Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. Today we are going to have a quick look at the recent minting, and disaster associated with it, from Yuga labs for their Otherdeeds. As many of you may be aware they are the creators of BAYC and Ape Coin, and on the 30th of April at 9pm ET they began the minting of the deeds for their Otherside metaverse.
Minting
Upon the initial release of info back in March, the company expressed a desire to “build something that expands the universe of the BAYC, but also invites the larger NFT community (and those priced out of BAYC membership) to join.” That will be known as Otherside, which is a MMORPG (Massively Multiplayer Online Role-Playing Game) connected to the BAYC ecosystem.
55,000 parcels of Otherside land, known as “Otherdeeds,” were made available for purchase at a staggering cost of 305 $APE. Users were required to make use of wallets that completed the Yuga Labs KYC (Know Your Customer) process back in March. To did their best ensure there was a wide distribution, meaning wallets were limited to 2 Otherdeeds each, which would increase as the sales progressed.
Yuga Labs Apology
Once the minting fiasco took hold, the creators Yuga Labs decided they needed to release an apology to their community and loyal followers via Twitter. As seen in the screenshot below, the company, which is considered a market leader in the NFT space, did not assume blame for the issues that occurred. While that is an acceptable stance, they did not do themselves any favours by claiming they "did not foresee the unique challenges of a mint at this scale" and also ensuring to brag about their project basically bringing down Etherscan. To add to the disappointment of many fans who didn't manage to mint due to the extremely high gas fees, which were anywhere between 1.3-1.75 ETH at one point, and likely even higher, while the price of $APE also crashed.
The final tweet as part of their apology, or more so acknowledgement of what happened, the Yuga Labs team hinted at their need to create their own chain. This is based on the inability of Ethereum to scale, meaning they could end up using this situation as a reason to develop their own L1 or L2 chain, and basing it around $APE. Nothing is confirmed on this but certainly the possibilities are there and the rumours are swirling.
Community Complaints
Many people saw this as their first opportunity to get into the BAYC community, seeing as a standard BAYC is priced more than most can afford. While some people managed to get in, most didn't have the extraordinarily high amount of ETH required for minting. Many within the community had been expecting a gas war, and the fact Yuga Labs didn't plan for this shows poor coordination and planning on their behalf.
Some people even ended up making transactions and burning their ETH to end up with nothing from it. This is one of the most disappointing parts, with rumours swirling that anywhere from $140 million + was burnt. For those who did manage to secure their deed, they were some of the lucky ones. Many have gone on to flip them on secondary markets, making big gains of up to 4x at the time of writing on their investment, all within the space of a few hours. For those who don't sell and retain their plot, the incentive is obvious. Money is there to be made from developing your plot and long-term have a stable income from it. How much that income will be depends on the effort and work put into developing your plot.
Hopefully you were not one of the unfortunate ones who got excited for the release but ended up with nothing in return. It will be interesting to see how things pan out once the dust settles from all of this, and where $Ape and Yuga Labs will go next from all of this. You can check out the secondary market on Opensea here: https://opensea.io/collection/otherdeed
Have a great day.
Peace. CryptoGod-1.
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