An analysis of the 40% decrease in ApeCoin during a tumultuous land sale.
On April 30th, Yuga Labs launched 'Otherdeeds', which were key for Ape fans to enter the Otherside Metaverse.
But, during the mint, ApeCoin This resulted in a 40% plunge in value. Normally, one would expect the token to gain value since minting was exclusively possible with ApeCoin. What went wrong?
On April 27th, the creators of the Bored Ape Yacht Club revealed they would host a Dutch auction for minting. Consequently, on April 28th, ApeCoin reached a record high of $27.57.
Following this, Yuga Labs opted to cancel the Dutch auction, instead offering the virtual land at a fixed price. Each deed was priced at 305 $APE, equating to roughly $5,500 at the time of minting. Just three days post-announcement, ApeCoin's value had slumped to $17.
On the same day, OpenSea proclaimed that it would accept $APE for transactions on its marketplace.
This was the moment when the most substantial value drop took place. During the minting of Otherside Lands, users collectively spent a staggering 55,225 $ETH on gas fees. Since the contract was inadequately optimized, both users and Yuga Labs ended up losing around $154 million. Additionally, numerous users who minted two lands reported not receiving one of their deeds. Essentially, the whole 'ape-speriment' experienced a collapse.
Immediately after the incident, BAYC founders tweeted that Ethereum was at fault and hinted at plans to fork the Ape Chain. Ethereum's co-founder, Vitalik Buterin, countered that merely optimizing the contract wouldn’t resolve the issues. The market seemed to be behaving as expected, resulting in frustrated ape enthusiasts and significant Ethereum losses.
Currently, the price of $APE is at $15.78, reflecting a notable decrease from its peak of $27.51. Just like that, the wave comes and goes.
Read related posts:
- $154 million lost in gas fees throughout the Otherside Lands minting episode.
- The minting of Otherside Metaverse Lands kicks off tomorrow.
- Get ready, as the Bored Ape ‘Otherside’ Metaverse is set to launch next week, pushing ApeCoin to unprecedented heights.
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