Bet ApeCoin [APE] on NFT pools may lead to BAYC losses, according to…

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

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

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

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

Choose the vigilant way

In this referred casereported to PeckShield that a user had lost his BAYC and $60,000 in APE to a potential exploiter.

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#PeckShieldAlert If you bet $APE in the NFT pools and sell yours #NFT you will lose your bet $APE!

Exploiter/Arbitrageur 0x06800a has just purchased the following #BoredApeYachtClub #7810 and got the bet 14.3k $APE (~$60,000) pic.twitter.com/nA9tMDEi1A

— PeckShieldAlert (@PeckShieldAlert) 9 April 2023

Staking ApeCoin became popular among the crypto community in December 2022. And the tempting rewards for NFT holders of assets linked to APE even increased its popularity. In particular, holders of BAYC receive the largest share of rewards, and there is a dedicated pool for both.

However, now that uncertainty is possible, participants may need to see how they provide the maximum 10,094 APE in the pools. However, information from Dune Analytics showed that there was already 46.14 million APE staked in BAYC’s pool.

Source: Dune Analytics

Compared to the other LPs, only the large ApeCoin pool had a higher number of tokens deposited into it. This means that a good number of BAYC holders subscribe to be validators.

BAYC on the years, APE rising

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

This always agreed sudden increase in APE readings.

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

Source: Sentiment

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

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

Source: CryptoSlam

In light of PeckShield’s disclosure, both traders and stakers should exercise restraint in committing their assets to the activity without due diligence.