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Yuga Labs, the creator of Bored Ape Yacht Club, launched their newest NFT project this weekend. “Otherside” was arguably the most hyped mint ever, selling digital plots of land in the metaverse. The plan was simple - sell the NFTs in ApeCoin, use the Ethereum blockchain for processing, and sell 55,000 plots to accommodate the demand.
Except nothing went as planned.
A near-instant sell-out resulted in an unprecedented amount of demand. Yuga labs turned a near $300M profit, but at the cost of pressure testing Ethereum’s infrastructure and frustrating buyers. Etherscan failed during the mint, gas prices hit levels never seen before, and the entire Ethereum network bottlenecked because of the drop.
It was madness.
But the records continue. The Otherside project has already taken the #1 position on OpenSea for 30-day volume and is fast approaching top 5 all-time volume in just the couple of days it has been on the market. INSANE. It was by far the largest mint on OpenSea, ever.
Perhaps the most impressive metric was the amount of Ethereum burned from this drop. If you visit the Ethereum burn leaderboards here,
you’ll see that Otherside NFTs are in the all-time #6 position for total Ethereum burned. Within one hour of the mint, 26,000 Ethereum were burned, and after 24 hours that number doubled - $155,000,000 permanently removed from the market (another good reason to hold Ethereum).
As rough as the launch was, not everything went poorly. Those who managed to mint are already sitting in profit and currently hold a highly coveted NFT. Furthermore, those that failed to mint are being refunded their gas. Yuga Labs went out of their way to do this, which is not something that usually happens. Plus, if you hold Ethereum, you should be happy about the burn because there is less supply on the market.
Seemingly no major NFT drop happens without controversy. Some are saying that the mint was just an unfortunate gas war and others are saying it was a setup for ApeCoin to switch chains. Who knows.
It is clear that we are “still early” and that there is still a lot of work to be done in the NFT and layer 1 space to scale for mainstream adoption. Problems like these can’t happen when 10x more people are involved. Nothing would work.
A mint should not shut down an entire blockchain, no matter how popular it is. But catastrophes aren’t all bad. Without setbacks, it’s hard to know where we are weak and strong. Now developers can address the issues and fix them for the next wave.
In This Issue:
- NFT Madness
- Bitcoin Thoughts And Analysis
- Altcoin Charts
- Berkshire Hathaway Dismisses Bitcoin
- Tough Week For Layer 1s
- My Recommended Platforms And Tools
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