ApeCoin up 6% as owners own $32M in Ethereum Bored Ape Token
by James · December 6, 2022
In short
- ApeCoin holders have staked nearly $32 million on the token since Monday.
- The price of APE is up 6% in the last day, and 32% in two weeks.
ApeCointhe stake rewards are just around the corner, and will start releasing on December 12, and official betting contract has already taken in nearly $32 million in APE in one day – along with a wealth of Bored Ape Yacht Club and Mutant Monkey NFTs.
More than 7.6 million APE have been deposited into the contract to date, along with a number of NFTs. That price has ticked up since Horizen Labs launched the official stake contract on Monday, and is now up 6% in the last 24 hours to a current price of $4.16.
ApeCoin, the Ethereum-based token created for the Bored Ape Yacht Club ecosystem, has seen a significant price increase the last few weeks ahead of the stake launch, with CoinGecko reports an increase of almost 32% in the last 14 days. However, the token bounced back from an all-time low, falling to $2.63 on November 14 in the wake of FTX collapses.
Horizen Labs’ staking model provides APE token rewards to ApeCoin holders who stake their tokens within the contract, as well as Bored Ape and Mutant Ape NFT holders who do the same. In all, 175 million APEs – or 17.5% of the total supply – will be awarded through stake over the next three years, with 100 million of that awarded in the first year of rewards.
The staking model recently faced backlash when Horizen Labs announced that its official betting website, apestake.iowould be unavailable to users in some countries (including the United States) due to regulatory concerns.
However, the official ApeCoin account on Twitter suggested that there are other ways to interact with the staking contract and that other companies could create global interfaces to enable staking without location restrictions. Such a platform, apecoinstaking.iowas developed by Web3 startup Solidity.io.
However, a notable feature of the ApeCoin staking model is apparently tripping up NFT holders. Users staking both a Bored Ape NFT and ApeCoin will tie the assets together within the staking contract, meaning that if the owner sells the NFT, he or she will lose access to the ApeCoin tokens associated with it.
Security company PeckShield has already highlighted two examples of Bored Ape NFT holders who collectively lost tens of thousands of dollars worth of ApeCoin through arbitrage games. In both cases, the buyer took out one DeFi flash loan to buy Bored Ape NFT, claimed ApeCoin, resold the NFT, then repaid the loan while making a profit.
