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NFT company raises around £ 227 million in crypto to ‘virtual land’

Bored Ape NFT

Sales disrupted the entire Ethereum blockchain as a stream of users rushed to buy the NFTs and skyrocketed transaction fees (Image: Reuters)

People have paid a total of around £ 227 million ($ 285 million) in cryptocurrency for land that does not physically exist.

The creators of the popular Bored Apes Yacht Club (BAYC) collection of NFTs launched a sale of ‘virtual land’, which made users fight for deeds to plot in the metaverse.

In an online sale on Saturday, Yuga Labs, the company behind BAYC, sold NFTs called ‘Otherdeeds’, which it said could be exchanged as plots of land in a future Bored Ape-themed online environment called ‘Othersideeds’.

The NFTs or ‘Otherdeeds’ sold by Yuga Labs would represent a piece of land in a virtual world that it says it is building.

A total of 55,000 Otherdeeds sold at a fixed price of 305 ApeCoin, around £ 4634 ($ 5,800), at the time of purchase in what was considered the ‘largest NFT coin in history’.

Sales disrupted the entire Ethereum blockchain as a stream of users rushed to buy the NFTs, sending transaction fees skyrocketing.

‘Otherdeeds’ could only be purchased using the project’s associated cryptocurrency, called ApeCoin, which was launched in March.

The Bored Ape Yacht Club NFTs are blockchain-based tokens representing a set of 10,000 computer-generated comic monkeys that exploded in popularity and began selling for thousands of dollars each.

BAYC became one of the most prominent NFT brands, with Apes sold at the best auction houses and owned by celebrities including Paris Hilton and Madonna.

Bored Apes Yacht Club

The Bored Ape Yacht Club NFTs are blockchain-based tokens representing a set of 10,000 computer-generated cartoon monkeys (Image: BAYC)


What is an NFT?

Non-fungible tokens (NFTs) are cryptocurrencies that represent digital files such as images, video, or objects in an online game.

It was not clear how the funds would be distributed, though the company said ApeCoin would be ‘locked in’ for a year.

The sale indicates the continuing demand for speculative, high-risk cryptocurrencies related to online virtual worlds. NFTs are largely unregulated, and reports on Fraud, counterfeiting and market manipulation are common.

The Otherside meta-verse will be a multi-player gaming environment, according to its website, which says it is currently under development but has no launch date yet.

Yuga Labs ‘Otherdeeds sale comes shortly after the Bored Ape Yacht Club’s official Instagram account was hacked and a phishing link posted so scammers can steal victims’ NFTs.


What is Metaverse?

It is a world of interconnected virtual communities where people can meet, work and play using virtual reality headsets, augmented reality glasses, smartphone apps or other devices.

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