What You Need To Know About The BAYC Land Sale - OthersideMeta
GM degens 🤙
Please note, this entire newsletter is dedicated to the OthersideMeta project. If you have read about it, then feel free to ignore today’s newsletter.
Probably this is the 1238723 time you have seen an article about BAYC Otherside project (btw, pretty sure you did not bother reading that number). I know, everyone is talking about it. But we are still required to cover this topic as it is the largest (to-date) NFT token ever launched.
Today’s email will be entirely dedicated to this project and study what happened. Get your chips, a Coke and keep scrolling.
Hang on, what is OthersideMeta?
OthersideMeta is a Metaverse game experience created by Yuga Labs. Yuga Labs are the founders of Bored Ape Yacht Club. The also have other projects in their portfolio including MAYC, BAKC, BACC as well as the ones they recently bought, CryptoPunks and Meetbits.
While, there is no clear expectation on what they plan on doing with CryptoPunks and Meetbits, Yuga Labs granted full commercial rights to all CryptoPunks and Meetbit to those who owns NFTs. That was not the case prior to the sale, Larva Labs did not give commercial rights to the NFT owners.
Anyways, back to OthersideMeta metaverse project. Like every other project, they need to create assets first, those assets are being sold as NFTs and all of them will be used to built the entire ecosystem for the game. They already had game avatars and characters, so what was left from the assets (there might be more in the future), was land. So the mint that happened on 4/30 was for the land plots, which they called them as Otherdeed for OthersideMeta.
Guess what, mint was absolutely insane!!
This weird spike in the chart above that happened during the day of the mint and the day after, explains it. Absolutely a nightmare. Gas war. Although they stated that:
“NFT “Dutch auctions” are actually bullshit. They do not successfully mediate demand, nor do they really negate gas wars in highly-anticipated mints. “,
the way they run mint for Otherside, it was even worse in terms of gas war. If you are not familiar with gas fees, check out this article.
Just the public mint, when gas was spiking, 64k ETH was spent in gas fees only, which is around $180 million. The highest gas fee per transaction was 16ETH ($44k) to mint two Otherdeeds.
Some people who are knowledgeable in the space of web3 did comment on the smart contract used for the mint. they were complaining that Yuga Labs would’ve been able to avoid all those issues where people lost a lot of money on failed transactions.
It didn’t take long and Vitalik argued that in such situations where hype is up to this level, you cannot really do anything in a smart contract to avoid having issues like this.
We can argue all day long, if Vitalik said that, I don’t care how smart you are, Vitalik is always right. I trust him with my 401k, he owns our souls.💀
Another thing worth mentioning is that there were people who replicated the smart contract that Otherside used but they optimized it. According to their statement, with those changes, they would have saved around 40k ETH ($100 millions).
The good thing about Yuga Labs is that they have decided to refund all those people who had failed transactions, which was worth a couple of millions of dollars of failed transactions.
💸 Whatever, let’s talk $$ and ETH
Cost per mint was 305 $APE, or roughly $6.5k which brought Yuga Labs more than 310 million dollars (with this amount of money, you can give everyone in US $1 million and still have some left). If you don’t get the joke, unsubscribe my newsletter please.
Secondary sales have reached around 200k ETH in trading. They do have a 5% royalties so that is expected to bring them a couple more millions of dollars. As per CryptoSlam, total Sales were $625 millions since launch.
According to their Pitch deck which was released unintentionally, during the first phase of the mint, there were 100k plots available for mint. From those, 55k were for public mint, the rest was saved for BAYC and MAYC holders, as well as a few for the team.
🤖 So, how’s going after mint?
Not that great. In fact, pretty bad. People are disappointed. Everyone was expecting that get rich quick scheme. It did not play well. Here are some stats below to give you perspective on the prices
Otherdeed for Otherside - Went from 10ETH floor price to 3.7ETH
Bored Ape Yacht Club - Went from 153ETH floor price to 116ETH ( ~$100k down 🔻)
Mutant Ape Yacht Club - Went from 40ETH floor price to 23ETH (~$50k down🔻)
ApeCoin - Went down from $25 to $15 (~$10 down 🔻)
😮Sooo..where does it go from here?
Well..it seems to be one of those things “Sorry not sorry”. As per their official tweet under their Yuga Labs twitter profile, they expect to build their own blockchain on $APE.
Some people even argue that this whole gas war and all the issues with the contract was intentional on their side, in this way they have a reason to come up with their own blockchain.