Bored Ape Yacht Club Gassed Up

Yuga Labs, the company behind the Bored Ape Yacht Club, sold 55,000 virtual plots of land in its upcoming metaverse, Otherside, for about $5,800 each. While the transactions were done in ApeCoin, the NFTs were minted on Ethereum, where gas fees for each mint ranged from 2.6 to 5 ETH ($6,500-$14,000) at the time of the transactions. By the time the virtual land deeds sold out, buyers paid a total of about $123 million in gas fees to send Yuga Labs about $320 million. Ouch!

Yuga Labs said, “It seems abundantly clear that ApeCoin will need to migrate to its own chain in order to properly scale.”

Is it “abundantly clear?” No. It’s actually not clear at all.

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and the CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and CNBC and writes a popular daily business blog. He’s the Co-Host of the award-winning podcast Techstream with Shelly Palmer & Seth Everett and his latest book, Blockchain - Cryptocurrency, NFTs & Smart Contracts: An executive guide to the world of decentralized finance, is an Amazon #1 Bestseller. Follow @shellypalmer or visit shellypalmer.com.

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