It is not only in the privileged districts of Paris or overlooking the sea on the Cote d’Azur that the land is exchanged for millions of euros. And in the virtual world: last weekend, Yuga Labs launched a sale of land related to its new metaverse project, these new virtual and immersive universes inhabited by 3D images. It raised about $ 320 million, unprecedented for a transaction of this type.
“These plots were sold very quickly, showing interest both in the number of people and in the amounts committed for this new post-universe. “These plots will allow each of their owners to create their own worlds: games, stadiums, cinemas and more,” said Thibault Genouville, a consultant at Boston Consulting Group (BCG). “Yuga Labs already has a well-established reputation and community on Web3. »
Indeed, Yuga Labs is not in its first attempt at the virtual craze: it is backed by big names like Andreessen Horowitz (who invests heavily in Web3), Animoca Brands (known for their metaverse The Sandbox and Axie Infinity game “). Coinbase (one of the largest encryption exchange platforms), is the studio behind the collection “Bored Ape Yacht Club”, these very famous images of monkeys, in NFT – digital certificates issued and exchanged through decentralized ledger technology (blockchain) that proves the property.
Demand for Yuga Labs land in its future meth system called “Otherside” has been such that it has disrupted the ecosystem of the Ethereum blockchain, according to Bloomberg News.
More specifically, 55,000 plots were put up for sale in the form of NFTs (called “Otherdeeds”). The subtlety is that these packages were payable in a cryptocurrency, ApeCoin (APE), released by Yuga.
Strong increase in supplies
These plots appeared at a fixed price of 305 RES, or about $ 6,000 at the end of last week. A price to which must be added the “gas charges”, a type of network charge for the transaction that will take place in blockchain. “These are commissions paid to IT specialists who are responsible for maintaining the network and validating transactions in a decentralized manner,” said Thibault Genouville.
However, these commissions increase when there is a large number of transactions at the same time, following the law of supply and demand. Over the weekend, these “gas charges” rose to unprecedented levels – even beyond the price of these NFTs – and disrupted trading. Some transactions could not be completed and platforms using Ethereum blockchain were affected.
So the observers pointed the finger at this sale. “Some believe that another regulation could have allowed lower transaction costs. “It also reminds us that technology needs to be further improved,” he said.
Yuga Labs also apologized via Twitter for suggesting that ApeCoin should probably have its own blockchain.
We’re sorry we turned off the lights on Ethereum for a while. It is clear that ApeCoin will need to migrate to its own chain in order to scale properly. We would 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 land. But in addition to the 55,000 plots put up for sale, land has been allotted to members of the Bored Ape Yacht Club.
Yuga Labs was 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.