ApeCoin’s recently token airdrop presented a rare opportunity for an anonymous trader to gain a hefty profit from minuscule transactions fees. The trader supposedly leveraged a fractionalized NFT platform with flash mint support to make over $800,000 while paying $642 in transaction fees.
The ApeDAO launched its so-called ApeCoin ERC-2O token for the Ape ecosystem on Wednesday. An airdrop for Bored Apes Yacht Club (BAYC) NFT holders accompanied the launch as well.
According to the announcement, a single BAYC NFT allows its holders to claim some 10,094 APE coins within a 90 day period.
Following the token launch, an anonymous trader spotted an opportunity on NFTX, a platform that offers non fungible token fractionalization services. This means that a single NFT is broken into a group of smaller parts and multiple owners can claim ownership of fractions from the same NFT.
ShardX founder Yaniv Neu-Ner highlighted that NFTX also has a vault that features pieces from the BAYC collection fractionalized into BAYC tokens. Users can redeem a single Bored Apes NFT with a whole BAYC token.
The anon trader allegedly deployed the flash loan function on NFTX to mint 5.2 BAYC tokens and redeem five Bored Apes from the vault.
Afterward, they used the same wallet to claim some 60,564 free coins from the APE airdrop. ApeCoin currently trades at $13.75 per CoinMarketCap data, meaning the anon now holds an $832,755 bag.
Finally, the trader paid back the flash loan by returning the five Bored Ape NFTs to the vault and converted them back to fractionalized BAYC tokens.
In total, they paid $642 in gas fees and made over 1297% on their transactions costs.