This Thursday (5), Yuga Labs, the company responsible for the Bored Ape Yacht Club (or BAYC) franchise, announced that it had “refunded gas fees to everyone who made failed transactions” during its chaotic issuance of the new NFTs Otherdeeds last weekend.
We have refunded gas fees to everyone who made a transaction that failed due to network conditions caused by the mint. The fees have been sent back to the wallets used for the initial transaction. Here’s how to find your refund… 🧵— Yuga Labs (@yugalabs) May 4, 2022
More than $157 million worth of ether (ETH) was “burned” during the issuance of the new non-fungible tokens (or NFTs), temporarily causing transaction fees to skyrocket to levels seen in Q3 2021 — impacting, of course, all markets. Ethereum users.
Some Otherdeeds buyers reported paying more than double the sale price of 305 apecoins (APE) — approximately $5,800 at the time — in fees alone, while others saw their transactions not validated but still being charged by the gas.
Approximately 56% of all ether burned between April 25th and May 2nd was caused by the sale of Otherdeeds.
Yuga Labs spent 90.57 ETH (or $265,500) on refunds, according to block explorer Etherscan. The largest single refund cost Yuga 2.6 ETH (nearly $7,500) while the gas fees paid by the company during the refund process reached around $780.
What happened during the sale of Otherdeeds?
Even just a year old, “Bored Ape Yacht Club” is a well-known name in the crypto industry. A brief look at the NFT CryptoSlam data aggregator indicates that currently three out of the top five projects are part of the BAYC universe.
In fifth place is the derivative Mutant Ape Yacht Club (or MAYC). Second, the original BAYC collection — in the last 24 hours alone, $15 million was traded. First place is Otherdeeds, with a transaction volume of $44 million in the last 24 hours.
While BAYC and MAYC are collections of profile picture avatars (PFP) — basically, tokenized profile pictures that contain an eradicatable ownership agreement on the Ethereum blockchain — the purpose of Otherdeeds is a little more cryptic.
Many believe the 55,000-token collection represents digital land titles for Otherside, the future metaverse of BAYC.
Disgruntled fans quickly criticized Yuga Labs after the sale, suggesting the company could have opted for a more formal and efficient launch.
Yuga Labs itself suggested that it could migrate apecoin, the native token of the BAYC ecosystem, to its own blockchain, prompting Ethereum developer Mark Beylin to call the company “crooks of the highest order”:
Just finished exiting all of my Ape related NFTs— Mark Beylin (@MarkBeylin) May 2, 2022
now that Yuga has revealed their true colors, I can't unsee it
con artists of the highest order
The sale-related headache also caused the floor price of BAYCs to drop. The cheapest Bored Ape available on OpenSea has an offer of 95 ETH (or $278K). That’s a drastic drop of 32% from the low of 146 ETH (or $429k) recorded last Friday (29).