Cryptocurrency is not an investment for the faint of heart. But the addition of asset categories like NFTs – nonfungible tokens – and metaverse projects has made things even more unpredictable. Over the weekend, a digital “land grab” severely rattled Ethereum – one of the world’s major crypto platforms.
Tech expert Omar Gallaga says speculation over a new metaverse offering from Bored Ape resulted in high transaction fees – also called gas fees – for buyers of the virtual goods.
Highlights from this segment:
– A metaverse project involves creating virtual online worlds where investors can buy spaces where NFTs can exist. The NFTs can be virtual characters or objects.
– The Bored Ape Yacht Club is among the largest NFT projects. The sale last week was a spinoff of Bored Ape called Other Deeds. Owning a deed allows the buyer to claim land in a metaverse called the Other Side.
– Because of intense speculation during the sale, buyers ran up $176 million in gas fees, destabilizing the Ethereum platform.