TL;DR
- Yuga Labs, the creator of the Bored Ape Yacht Club, has burned nearly $1 million worth of Ethereum gaming NFTs in collaboration with the game studio Faraway. This decision was made after transferring their gaming property to Faraway.
- The recent fire incident significantly affected the Ethereum network, leading to a drastic increase in Ethereum gas fees due to the popularity of Otherdeed NFTs from Yuga Labs’ new Metaverse project, “Otherside”.
- Yuga Labs’ decision to destroy $1 million worth of Ethereum gaming NFTs not only represents their approach to business but also highlights the volatile environment of the NFT market. This move brings up concerns regarding the long-term viability of these practices.
Yuga Labs, the creator of the Bored Ape Yacht Club, has burned nearly $1 million worth of Ethereum gaming NFTs. This strategic decision was made in collaboration with the game studio Faraway, which requested the burning of over 4,000 HV-MTL NFTs.
The HV-MTL NFTs made up a big part of Yuga Labs’ gaming assets, comprising 14% of their overall supply. The decision to burn these assets comes after transferring their gaming property to Faraway as part of a post-sale strategy. This action aims to boost the value and rarity of the NFTs that are still available, a regular practice in the NFT industry to keep up interest and investment.
Yuga Labs’ decision to burn these assets is not only a testament to their commitment to their new era of gaming IP but also highlights the volatile and ever-evolving nature of the NFT market. The company has been at the forefront of innovation within the space, and this latest action further cements its position as a leader in the industry.
The recent fire incident significantly affected the Ethereum network. The popularity of Otherdeed NFTs from Yuga Labs’ new Metaverse project, “Otherside,” led to a drastic increase in Ethereum gas fees. Certain users even had to pay up to 2.6 to 5 ETH, which is around $7,400 to $14,270, just to complete their transactions.
Yuga Labs’ Commitment to a New Era of Gaming IP
This incident has brought to light the scalability issues faced by the Ethereum network, especially during high-demand events like NFT sales. In response to the overwhelming demand and the network clog, Yuga Labs has expressed intentions to build its own blockchain and migrate its ApeCoin to it, to better scale for future endeavors.
After the intense commotion calms down, people in the cryptocurrency world are now thinking about what the consequences of such extreme actions could mean.
Yuga Labs’ decision to destroy $1 million worth of Ethereum gaming NFTs is not only a representation of their approach to business but also highlights the ever-changing and occasionally volatile environment of the NFT market. This move brings up concerns regarding the long-term viability of these practices and the direction of digital asset management in an increasingly digital society.
