Phishing Scam Wreaks Havoc on NFT-Centric ApeCoin

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ApeCoin - Phishing Scam Wreaks Havoc on NFT-Centric ApeCoin

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The APE Foundation has a bold vision for ApeCoin (APE-USD) and its digital infrastructure: to represent the Web 3.0 economy and to “drive culture forward into the metaverse.” That’s ambitious and exciting, but recent security-related events could signal critical vulnerabilities.

As you’re probably aware, the metaverse and NFTs (non-fungible tokens) are red-hot topics among financial traders. So, if you’re looking for a pure play on NFTs, this is about as pure as it gets.

Launched on March 17, 2022, ApeCoin is based on an NFT project known as the Bored Ape Yacht Club. While the token is available on some cryptocurrency exchanges, it’s reportedly also available to people holding Bored Ape NFTs.

APE-USD traded at $13.70 as recently as April 2. However, it pulled back to the $12.50 area not long ago.

According to a report from Decrypt, ApeCoin plunged 8% in a 24-hour period. This was triggered by an alleged phishing scam perpetrated on the Bored Ape Yacht Club NFT collection’s Discord channel.

A tweet from Bored Ape Yacht Club provided some ominous details, stating, “A webhook in our Discord was briefly compromised.”

Granted, Bored Ape Yacht Club assured that “We caught it immediately.” However, the tweet also warned, “Other Discords are also being attacked right now.”

Apparently, at least one NFT has been lost due to this phishing scam. So, for a while, prospective ApeCoin investors might want to be cautious and watch for further security-related developments.

To borrow a phrase from InvestorPlace contributor Alex Sirois, the evolution of NFTs “is a very tricky thing to predict.” It’s a buzz-worthy market segment, no doubt, but there will be problems as it’s still developing.

It’s fine to take a small position in ApeCoin if you envision a robust future for the metaverse and NFTs. However, be prepared for volatility as security-related issues are likely to persist with these new, envelope-pushing technologies.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/phishing-scam-wreaks-havoc-on-nft-centric-apecoin/.

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