Most buyers of the hotly-anticipated Otherdeed non-fungible tokens (NFTs) drop are not able to sell their digital land deeds at a profit, due to the high Ethereum (ETH) gas fees they paid during minting, as well as the decreasing demand.
According to NFT data aggregator CryptoSlam, Otherdeed NFTs sales are down by 24.6% over the past 24 hours, with nearly a 45% decline in the number of new buyers.
The floor price of the collection, the smallest amount of money you can spend to purchase an Otherdeed NFT, has also taken a hit, dropping by 9.46% from ETH 3.7 (USD 10,532) to ETH 3.35 (USD 9,536).
Given that the majority of users paid exorbitant gas fees during the mint, the decreasing demand further pushes them underwater.
As per Etherscan data, users paid anywhere between ETH 2.6 (USD 7,356) to ETH 5 (USD 14,147) in gas fees. The NFTs were minted at APE 305 each, which means each Otherdeed cost about USD 5,800 (ETH 2) given Apecoin’s price (USD 19) at mint time.
Subtracting the minting price of ETH 2 from the current floor price of ETH 3.38, it turns out that any buyer who paid more than ETH 1.38 in gas fees is currently in the red.
Notably, some have turned to wash trading in order to artificially increase prices and paint a misleading picture of their NFTs’ value. According to CryptoSlam, Otherdeed wash sales have increased by a whopping 13,203,094% over the past 24 hours.
Launched by Yuga Labs, the startup behind the popular NFT collection Bored Ape Yacht Club (BAYC), Otherdeed NFTs went live on Saturday night. The NFTs are supposed to be “the key to claiming land in Otherside,” Yuga Labs’ upcoming metaverse game.
The Otherdeed mint attracted huge attention, clogging the Ethereum mainnet and leading gas prices to skyrocket. The average gwei, or price of Ethereum gas, surged to more than 6,200 over the course of the mint night.
“This has been the largest NFT mint in history by several multiples, and yet the gas used during the mint shows that demand far exceeded anyone’s wildest expectations,” Yuga Labs said. “The scale of this mint was so large that Etherscan crashed.”
Yuga Labs also pledged that they would refund the failed transactions, and even pointed out the need for their own blockchain. “It seems abundantly clear that ApeCoin will need to migrate to its own chain in order to properly scale,” the company said.
Meanwhile, scammers have also managed to steal millions worth of NFTs through phishing attacks impersonating Yuga Labs amid the hype behind the Otherside NFT drop.
There have been several phishing attempts, ranging from fake websites to forged Twitter accounts impersonating the company and its metaverse initiative.
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