Holders of the ApeCoin token who have verified their identities have jockeyed to purchase deeds for 55,000 virtual plots of land at Otherside, the project's planned metaverse game and the latest expansion in the Bored Ape franchise. Anticipation that interest would be strong in conspiracies — Ethereum-based NFTs called Otherdeeds — had driven ApeCoin's price higher last week ahead of the selloff.
Holders of the ApeCoin token who verified their identities jockeyed to buy deeds for 55,000 parcels of virtual land in Otherside, the project’s planned metaverse game and the latest extension of the Bored Ape franchise.
Each plot cost a buyer about $5,800 based on ApeCoin's price of $19 on Saturday, plus transaction fees, or "gas fees," in Ether, which skyrocketed after going live. sale at 9 p.m. New York time as land grabbing attracted high demand. Transaction costs just to mint Otherdeed NFTs after launch reached $123 million, with each Otherdeed requiring around $6,000, or 2 Ether, in transaction fees to mint, according to data from Etherscan – more than the price of the act itself.
“The sale of virtual land from Yuga Labs triggered one of the highest spikes in transaction fees on Ethereum,” said Jason Wu, founder of decentralized lending protocol DeFiner. "I've seen other NFT launches have high fuel costs, but this is definitely one of the highest."
Minting a token or making a transaction on Ethereum requires token creators or traders to pay fees to those ordering transactions on the network. Transaction fees increase when the network becomes congested as more fees are required to prioritize a transaction. This can impact the Ethereum-based activities of apps like Uniswap, effectively slowing down transactions on those other platforms.
Note:- Get more information Bored Ape metaverse frenzy raises millions, crashes Ethereum in this websites.
Yuga Labs originally planned for the sale to take place in a Dutch auction format in which the price of Otherdeed NFT would decline over time to prevent Ethereum from being burdened with high transaction fees. However, he later scratched the format and opted for another plan to limit the number of other stocks that can be bought per portfolio during each selling wave. The new plan failed to reduce the anticipated congestion. Yuga Labs apologized on Twitter for "turning off the light on Ethereum" and suggested the possibility of establishing an ApeCoin blockchain.
ApeCoins collected from the sale will be locked — meaning they cannot be sold, thereby reducing coins in circulation — for one year, according to Otherside's Twitter account. A spokesperson for Yuga Labs on Friday declined to say who the money raised will go to, or if major ApeCoin holders including Andreessen Horowitz, Animoca Brands and others plan to participate in the sale of the land.
"Yes, we will also be buying," Animoca's Yat Siu said in a pre-sale email, adding that there are restrictions on the number of NFTs a single digital wallet can buy at different stages of the sale. of the land deed.
In addition to the 55,000 Otherdeeds sold on Saturday, another 45,000 were awarded to holders of Bored Ape Yacht Club and Mutant Ape NFT, as well as Yuga Labs and other project developers, and another 100,000 tokens are expected to be awarded more late to some Otherdeed holders, according to the Otherside site. As the 55,000 Otherdeed NFTs were sold around midnight New York time, the process for BAYC and MAYC holders to claim their free Otherdeeds was initially delayed to avoid sending even higher gas charges. This unique claim was eventually reopened for these NFT holders when the gas charges were settled.
ApeCoin is striving to become widely used in a variety of so-called web3 applications, using digital coins and blockchains. The idea is for owners to be able to access a variety of events, services, merchandise and games. It is also the governance token of ApeCoin DAO, whose board includes Reddit co-founder Alexis Ohanian, FTX's Amy Wu, and Animoca's Siu. Ahead of Otherdeed's Saturday night sale, OpenSea said it would accept ApeCoin.
Venture capitalists who helped launch ApeCoin in March, including Andreessen Horowitz and Animoca, were among the biggest beneficiaries of ApeCoin, which was created as an "airdrop," in which certain groups of Crypto holders automatically received 1 billion tokens as a reward. They and other launch partners received 14%, or 140 million tokens.
