Will the SS Bored Ape Sink?

Ethereum takes a hit

• 55,000 Otherdeeds (virtual land ownership) sold at 305 Apecoin apiece during the launch. 305 Apecoin, at the time of the launch, was valued at $5,800 real-world dollars, which brought Yuga Labs $320 million in profit. 
• But, the blockchain Ethereum which many used to finance their transactions, faced an overwhelming number of transactions that disrupted its functions. 

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Into the ether

• Because of the record amount of traffic on Ethereum, some transactions were not completed, which permanently destroyed $158 million worth of Ether coins in the process. 
• For the failed transactions, buyers still had to pay the transaction fees (known as gas fees). Yuga promised to pay back these buyers. 

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What were they buying? 

• Buyers were buying Otherdeeds, which are tokens representing plots of land in the Metaverse. 
• The tokens are a combination of Ethereum coin and NFT by Yuga Labs. 

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Consequences of the land grab

• Apecoin dropped 16% on the Monday after the launch. 
• Apecoin is the currency for the BoredApe collection, but many buyers or owners actually use Ethereum for NFT transactions of BoredApe tokens. 

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Outrage at the circus

• Some buyers whose transactions failed expressed outrage at the creators of BoredApe for what they are calling a disastrous launch. 
• The virtual deeds are associated with a game set to be launched in the Metaverse called Otherside. 
• Initially, the company announced it would release deeds in waves, but a second wave never came. 
• Some buyers felt that the company’s response to the sale was “tone-deaf.”

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