Yuga Labs Annuls Metaverse Launch, Apecoin Remains Bullish

BAYC NFT collection owners, Yuga Labs, have announced a cancelation of its Otherside metaverse launch. Instead, Yuga Labs’ will make 55K Otherside NFTs available for sale for a combined sum of 305 Apecoins. However, only KYC-verified users will be eligible to make a purchase. Yuga Labs’ previous plan (as announced on April 24) was to perform a Dutch auction to sell land plots in its Otherside metaverse.

But the team chose to cancel the launch as it fears that it may not meet demand and the gas fees for the transaction would be too expensive. Suppose Yuga Labs were to continue with the planned launch using the Dutch auction system, the price range of received bids will determine the price to sell the whole offering.

Dutch auction System Often Results in Rising Gas Fees – Otherside

The official twitter account for the Otherside launch confirmed the cancellation. The tweet explained the problems associated with Dutch auctions. The tweet added that the sale of the Otherdeeds NFTs won’t start immediately. “Members have requested for more time so that they can set pre-approval for Apecoin.”

Hence, users will have until April 30, 9am ET to set up their Apecoin pre-approvals. Then, sales will begin 12 hours later. The decision to cancel might be a wise one given the huge demand for the Otherdeed NFTs. The huge demand would result in signnificant increase in gas prices because large amounts of the NFTs would need to be minted.

There would be little or no spike in gas fees as the wave-like minting mechanism would be the one to be used. Through this mechanism, it is possible to mint double the number of previous NFTs when each wave is completed. The team predicts a reducing demand with each completed wave. Hence, gas fees will dip to moderate levels with each completed wave.

Ethereum Whales are Accumulating More Apecoin Tokens

A recent WhaleStats report states that two top Ethereum whales bought nearly 223K Apecoin tokens in four different trades within the last six hours with each transaction about an hour from each other. The bought Apecoins are worth nearly $4.72m based on the current Apecoin price.

The WhaleStats report states that three of the Apecoin purchases were by an 859th ranked Ethereum whale, while the last one was by an 84th ranked Whale. Apecoin tokens have been hugely attractive to crypto investors being launched around mid-march 2022. 

As the native token of BAYC NFTs, the Apecoin token is in massive demand the same way BAYC NFTs have been in huge demand. One other factor that drove the massive spike in Apecoin interest is the announcement of the Otherside metaverse launch.

During the announcement for the Otherside metaverse launch, Yuga Labs, which owns BAYC NFTs and Otherside metaverse, also revealed that Apecoin will be the native token for the sale of plots in the metaverse. Even though the metaverse launch has been canceled, the demand for Apecoin has dwindled.