and still leave him with a profit.
The hype around staking hasn’t done much to boost Bored Ape NFT values, which have fallen dramatically (more than 50% in ETH) during the summer. Approximately $87,000 was the floor price for a Bored Ape at press time on the NFT marketplace OpenSea.
The biggest cryptocurrency exchange in the world by volume, Binance, revealed that an APE staking program would be coming to its NFT marketplace when rewards start to accrue on Dec. 12.
