The biggest thing to happen to crypto since Bitcoin?
It’s either a great or terrible idea to start this newsletter the day after the biggest and most controversial NFT launch we’ve seen yet (more on the launch below).
Anyways, thanks for stopping by! My goals for this newsletter going forward are pretty simple:
Publish a short-form crypto-themed note every Monday through Friday
Educate and entertain myself and this audience
Transparently attempt to spin $10K fiat USD into F.U. crypto money
I hope you enjoy these notes and that I’ll eventually earn your sub. At some point I’ll set up a Twitter or email so you can send me feedback.
Otherside launch primer
In the coming months, Yuga Labs, the brand-building geniuses behind the Bored Ape Yacht Club, will be releasing a metaverse/game called Otherside. To kick things off, last night Yuga dropped Otherdeeds, which will serve as plots of land in Otherside.
Yuga raised over $300MM USD in the initial land sale, which degens could mint using the nascent $APE coin. The demand at launch was…extreme. The minting process stress-tested Ethereum mainnet so hard that gwei (a.k.a. ‘gas’, or transaction fees) shot up to as high as 2.5 $ETH per transaction, on top of the 305 $APE (~$5K USD) per plot price tag for non-Bored Ape or Mutant Ape holders (who were able to claim their plots for free). Ethereum mainnet burned 55K ETH (~$150MM USD) in fees on the Otherdeeds smart contract alone.
Because so much ETH was burned at mint, NFT Twitter not surprisingly lost their shit. Detractors claimed that Yuga botched the launch and potentially turned off new entrants into the NFT space. Some of their arguments were that Yuga should have used a raffle system like the Moonbirds launch a few weeks ago, or they should have used a gas-optimized ERC-721A minting contract, or they should have launched on an Ethereum L2 like Optimism. Yuga wasn’t having it:
It was very interesting to watch this play out and it will be very interesting to see what happens in the NFT space over the next few weeks. With this much liquidity sucked out of the system and all of the attention turned on Yuga, plus macro-economic turbulence, will the NFT market slow down coming off of an arguably strong month of April? Stay tuned…