While the sale was a resounding success, APE holders had expected a Dutch auction, which could have pushed the price of the Otherdeed NFTs well above the flat selling price of 305 APE.
As a result of the lower price, APE holders offloaded APE, leading to the reversal.
Each Otherdeed NFT represented a land plot in Otherside, Yugo Labs’ metaverse game.
Last month, market expectations that ApeCoin will become the ‘payment token of choice’ for the Otherside land sale drove APE to $ 27 levels.
Bored Ape owner Renegademaster took to Twitter to share news of Yugo Labs getting ready to sell land on the Otherside metaverse.
According to the tweet,
“The sale will be a Dutch auction of some sort starting at $ 600 APE.”
Renegademaster went on to say,
“This info was sent to me by a reliable source, however, is not confirmed or official news. Speculation at this stage so please DYOR as always! Just sharing what I was told. ”
This info was sent to me by a reliable source, however is not confirmed or official news. Speculation at this stage so please DYOR as always! Just sharing what I was told. ✌️
– renegademaster / guccibayc.eth (@renegademasterr) April 20, 2022
In a Dutch auction, the seller considers all bids before finding a ceiling price for the NFT sale. There is then a gradual price decline at predetermined time intervals.
Expectations were for a price ceiling of 600 APE, double the actual flat selling price of 305 APE.
The sale was not without controversy, with high demand causing an Etherscan crash and failed transactions.
We wanted to say a few words about the mint tonight. 🧵
– Yuga Labs (@yugalabs) May 1, 2022