The much-anticipated virtual land sale related to Yuga Labs’ Metaverse project went live hours ago and has impacted a significant portion of the entire crypto market. Huge demand resulted in nearly $200 million worth of ETH fees, while the price of ApeCoin fell by double digits after the sale.
Since Yuga Labs, creator of popular NFT projects like the Bored Ape Yacht Club, announced Metaverse project Otherside, expectations for actual sales have soared. This caused the price of BAYC’s native token, ApeCoin, to surge, as the group said it would be used to buy virtual land. Unexpectedly, APE hit an all-time high a few days before Yuga Labs’ launch. The transaction did start a few hours ago and wreaked havoc on the Ethereum network — the blockchain it was built on. Data from Etherscan shows that users associated with Otherside have paid nearly 64,000 ETH in fees over the past 24 hours, which equates to more than $175 million. Will Papper, co-founder of Syndicate DAO, said the contract is “almost zero-fuel optimized” and offers “tricks” that could “save millions of dollars.”
The ERC721Enumerable extension is mostly unnecessary. Tracking ownership on-chain is useless in most cases.
Why? You can get off-chain data on the front end and pass it to a smart contract! Every front end can handle this easily.
— Will Papper ✺ (@WillPapper) May 1, 2022
Yuga Labs also addressed the incident, noting that Mint was “so big that Etherscan crashed” and apologized for “turning off the lights on Ethereum temporarily.” The creators of BAYC also promised to reimburse gas fees for users whose transactions fail, and suggested that ApeCoin should be lightened to its own blockchain in the future.
We apologize for temporarily turning off the lights on Ethereum. Clearly, ApeCoin needs to migrate to its own chain in order to scale properly. We want to encourage DAOs to start thinking in this direction.
— Yuga Labs (@yugalabs) May 1, 2022
After the sale, the price of ApeCoin was also affected. APE, which has been the best performer in the past week or so, has lost about 30% in the next few hours and is now at $17, compared to trading at $27 a few days ago. That was to be expected in part, as investors scrambled to buy APE ahead of the sale to participate in the sale.
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