It is not only in the privileged districts of Paris or facing the sea on the Côte d’Azur that land is exchanged for millions of euros.
In the virtual world too: this weekend, Yuga Labs launched a sale of land related to its new metaverse project, these new virtual and immersive universes populated by 3D avatars. He collected some 320 million dollars, unheard of for a transaction of this type.
“These plots sold out very quickly, recalling the interest both in terms of the number of people and the amounts committed for this new metaverse. These plots will allow each of their holders to create their own universe: games, sports stadiums, cinemas and even other things, underlines Thibault Genouville, consultant at BCG. Yuga Labs already has a well-established reputation and community in Web 3”.
Yuga Labs is indeed not at its first attempt in the madness for the virtual: supported by big names like Andreessen Horowitz (who invests massively in Web3), Animoca Brands (known for its metaverse The Sandbox and his game Axie Infinity), Coinbase (one of the biggest crypto exchange platforms), he is the studio behind the “Bored Ape Yacht Club” collection, these very famous images of monkeys, in NFT , which are digital certificates issued and exchangeable through decentralized ledger technology (blockchain), which proves ownership.
Demand for Yuga Labs’ land in its future metaverse dubbed Otherside has been such that it has disrupted the Ethereum blockchain ecosystem, Bloomberg news agency reports.
More specifically, 55,000 plots were put up for sale in the form of NFTs (called “Otherdeed”). The subtlety is that these parcels were payable in a cryptocurrency, ApeCoin (APE), launched by Yuga.
Strong increase in commissions
These plots were displayed at a fixed price of 305 APE, or about 6,000 dollars at the end of last week. Price to which must be added the “gas fees”, a kind of network fee for the transaction to be carried out in a blockchain. “These are commissions paid to IT specialists who are responsible for maintaining the network and validating transactions in a decentralized manner”, specifies Thibault Genouville.
However, these commissions increase when there is a high number of transactions at the same time, following the law of supply and demand. This weekend, these “gas fees” thus rose to unprecedented levels, even beyond the price of the NFTs in question and disrupted trading. Some transactions could not be completed and platforms using the Ethereum blockchain were affected.
Observers have thus pointed the finger at this sale. “Some believe that another setting might have allowed lower transaction costs. Which also reminds us that the technology will have to improve further,” continues the BCG expert.
Yuga Labs has also apologized via Twitter for this, while suggesting that perhaps ApeCoin should have its own blockchain.
We’re sorry for turning off the lights on Ethereum for a while. It seems abundantly clear that ApeCoin will need to migrate to its own chain in order to properly scale. We’d like to encourage the DAO to start thinking in this direction.
— Yuga Labs (@yugalabs) May 1, 2022
Some of the big investors behind Yuga Labs have also bought plots. But in addition to the 55,000 plots put up for sale, land has been allocated to members of the Bored Ape Yatch Club.
Yuga Labs had been in the spotlight in March when it successfully raised $450 million – one of the largest deals in the industry – valuing the studio at $4 billion.
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NFT: ‘Bored Ape Yacht Club’ sells land in metaverse for $300 million
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