PeckShield Alerts Investors to the Risks of APE Token Staking in NFT Pools

Blockchain security firm, PeckShield has issued a caution to crypto customers about the hazards associated with APE staking in Non-Fungible Tokens (NFT) projects.

The warning came shortly after a hacker purchased a Bored Ape Yacht Club (BAYC) NFT and received staked APE associated with the sold NFT. PeckShield provided information that the exploiter purchased 14,300 APE tokens worth around $60,000 after purchasing BAYC 7810.

While staking is the practice of keeping a particular crypto or digital assets for a set time to earn rewards, PeckShield is saying there is a risk of losing staked tokens the associated NFT is lost.

PeckShield went further to say that crypto investors should carefully research the operating principles of these investments before investing in NFT pools.

Additionally, PeckShield advised users of the SushiSwap protocol to retract approvals or transfer their money to a different wallet due to a problem in the RouterProcessor2 contract. PeckShield recorded the occurrence earlier today and said that more than 1,800 Ethereum tokens valued at more than $3.3 million were lost.

Subsequently, the head chef of Sushi Swap, Jared Grey, recognized the problem and stated that the protocol worked with security experts to reduce the breach.

Prioritizing Safety in the NFT Industry

The NFT industry has witnessed significant growth and adoption in recent years. Some digital firms have also leveraged the platform to expand their offerings. For instance, Sony, a maker of gaming consoles, has filed a patent application that would make it possible to move NFTs between different games and platforms.

However, with the popularity of NFTs, safety worries have surfaced, especially in relation to the safety of the platforms used to produce, store, and trade NFTs. Last month, one Ethereum (ETH) wallet suffered massive losses after selling 500 Moonbirds NFTs.

Therefore, prioritizing safety in the NFT industry is critical to protecting users’ investments, preventing hacking or theft of valuable assets, and preserving the industry’s reputation. Without adequate safeguards, the NFT industry may face significant risks, resulting in financial losses for investors and harm to the overall market.