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ApeCoin is up 6% as owners invest $32 million in the Ethereum-based Ape Token

ApeCoin_is_up_6__as_owners_invest_32_million_in_the_Ethereum-based_Ape_Token-1

The official staking contract has received about $32 million worth of APE in a single day, in addition to a large number of Bored Ape Yacht Club and Mutant Ape NFTs. ApeCoin’s staking rewards are slated to begin on December 12; this date is near.

The contract has received about 7.6 million APE and a handful of NFTs to date. Since Horizen Labs published the official staking contract on Monday, the price has increased by 6% over the previous 24 hours to $4.16.

ApeCoin, the Ethereum-based currency built for the Bored Ape Yacht Club ecosystem, has had a significant price gain in recent weeks ahead of the staking launch, with CoinGecko estimating an approximately 32% increase over the last 14 days. However, the token recovered from a record low when value fell to $2.63 on November 14 as a result of FTX’s collapse.

Horizen Labs’ staking approach rewards holders of ApeCoin, Bored Ape, and Mutant Ape NFT tokens that stake their tokens within the contract with APE token incentives. Over the next three years, 175 million APE, or 17.5% of the entire supply, will be allocated via staking, with 100 million of those coins going toward the first year’s incentives.

When Horizen Labs announced that clients in various countries (including the United States) wouldn’t be able to visit its official staking website, apestake.io, owing to regulatory difficulties, the staking concept was recently criticized.

However, the official ApeCoin Twitter account hinted that there may be more ways to engage with the staking contract and that other companies may provide global interfaces to make staking feasible without regional restrictions. Solidity.io, a Web3 startup company, has established one such website, apecoinstaking.io.

However, it appears that NFT investors are being puzzled by a known ApeCoin staking model anomaly. Users that stake both an ApeCoin and a Bored Ape NFT will connect the assets in the staking contract. If the NFT’s owner sells the NFT, they will also lose access to the ApeCoin tokens attached to it.

PeckShield, a security company, has already uncovered two instances in which Bored Ape NFT owners lost apecoin worth tens of thousands of dollars through arbitrage trades. Both times, the customer purchased the Bored Ape NFT with a DeFi flash loan, claimed the ApeCoin, sold the NFT, and repaid the loan with the proceeds from the sale.

About Tiffany Ellis

She is a smiley curious writer from the USA. She loves Cryptocurrencies, Arts an also NFTs.

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