Otherdeed’s failed minting process and price drop took a toll on ApeCoin, leading investors to question the usefulness and value of APE going forward.

ApeCoin (APE), a new cryptocurrency recently launched by Yuga Labs, is slated to become the backbone of the Otherside metaverse, and the token has seen tremendous volatility recently before and after the digital land sale. The APE price fell from $26 at its peak on April 28 to $14 in May. 2 – Reduction of more than 45% within a few days after minting. Now the price has dropped to $6.

Given the current volatility, investors will be wondering if ApeCoin price will return to its former trading range. First, let’s look at the historical price trend, specifically what happened on the day Otherdeed was minted; Then examine the number of APEs that will be blocked and released over the next three years. This allows you to better understand the dynamics of supply and demand that may affect price in the future.

ApeCoin surged after Otherdeed’s announcement
In the first few days after the APE listing on March 17, 2022, the price rose from around $7 to $17 at its peak; 143% growth! Since then, the price has fluctuated between $10 and $15 until rumors arose about the sale of the land in the Other Side metaverse.

Historical hourly APE price since inception. Source: CoinGecko
The chart above shows that the APE is up almost 24% on the day from $13.16 to $16.30. When rumors about Otherdeed surfaced on Twitter on April 20, APE’s price rose to $26 on April 28, after OthersideMeta officially confirmed the sale two days earlier.

Average price of MAYC and BAYC, volume before embossing. Source: open sea
The price of non-fungible tokens (NFTs) of Yuga Lab’s Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) also followed a similar pattern on April 20. MAYC hit an all-time high of 43 Ether (ETH). In April. On December 26th, when the sale was confirmed, BAYC started to rally from a low of 105 ETH to a new all-time high of 168 ETH on May 1st.

Chaos ensued when Yuga confused users while selling Otherdeed.
Otherdeed was seen as an opportunity for new investors banned from BAYC, MAYC and BAKC to become part of the Ape community.

The bullish belief in APE has been driven by the fact that it is the only currency in the Otherside metaverse and property sales in the secondary market will be in APE alongside ETH.

Investors who believed in Yuga Labs and the idea of ​​the Otherside metaverse rushed to acquire APE in preparation for the Mint at a price of 305 APE per lot. The growing demand for APE at the time of minting was generally expected, and pre-minting price increases were also foreseeable.

What later came as a shock was how chaotic the whole process of creating Otherdeeds was. The price of APE fell from $24 to $14 on May 2nd, reflecting a drop of over 40% in two days! The immediate drop in price to $20 per minting day can be attributed to the sudden drop in demand for APE after minting began.

Another 30% drop over the next two days clearly reflects investors’ loss of confidence in the project following the Mint debacle. The price of BAYC and MAYC also reflected the same sentiment, falling more than the market value of airborne Otherdeed.

Despite the Otherside team’s efforts to screen new investors through the know-your-customer (KYC) process prior to minting and to offer a fixed-price sale, these measures were not enough to prevent a gas war. The information was unclear and sometimes completely wrong before the mint, and a significant sum of money was misused and burned for gasoline due to poor communication on the part of Yuga Labs.

Below are some of the key issues investors face on Mint Day.

What happened to the Dutch auction?
On April 26, OthersideMeta tweeted that the coin would be an auction in the Netherlands, but changed their mind three days later, saying “Dutch auctions really suck,” a complete reversal and a brutal slap in the face to investors.

The Dutch auction would have been an effective way to mitigate the effects of the gas wars due to its unique design, with a very high initial price and a decreasing price over time. Investors could choose to mint coins at whatever price they can afford at different times and avoid minting all coins

Source: CoinTelegraph

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