does it effect performance, overheating engine, cracking the pipe ?!?

 ... just dont want to mess up ma zilla ...

Wrapping the pipe will reduce the noice that rings off the body of the pipe. 

Wrapping the pipe will typically push the torque and power peak 100 to 400 RPM higher. 

Wrapping the pipe should not make it crack unless the pipe was constructed from inferior materials, the wrong welding filler rod was used or the welds are too thick.