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NFT fans lose millions in video game real estate sales - tech

(hx) 09:07 AM CEST - May,08 2022

The creator of the most recognizable NFTs available is again in the news for the wrong reasons. Bored Ape Yacht Club creator Yuga Labs recently made its Otherdeed collection available for purchase. It advertised the NFTs as a way to provide users with the ability to obtain land in its upcoming crypto-based MMORPG. Unfortunately, many fans instead walked away with nothing but disappointment, high transaction fees, and stolen funds. Yuga Labs sold Otherdeed NFTs via Opensea. The collection sold (or at least tried to sell) tokens to claim real estate and resources in Yuga's upcoming metaverse game, Otherside. The NFT drop netted approximately $310 million in just a few short hours. Unfortunately for Yuga Labs, the sale generated far more traffic than expected on the Ethereum blockchain. This increase in traffic resulted in Ethereum gas fees of up to $14,000 for some users and failed transactions for others. Gas fees are charges passed on to users to compensate for the computing energy of processing Ethereum transactions. To make matters worse, some who experienced failed purchases were still charged for the energy costs. According to Crypto Briefing, users paid $165 million in gas fees during the sale due to Otherside's poorly developed smart contract code.

The attack resulted in millions of dollars in NFTs being stolen and sent to scammer's wallets. ZachXBT, a self-proclaimed crypto "rug pull" (scam) survivor and on-chain transaction investigator, has identified several fraudulent sites and wallet addresses, one of which appears to have earned more than $5 million from unsuspecting users.

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

last 10 comments:

Csimbi	(10:44 AM CEST - May,08 2022 )
Facebook will have the same thing happening when the bubble bursts.

Sabot	(11:47 AM CEST - May,08 2022 )
Facebook just went up this year after lockdown lifted to 2million users since January. As for this garbage. Get a life….

Csimbi	(01:06 PM CEST - May,09 2022 )
Yeah, Facebook is still inflating the bubble.

spectra9	(08:49 PM CEST - May,09 2022 )
What's with everyone's fascination with this stupid ape crap?

Csimbi	(12:34 PM CEST - May,15 2022 )
Seems to me the bubble is going to burst sooner than I expected.

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