Yuga Labs, the firm behind the Bored Ape Yacht Club (BAYC) family of non-fungible tokens (NFTs), has released a new set of NFTs called Otherdeeds that will allow holders access to a forthcoming metaverse land.
Yuga Labs Has Done Well With Other NFTs, And ApeCoin Has Not!!
On April 30, the sale was held online. Yuga Labs’ own cryptocurrency, ApeCoin, may be used to purchase Otherdeeds NFTs.Yuga Labs sold 55,000 Otherdeed non-fungible tokens (NFTs). The owner of these NFTs received territory in the Otherside metaverse.
The Bored Ape founder raised more than $320 million from the sale, which was set at a fixed price of 305 ApeCoin (APE-USD). One NFT cost around $5,800 because one APE-USD token was trading at around $19. At present pricing, the value of 200,000 Otherdeed NFTs is projected to be $450 million, down 71 percent since their April 30 launch.
Otherdeed recently sold for 625 Ethereum (ETH-USD), or $1.5 million, on the NFT marketplace, a significant increase over the $5,800 the seller would have paid for the Otherdeed plus around $2,236 in transaction costs. Although the Otherdeed was the eighth-rarest of 55,000 sold, it’s difficult to see someone paying $1.5 million for a piece of virtual land that cost $8,036, but the value is in the eye of the beholder.
Yuga Labs can’t sell any of the ApeCoin it received from the sale of virtual land for a year, so it naturally has a longer-term outlook on the cryptocurrency’s price. However, as a recent Protocol article highlighted, It’s unclear how the Otherside will appear or how it will benefit holders of Otherdeeds.
Yuga Labs might develop its own blockchain to ensure that its 16.8 million ApeCoin tokens appreciate from their current deflated pricing. It has requested that the ApeCoin DAO (decentralized autonomous organization) hold a vote to determine whether or not it should shift from Ethereum to its own blockchain.
Yuga Labs’ success will determine ApeCoin’s future. Moving off Ethereum makes a lot of sense if gas fees are getting in the way, both practically and economically. Yuga Labs has a market capitalization of more than $4 billion. ApeCoin has yet to reap the full benefits of its strong ties. Perhaps in the future, it will.
Otherdeed was considered as a way for new investors to join the Ape community after being priced out of BAYC, MAYC, and BAKC.
The fact that it is the only currency in the Otherside metaverse and that the land auction in the secondary market would be traded in APE in addition to ETH fueled the optimistic sentiment toward APE.
Investors who believed in Yuga Labs and the concept of the Otherside metaverse hurried to buy APE in advance of the mint, paying 305 APE each plot. The rising demand for APE as the minting date approached was widely anticipated, as was the price increase prior to the mint. The rush to mine Otherdeeds caused gas prices on the Ethereum network to surge.
Even though ApeCoin transactions took place, Ethereum is required for gas, which is essentially a transaction charge. The price of gas increased dramatically as the number of transactions increased. ApeCoin’s future utility and worth have been questioned as a result of a failed mining process and the collapse of Otherdeed’s price.
ApeCoin (APE) has seen a lot of volatility before and during its digital land sale. The price of APE plunged from $26 at its peak on April 28 to $14 on May 2 – a 45 percent reduction in just a few days. The cost has now been reduced to around $6.