Pledging APEs in NFT Pools: A Risky Investment?

04/09/2023 05:44 • Tech Ticker • 120 views

According to reports, security company Paidun disclosed on social media that if users pledge APEs in NFT pools and sell NFTs, they may lose their pledged APEs. According to data disclosed by Paidun, the arbitrageur “0x06800a” has just purchased “Boring Ape” BAYC # 7810 at the address beginning, and has obtained 14300 pledged APEs worth approximately $60000.

Paidun: If APE is pledged in the NFT pool and NFT is sold, the pledged APE may be lost

Cryptocurrency investments have become increasingly popular in recent years, with more and more people jumping on the bandwagon. One of the latest trends is NFTs or Non-Fungible Tokens, which have become a buzzword in the world of digital art and collectibles. However, NFT pools have come under scrutiny recently, with reports surfacing that users who pledge APEs in these pools could lose their assets.

What are NFT Pools?

NFT Pools are a type of smart contract pool that allows users to stake their tokens (usually APEs) in exchange for a chance to earn NFTs. These NFTs are usually rare and highly prized, and as a result, people often put up huge amounts of tokens to try and earn them.

The Risks of Pledging APEs

According to reports, security company Paidun disclosed on social media that if users pledge APEs in NFT pools and sell NFTs, they may lose their pledged APEs. The company claims that arbitrageurs have been exploiting a glitch in the system, allowing them to claim the APEs even if the NFT is sold on a different platform.

The Case of the Boring Ape

According to data disclosed by Paidun, the arbitrageur “0x06800a” has just purchased “Boring Ape” BAYC # 7810 at the address beginning and has obtained 14,300 pledged APEs worth approximately $60,000. This demonstrates the risk of pledging APEs in NFT pools, as investors may end up losing their assets to these arbitrageurs.

The Importance of Due Diligence

Investors should do their research and due diligence before investing in NFT pools and staking their APEs. It is important to be aware of the risks involved and the potential for losing assets. While NFTs can generate huge returns, they can also lead to significant losses if one is not careful.

Conclusion

Investing in NFT pools and staking APEs may seem like an attractive proposition, but it is important to be aware of the risks involved. Conduct thorough research and understand the potential for losing your assets before making any investments. As the cryptocurrency market continues to grow, it is essential to stay vigilant and informed.

FAQs

Q1. What are NFT pools?

NFT pools are a type of smart contract pool that allows users to stake their tokens (usually APEs) in exchange for a chance to earn NFTs.

Q2. What are the risks of pledging APEs in NFT pools?

Reports suggest that pledging APEs in NFT pools and selling NFTs can result in the loss of pledged APEs, as arbitrageurs exploit loopholes in the system.

Q3. How can investors protect themselves when investing in NFT pools?

Investors should conduct thorough research and due diligence before investing in NFT pools and staking their APEs. They should be aware of the risks involved and understand the potential for losing their assets.

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