Yuga Labs raises $561Mn from Otherside NFT sales within 24 hours

Yuga Labs raises $561Mn from Otherside NFT sales within 24 hours

Blockchain tech startup, Yuga Labs, creators of Bored Ape Yacht Club (BAYC), have reportedly generated over $561 million from its Otherside metaverse’s ‘Otherdeed’ NFT sales.

The sale went live on Saturday 2nd May, which crashed the Ethereum mainnet, causing the prices of ETH gas to surge.

Each Otherdeed NFT is meant to be a key for claiming land in the startup’s upcoming metaverse game, Otherside.

There were 55,000 NFTs minted at 305 APE each, meaning that each Otherdeed cost around $5,800 according to each Apecoin’s price of $19 at the time of minting, making over $318.7 million in the sale alone.

The NFT also earned more than $242 million during secondary trading, out of which $190 million was on the NFT marketplace OpenSea, as per CryptoSlam.

The Otherdeed mint sale also caused an Ethereum gas war, due to a large number of NFTs and a higher demand.

Gas wars take place when there is a sudden rise in demand for fast transactions, clogging the network and causing the fees to soar as users try to get their transactions done first.

Transactions related to the Otherside mint consumed 64,000 ETG in gas fees as of Monday, amounting to nearly $180 million, with some pointing out that it did not have to go that high if Yuga Labs had made some backend optimizations.

However, Vitalik Buterin, co-founder of Ethereum, believes otherwise, saying that optimizing the contract would not have helped.

Yuga Labs has promised that it will be issuing a refund for those whose transaction failed.

Otherdeed NFTs have also been criticized as being the first assets of Yuga Labs that do not offer full commercial rights to the holder.

Garga.eth, co-founder of Bored Ape, admitted that the mint was a ‘sour’ moment for the community. Yuga labs have also apologized for having turned off the lights on Ethereum, adding that it is clear that Ape Coin needs to migrate to its own blockchain to scale properly.

Source credit: https://decrypt.co/99156/yuga-labs-sees-561-million-in-otherside-ethereum-nft-sales-within-24-hours