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Anonymous Trader Bags Over $800K Using Flash Loan on ApeCoin Airdrop

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.

https://etherscan.io/tx/0xeb8c3bebed11e2e4fcd30cbfc2fb3c55c4ca166003c7f7d319e78eaab9747098