Last Saturday, Yuga Labs hosted one of the biggest NFT minting events of the year--releasing virtual land for their Otherside metaverse game. On 12:00PM EST, people who had previously gone through a pre-approved KYC process were able to buy Otherdeed NFTs, which allowed them to claim virtual land in the Otherside metaverse. You had to use Yuga Labs' native $APE token to pay for the Otherdeeds and use $ETH to pay for gas fees.
Each Otherdeed featured unique characteristics and some contained a rare 'Koda' creature. The 55,000 Otherdeed NFTs available for sale were sold within hours. These were priced at 305 $APE each, which was around $5,800 at the time of the mint. At these prices, Yuga Labs earned $318 Million in sales. A remaining 45,000 Otherdeeds will be airdropped to owners of Bored Ape Yacht Club and Mutant Ape Yacht Club NFTs.
While this was a hugely anticipated event for the NFT community, the demand for Otherdeeds clogged the Ethereum network and gas fees reached massive highs. People paid more gas to mint their NFTs more quickly, and soon people were paying thousands of dollars per transaction with gas prices 100-200x more expensive than usual. Many people experienced failed transactions but still had to pay thousands of dollars in gas fees ranging from $4,000-$10,000.
This issue with gas fees frustrated a lot of people in the NFT space and Yuga Labs promised to refund gas fees for people whose transactions did not go through. While apologizing for the messiness of the NFT mint, Yuga Labs also said "ApeCoin will need to migrate to its own chain in order to to properly scale." This hints at Yuga labs developing their own blockchain to use instead of Ethereum.
On March 19, Yuga Labs made an official announcement on Twitter about Otherside and while the full details weren't revelead, there has been sustained hype for the last several weeks. Last week, we hosted a Twitter Spaces discussion with Chris Camillo from Dumb Money to discuss the opportunities with Otherside virtual land.
Yuga Labs was recently valued at $4 Billion after raising funding from a group of prominent investors. They also acquired the IP of two major NFT projects CryptoPunks and Meebits. Their recently released $APE Coin has also been one of the biggest topics in the Web3 space. This constant stream of news has kept Yuga Labs at the forefront of the NFT scene.
While the Otherside mint has been criticized for all the issues around gas that made the project inaccessible, we anticipate that the Otherside game should still have significant growth and interest moving forward. While Yuga Labs definitely needs to address some of these challenges, what happens next with Otherside should be very exciting to follow.