Yuga Labs points out everything that’s wrong with the NFT space

  • Disastrous Mint Otherside Leaves Many People Paying Thousands of Dollars in Gas Fees and Receiving Nothing
  • Yuga Labs refused to apologize, instead blaming Ethereum and citing the need to create its own blockchain to scale
  • The entire episode encapsulates the increasing centralization of wealth in NFTs, with the average investor being outrageously priced
  • In many ways, the Yuga ecosystem appears to be the exact opposite of what crypto intends to be

Which circus this weekend turned into the NFT world, and I don’t mean the right kind (are there good kinds of circuses? They’ve always felt a bit cruel to me).

Yuga Labs, the company behind Bored Ape Yacht Club, had their highly anticipated Otherside mint on Saturday night, for land purchases in their upcoming Metaverse game. The startup, which was worth $4 billion before this weekend, had a great weekend by any measure, raking in around $320 million from the Mint.

However, the lucrative windfall was the opposite of what happened for most investors. Due to colossal demand, Ethereum gas fees have spiked into the four digits, leaving many investors to hoard huge amounts of gas – and still not get the land they wanted.

Foreseeable problems

The problem, however, is that everyone knew it was coming. Yuga’s actions were incompetent, and it wasn’t just their egregious failure to optimize the contract. They also dropped the originally bullied Dutch auction, in a complete lack of transparency, and belatedly announced the mandatory purchase of ApeCoin.

Moreover, they failed to prevent the mass farming of KYC wallets. Perhaps worst of all, they donated 15,000 to their investors, again in a lack of transparency, which further canceled the offer and pushed gas even higher. All of this led to an entirely predictable gas war and many hopeful newbies who lost thousands of dollars.

Although Yuga said he would refund petrol to those who failed in the deals, that doesn’t help the thousands of people who couldn’t get land – as the company refused to allow those who ran out of preference in any ensuing sale, a move seen by many. in the community as very unfair.

But the fallout is deeper, unfortunately. $100 million in liquidity was sucked out of the NFT space as traders sold their assets in order to accumulate the colossal amount of ETH needed to buy land (and also pay for gas). Etherscan crashed with all the activity, and Solana also suffered an outage due to cascading failure of blockchain validators, following a flood of bot activity after the mint. NFT collections elsewhere on Solana and Ethereum also saw prices plummet as traders sold in droves to get the funds into their wallets for the mint – a mint that then preceded to shut out many.

Yuga fails to read the play

The lack of transparency, consideration and empathy on Yuga’s part was quite sad to see. Worse still, after remaining silent for much of the disaster, they posted the tone-deaf tweet below, showing that they have completely lost touch with the average investor. Refusing to apologize, they instead blamed Ethereum for the whole mess, saying they needed a chain of their own to pursue their grand ambitions of Web3 dominance.

However, anyone familiar with crypto could have predicted this in advance, and the real blame lies with Yuga for not optimizing the contract. Their solution now is to create a sort of “BSC-style” centralized blockchain, and expand their empire and power even further into space?

As a reminder, this company already owns the largest NFT project on the planet in Bored Apes, the intellectual property rights to the second largest collection of CryptoPunks and their own coin with a market cap of over $4 billion. Now they also want their own blockchain?

Ethereum has some issues, I won’t deny that, but with the upcoming merger they are at least working on it. Not to mention the size of the community and the number of incredibly smart individuals working there. What exactly has the Bored Ape Yacht Club done for the community? What did Yuga Labs do?

Centralization of wealth

This is the latest episode that shows just how exclusive the NFT world is getting. What average investor can afford to shell out four figures in gas, plus the price of the actual land (which was 305 ApeCoin, worth $7,000 on Saturday) for the chance to enter the Yuga club? More and more, it is becoming a playground for the extremely wealthy, where wealth consolidation is getting dizzier by the day. Sadly, this is the exact opposite of what so many people love about crypto – a more democratic, fairer, and accessible monetary infrastructure.

Additionally, many merchants bought the ApeCoin from Yuga in order to make the purchase. ApeCoin, you may recall, was released to all Bored Apes holders in March. 10,094 coins appeared in each holder’s wallet, which equals $150,000 at current prices. Of course, already owning an Ape, which currently has a floor price of around $300,000, means those who got the ApeCoin dumped were already doing “well”.

Not to mention that ApeCoin’s tokenomics are wildly disparate, with 15% of the bid going to Yuga Labs, 14% going to BAYC founders, 15% to early BAYC owners, and 8% who worked on the launch. of CAD. For those who count, this represents more than half of the offer.

This week’s Otherside mint was meant to finally be a pathway for ‘normies’ to enter the ecosystem. Yet most were unable to do so due to the gas war, and others were even more affected by the fact that ApeCoin fell 40% after the currency problems. The bag holders there, of course, are the same normies who failed to convert that ApeCoin into what they wanted – a land of Otherside.

Anti Crypto

As I said above, crypto was meant to be a fairer system; a more accessible, open and democratic monetary environment. Tell me, what is right here? A browse on Twitter will see Ape holders lambasting those complaining about the Saturday mint for not having the guts or the means to pay the steep gas charges. HFSP, or NGMI, are the common acronyms for those who failed to secure a plot of land. I wonder how different their attitude would be if they hadn’t gotten their hands on an Ape before the price skyrocketed to where it is now.

As a die-hard crypto fan who spends half his time defending the industry to skeptics in trad-fi and beyond, this is an upsetting day. This is symbolic of one of the often-criticized characteristics of crypto – the centralization of wealth. It was always meant to be the place for underdogs, where anyone could become someone.

Sign out

I will probably be seen as a disgruntled, jealous and sad person for not having a piece of the BAYC empire. Honestly, that’s kinda true – I don’t own any part of Yuga, and I’m sad, but not for that reason. I’m sad because I love crypto and I love the opportunities it presents. What I’m seeing in Yuga right now is the opposite of what makes me so excited to be in this space; contrary to why I stopped my trad-fi job to take the plunge.

Of course, it would be nice to be in the Bored Ape Yacht Club for financial reasons. But right now it’s more like a Bored Ape 1% Club.

I might stay poor, but at least I’ll have fun doing it.

We want to thank the writer of this post for this remarkable material

Yuga Labs points out everything that’s wrong with the NFT space

Check out our social media profiles and other related pageshttps://metfabtech.com/related-pages/