Yuga Labs, the company behind the Bored Ape Yacht Club NFT collection, apologized after the sale of its of metaverse property Otherside temporarily disrupted the ethereum blockchain and sent transaction costs skyrocketing.
''''We''''ve Got Your Back''''
"We''re sorry for putting off the lights on Ethereum for a while. It seems evident that ApeCoin will need to migrate to its own chain in order to properly scale," Yuga Labs said in a tweet. "We''d like to encourage the DAO to begin thinking in this direction."
DAO is a decentralized autonomous business that is able to mimic a traditional company''s hierarchy.
In a follow-up tweet, Yuga Labs said, "we are aware that some users had failed transactions due to the immense demand being forced through the Ethereum bottleneck."
"For those of you affected, we appreciate your willingness to build alongside us know that weve got your back and will be refunding your gas," the tweet said. Gas is basically the fees you pay for a cryptocurrency transaction.
NFTs called "Otherdeeds" were sold during an online sale on April 30, according to Yuga Labs, which might be used as virtual land in a future Bored Ape-themed online environment called "Otherside."
"The amount of the mint was so large that Etherscan was so severe," Yuga Labs said.
Etherscan is a block explorer and an analytics platform that allows people to access information about any transactions on the ethereum blockchain.
''''Awestruck at the Demand''''
The "Otherdeeds" may only be purchased under the project''s associated cryptocurrency, ApeCoin, which was launched in March.
All of the 55,000 Otherdeeds were sold out for 305 ApeCoin apiece.
"The Otherdeed NFT mint is sold out, and we are saddened by the demand," OthersideMeta said on April 30. "Apes and Mutants, the opening of the 21-day claim period is being delayed until the price of gas has dropped to acceptable levels. Good tweet when the claim opens."
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According to cryptocurrency expert Molly White, the sale sparked a rise in gas prices.
"Say what you will learn from fiat currency, but Ive never had to pay VISA thousands of dollars for a $25 purchase," one person said.
"Transaction fees typically cover the energy costs of the transaction and verification on the blockchain," another person said. "Not all of the fee goes to that, of course, but it signifies huge energy costs for something with no real value."
OpenSea, a NFT company, said on April 30 that it began accepting $APE for its secondary sales of Otherdeed NFT.
"Eth gas has always been extremely expensive," one commenter said.
The Full Gas Fee
"It''s why a lot of people don''t use Eth and refuse to use OpenSea," the commenter said. "Even OpenSea''s own ''free NFT utility'' charges gas. So your NFT minting is free, but you still have to pay the whole gas fee."
Another tweet a $3,950 transaction fee for a $260 NFT.
"You might think that this should be the point where people realize that this is all bullsh*t," one person said. "But they don''t," said one person.
Yuga Labs earns money by selling the NFTs and even acquiring a small percentage when the NFT is purchased on the blockchain.
The most popular yacht club in the country, The Bored Ape Yacht Club.
There are only about 10,000 apes in the collection, and the minimum cost to purchase one is 93 ether, or $224,000. Celebrities such as Paris Hilton, Jimmy Fallon, and Eminem all have their own special apes.
Last week, BAYC was attacked by hackers who made off with millions of dollars worth of the simian photographs.