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Otherside Mint Gas War Disaster

What's Dropping, UK NFTs Are Property, And More

May 03, 2022

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What's Dropping ⚡️

  • Solana ($SOL) endured a 7-hour outage this past Saturday, making this the 7th outage the network has faced this year. Yikes.

  • The floor of RTFKT Skin Vials, which allow you to change the look of the RTFKT x NIKE DUNK GENESIS CRYPTOKICKS, fell below 1 ETH for the first time. The CryptoKicks floor is holding just around 2 ETH.

  • People seem to be loading up on Doodles (floor now above 23 ETH) in anticipation for something big.

  • YugaLabs sold 55,000 plots of digital land for the total equivalent of $320 million, but the mint was an absolute disaster (outlined below).

  • Sunday was the biggest trading day in the history of OpenSea. Over $467 MILLION in trading! See the absurd chart here.

  • YugaLabs' Floors: BAYC 114Ξ, MAYC 25.7Ξ, Kennel 8.15Ξ, M1 Serum 48Ξ, M2 Serum 61Ξ, Mega Mutant ∞Ξ (lol), Otherdeed 3.75Ξ, Otherdeed with Koda 23Ξ

Otherside Mint Disaster 😔

Whenever we write about BAYC or Yuga Labs, we usually paint them in a very positive light, opining on their numerous accomplishments. Today, sadly, that is not the case and we must call a spade a spade.

TLDR, The Otherside land mint was a straight-up gas fee disaster for the most part. This past weekend, Yuga Labs commenced their Otherside mint on Saturday, 4/30 at 9PM EDT. What was supposed to be a mint resulting in a cost of 305 $APE ($6,710 at $22/coin) plus gas, turned out to be what some people thought was a glitch inside of Metamask. Users on the platform reported seeing upwards of 3.5 ETH in gas fees. Adding salt to the wound, a lot of folks pushed their transactions through before the server overloaded - which in turn buyers ended up losing a substantial amount of ETH in the form of gas fees. It was reported that some community members lost up to 2 ETH in gas on failed transactions.Below is an amazing thread that digs even deeper into the mishap:

While Yuga Labs did publicly acknowledge the overload, this act does not rectify the issue, nor does propose a solution for building a new blockchain. Users meticulously sold their NFTs to trade for enough $APE in order to participate in Saturday’s drop. After all of their diligence, they were not able to mint. Then, they witnessed the price of $APE plummet from $22 at the time of mint, to a mere $15 at the time of writing. That’s a staggering 32% loss. Not only that, but the entry to Otherside is now about 4 ETH, which is about double the mint cost. That leaves a sour taste in a lot of investors’ mouths. One of the saddest parts about the Otherside mint is it failed to bring fresh faces into the NFT space - whales ande "OGs" were the only people that could really get in on the action.

All problems aside, Otherside has been performing outstandingly on the secondary market. The floor is sitting comfortably around 4 ETH, while the total volume traded is around 181k ETH. Yes, that’s right. That’s about 50% higher than the total all-time volume traded on Moonbirds. And this is 1/6 the price of a Moonbird. Yuga Labs has a lot of explaining to do, but in the meantime, YGMI.

 United Kingdom: NFTs Are Property 🧾

The Drop has previously written on how NFT’s mark a sophisticated legal development, as they broaden the playing field for people to benefit from legal coding that turns ordinary objects into lucrative assets. While much of the promise of NFTs has lived with the conviction that its contract confers individuals with ownership rights, the United Kingdom’s Supreme Court has officially recognized NFTs as property. Lavinia Osbourne took to the assistance of the courts when two of her Boss Beauties NFTs were stolen from her wallet. The court ordered an injunction on Opensea to freeze the accounts of those involved in the theft, as well as ordering the platform to release the thieves’ account information. OpenSea was swift to comply and disabled the sale of the stolen NFTs. 

The intervention of the state in protecting NFT holders signals a step forward in the normalization and recognition of NFTs as personal property. Even in the U.S., courts will soon have to act on the tremendous amount of litigation being directed towards OpenSea and LooksRare, on account of their negligence in allowing phishing and thefts to occur. This is certainly a success for NFTs, as they are being appreciated as assets by governments, but it remains to be seen if intervention from centralized entities compromises decentralization. 

Meme Drop 💧

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Disclaimer: The Drop DOES NOT provide financial advice. All content is for informational purposes only. The Drop is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any crypto-related asset is extremely risky and could result in significant capital losses. 

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