When Bored Ape Yacht Club The creators of Yuga Labs have announced that their Otherside NFT collection will launch on April 30, according to many it will be the biggest NFT launch ever. The other side is upcoming game Bored Ape Yacht Club, and the NFTs in question were acts of land in this virtual world. Supported by the success of BAYC – it’s worth it about $ 300,000 to buy at the club – The sale of 55,000 plots brought Yuga Labs about $ 320 million in three hours.

He also smashed Ethereum in three hours.

Consumers paid thousands of dollars in transaction fees, whether or not those transactions were successful. Because the launch loaded the entire blockchain, crypto merchants could not buy, sell or ship coins for hours. The sale underscores the growing profitability of the NFT market, but also the uncertainty about whether blockchains are stable enough to handle attention.

On the other side is Yuga Labs’ view of the metaverse, a large virtual word inhabited by thousands of people. Metaverses have existed for decades
– Second Life, Fortnite and World of Warcraft are examples – but the newly discovered noise around the term is related to the belief of blockchain supporters that cryptocurrencies and NFT will revolutionize the model.

The argument is that NFTs allow real ownership of digital assets and cryptocurrencies as a means of facilitating the digital economy. Metauniverses like Sandbox, currently in beta, allow players to create in-game items and own plots of land on which they can do whatever they want: build a house, become a retailer, use it for advertising or run a virtual business . The idea is that if these worlds are inhabited by millions, a la Fornite or World of Warcraft, this land becomes exponentially more valuable. Boosters say it will lead to more organic user-created worlds, while critics say the search for profit will take away from the fun of gaming.

Otherside will consist of 200,000 plots of land, divided into two waves: 100,000, starting with the sale on April 30, and another 100,000 rewarded by those “who contribute to the development of Otherside” in the coming months. The sale on April 30 consisted of 55,000 plots, with the rest provided free of charge to the owners of Bored Ape Yacht Club and Mutant Ape Yacht Club NFT.

Each plot cost $ 5,846 (or a coin of 305 monkeys, the Yuga cryptocurrency created for its metauniverse, which was valued at $ 19.17 per coin at the time of sale). Other countries’ land deeds were sold immediately, with Yuga contributing about $ 320 million. Virtual land speculators hoping to make a profit grinned: sales in the secondary market of OpenSea, NFT’s largest market, ranged from $ 20,000 to $ 30,000.

It was a huge success for the end result of Yuga Labs, but not necessarily for its reputation or blockchain technology in general. The launch of NFT was fraught with problems that highlighted all the inefficiencies stemming from cryptocurrency trading.

The biggest one is gas charges. To make a transaction in Ethereum, you must pay for “gas“- essentially a transaction fee, the cost of which is determined by how much activity takes place in the blockchain. In a situation where demand is ahead of supply, such as the launch of a new BAYC collection, players can pay more gas to reach gas charges between $ 10 and $ 100 are typical, but due to high demand and the desire of wealthy crypto investors to secure their land, people digging NFT for land from other countries have reduced the fee to $ 7,000. for gas (2.6 ether).

One person spent $ 44,000 on gas to buy two plots of land, four times the amount spent on the NFTs themselves. Again, they could immediately sell each plot for up to $ 30,000 immediately after felling, so they will stay green. Still, this shows how inaccessible crypto and NFT trading can be for newcomers.

Because the Otherside Mint affects the entire Ethereum blockchain, people do completely unrelated things like selling ether or altcoin trade they will also have to pay huge fees and wait for hours to clear their transactions. Someone tweets a photo of them trying to send $ 100 in cryptocurrency from one wallet to anotherwhich shows that it requires $ 1,700 in gas fees.

Worse are those whose transactions on the other side have failed. Because the number of people trying to buy was greater than the supply of Otherside NFT, not every attempt was successful. (This way, people pay thousands for gasoline to make sure their transaction goes to the top of the line.) Unsuccessful transactions usually cost about $ 30, painful enough. Because the gas was so insanely high, these failed transactions ended up costing some people up to $ 4,500 (1.6 ether).

Above $ 175 million was spent on gas alone. Ethereum blockchain there is a deflation protocol which burns most of the ether spent on gas – so much of that $ 175 million is now just gone.

South Laboratory said in a statement on Twitter that it will reimburse these fees for failed transactions and that it can develop an entirely new blockchain to carry out its meta-universal activities. Ethereum is a known inefficient blockchain, while others such as Solana and Tezos are much cheaper and less harmful to the environment. Others argue that the mistake is not in Ethereum, but in the way Yuga Labs organizes the sale and inefficiency of its smart contract.

“Needless to say, tonight didn’t go the way someone wanted it to,” wrote Greg Solano, one of the founders of the Bored Ape Yacht Club, on Twitter. “I want to apologize to the monkeys and everyone else who was looking forward to joining the project.

Despite the painful start and a lot of angry whistles, don’t expect Otherside to fail. At the time of writing, more than $ 557 million in Otherside land deeds have been sold in OpenSea, making it the fifth largest collection of all time. Combined with $ 320 million spent during the public sale, this means that Otherside is approaching $ 1 billion in volume.



https://www.cnet.com/personal-finance/crypto/how-bored-ape-yacht-club-broke-ethereum/#ftag=CADf328eec

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