NFTs are volatile: Otherdeeds virtual land sale

Many purchasers of Otherdeeds, the virtual land that sparked a buying frenzy last weekend and led to skyrocketing transaction fees on Ethereum, are underwater as prices dropped after the initial euphoria wore off.

Yuga Labs, the creator of the popular Bored Apes Yacht Club collection of NFTs, helped raise approximately $320 million on Saturday from a sale of Ethereum-based Otherdeeds NFTs, making it the biggest sale of its kind. Each purchaser paid $5,800 per NFT, plus as much as $6,000 in transaction costs or “gas fees,” which together added up to a total of roughly 4.21 Ether at current prices.

Buyers, earlier today, could pay as little as 3.6 Ether for these NFTs on OpenSea, the world’s biggest NFT marketplace. Many buyers selling their NFTs at that price could lose $1,700 per transaction.

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“I think the Otherdeeds sale was botched, leading to user backlash,” said Aaron Brown, a crypto investor who writes for Bloomberg Opinion. “It remains to be seen whether it can recover user trust and enthusiasm.”

The drop has also prompted backlash from Twitter fans who had snapped up the NFTs.

The NFT market is volatile. NFT transactions in Decentraland, a platform where users can buy and sell virtual plots of land, are down 37% over the last 30 days, according to tracker DappRadar.

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