Posted on: Saturday, May 7, 2022 – 23:06 | Last updated: Saturday 7 May 2022 – 23:06
Yoga Labs, creator of the Bored Ape Yacht Club’s non-redeemable token pool, has sold virtual land associated with its long-awaited project to the Metaverse universe, raising nearly $ 320 million in the largest offering of its kind.
Demand was so strong that event-related activity resounded across the Ethereum blockchain, causing a halt in activity and increasing transaction fees.
Verified ApeCoin owners compete to buy documents for 55,000 virtual plots of land in Outerside, the project’s planned Metaverse game.
Due to expectations of strong interest, the price of ipcoin soared earlier this week before the sale of plots, the non-fungal tokens based on the Ethereum technology called “Otherdeed.”
Each piece of land cost the buyer about $ 5,800 based on the $ 19 ipcoin price, plus transaction costs, or “gas fees” as they are known in Ethereum, which rose sharply after the start of the sale, as the land purchase attracted huge demand. has.
Following launch, the transaction cost of the non-fungal Azerdeid tokens was $ 123 million. Each Azored coin requires about $ 6,000, or two Ethereum coins, according to Etherscan data, which is more than the price of the land document itself.
“The sale of Yoga Labs’ virtual land has led to one of the highest increases in transaction fees on Ethereum,” said Jason Wu, founder of the DeFiner decentralized lending protocol. Gas, but it’s definitely one of the highest. “
Where’s the money?
Exploiting a token or making a transaction on Ethereum requires cryptocurrency creators or traders to pay a fee to those who activate the transaction on the network. Transaction fees increase when the network becomes overloaded, because higher fees help identify priority transactions, and this can affect the business of Ethereum-based applications such as Uniswap, which slows down transactions on these other platforms.
Yoga Labs initially planned to carry out the sale in the form of a Dutch auction in which the price of non-fungal Azerdeed tokens would fall over time to prevent Ethereum from being overloaded with high transaction fees. But it later scrapped the format, with another plan to limit the “Otherdid” tokens that can be purchased through each wallet in each sale. The new plan could not alleviate the expected congestion, and Yoga Labs apologized on Twitter for the “disruption of the Ethereum network” and suggested the possibility of creating the IPcoin blockchain.
The ipcoins raised through the sale will be held, meaning they cannot be sold, reducing the cryptocurrency in circulation for one year, according to the Otherside Twitter account. A spokesman for Yoga Labs on Friday declined to say to whom the money raised goes, and whether major ipcoin owners such as Andreessen Horowitz, Animoca Brands and others are planning to take part in the sale of the land.
“Yes, we will buy too,” said Yat Seo of Animoca in a pre-sale email, adding that there are restrictions on the number of non-swingable characters a single digital wallet can buy at different stages. of the Azored token sale.
In addition to the 55,000 plots sold on Saturday, another 45,000 plots will be made available to owners of non-fungal Board Ape Yacht Club and Mutant Ape tokens, developers of Yoga Labs and other projects. It is expected that 100,000 coins will then be given to certain landowners, according to the Offshore website.
IPcoin strives to be widely used in a variety of so-called “Web 3” applications that use cryptocurrency and blockchain technology, and the idea is that owners can access a variety of opportunities, services, merchandise and games. It is also the driving force behind the ApeCoin DAO forum, whose board includes Reddit co-founder Alexis Ohanian, Amy Wu, founder of FTX, and Seo of Animoca. Prior to the sale of Azerdid on Saturday night, the world’s largest non-fungal token market OpenSea said it would accept ipcoin as a currency.
The biggest beneficiaries
Venture capitalists who helped launch ipcoin in March, including Andreessen Horowitz and Animoca, were among the biggest beneficiaries of ipcoin, which was introduced as a “bonus” as certain groups of coin holders automatically encrypted 1 billion crypto-currency as’ received a reward. They and other launch partners have acquired 14%, or 140 million cryptocurrencies, and the price of ipcoin has nearly tripled since the coin was launched, according to data from CoinMarketCap.
The enthusiasm around the area contrasts sharply with most of the cryptocurrency market, which has traded volatile in recent months. Bitcoin has fallen 18% since the beginning of the year, and monthly sales volume on OpenSea was higher in April than in March, but still lower from an everyday high in January, according to data tracker Dune.
While many applications have previously sold virtual countries for cryptocurrencies, most of them have only seen a few users and transactions. In Decentraland, for example, the number of transactions has dropped by 35% over the past 30 days, according to data tracker DappRadar.
An issue date for Outside has yet to be announced, according to a Yoga Labs spokesman. A trailer from Yoga Labs shows a monkey catching a bottle and drinking its contents before embarking on an adventure, and software company Metaverse will help Improbable build the platform on the outside.