The sale disrupted the entire Ethereum blockchain as a flood of users rushed to purchase the NFTs and sent transaction fees soaring (Picture: Reuters)
People have collectively paid around £227,000,000 ($285,000,000) in cryptocurrency for land that does not physically exist.
In an online sale on Saturday, Yuga Labs, the company behind BAYC, sold NFTs called ‘Otherdeeds’, which it said could be exchanged as plots of virtual land in a future Bored Ape-themed online environment called ‘Otherside’.
The NFTs or ‘Otherdeeds’ sold by Yuga Labs would represent a plot of land in a virtual world it says it is building.
A total of 55,000 Otherdeeds sold at a flat price of 305 ApeCoin, around £4634 ($5,800), at the time of purchase in what was considered the ‘largest NFT mint in history’.
The sale disrupted the entire Ethereum blockchain as a flood of users rushed to purchase the NFTs which sent transaction fees soaring.
The ‘Otherdeeds’ could only be bought using the project’s associated cryptocurrency, called ApeCoin, which launched in March.
The Bored Ape Yacht Club NFTs are blockchain-based tokens representing a set of 10,000 computer-generated cartoon apes which exploded in popularity and started selling at thousands of dollars each.
BAYC became one of the most prominent NFT brands, with Apes sold at top auction houses and owned by celebrities including Paris Hilton and Madonna.
The Bored Ape Yacht Club NFTs are blockchain-based tokens representing a set of 10,000 computer-generated cartoon apes (Picture: BAYC)
What is an NFT?
Non-fungible tokens (NFTs) are crypto assets that represent digital files such as images, video, or items in an online game.
It was not clear how the funds would be distributed, although the company said the ApeCoin would be ‘locked up’ for one year.
The sale indicates the continued demand for speculative, high-risk crypto assets related to online virtual worlds. NFTs are largely unregulated, and reports of scams, fakes and market manipulation are common.
The Otherside metaverse will be a multi-player gaming environment, according to its website, which says it is currently under development but has no launch date yet.
Yuga Labs’ Otherdeeds sale comes shortly after the Bored Ape Yacht Club official Instagram account was hacked and a phishing link posted, allowing scammers to steal victims’ NFTs.
What is the Metaverse?
It’s a world of interconnected virtual communities where people can meet, work and play, using virtual reality headsets, augmented reality glasses, smartphone apps or other devices.