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Yuga Labs Apologizes for Disrupting the Ethereum Network With Its $561M Otherside Sale

On April 30th, Yuga Labs, the creator of one of the most popular non-fungible token (NFT) collections – the ‘Bored Ape Yacht Club (BAYC)’launched land sales for its much-anticipated metaverse project, the ‘Otherside’.

Yuga Labs Causes Major Spike in Ethereum Gas Fees

Within 24 hours, Yuga Labs generated more than $561 million from just the Otherside’s ‘Otherdeed NFT sales. However, the massive NFT sales came with unexpected consequences; due to gas fees being paid in ETH, the frenzy saw Ethereum network fees spike to unprecendented highs.

At the sale’s peak, we reported that gas fees skyrocketed to $3,800, and as high as $6,500, while some users even reported seeing $14,000. Otherdeed was the biggest gas contributor on Ethereum, growing by more than 42,000%.

Yuga Labs Apologizes for Disrupting the Ethereum Network After Backlash

The event left community members unhappy, with Yuga Labs subsequently being accused of fraud, manipulation, and preferential treatment during the Otherside land sale.

Acknowledging the high gas fees and failed transactions experienced by users in light od the astronomical gas fees, Yuga Labs issued an apology. Yuga Labs shared on Twitter:

On the Flipside

  • The massive gas fees came with an upside, as the sale saw more than $200 million worth of ETH be permanently destroyed, pushing ETH issuance 18% into deflationary territory.

Why You Should Care

To help the project scale, Yuga Labs has proposed that ApeCoin be migrated to its own chain to avoid future disruptions of the Ethereum network.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.