Yuga Labs, the startup behind the Bored Ape Yacht Club (BAYC), announced early Thursday that it has acquired the burn of 4,295 Ethereum NFTs related to the crypto game HV-MTL.
This comes the next day Yuga Labs has sold two of its gaming IPs to blockchain gaming studio Faraway: HV-MTL was one of these IPs. Of Far away now in charge, the gaming studio requested that Yuga Labs is burning the nearly $1 million in HV-MTL NFTs it held.
“Burning” crypto assets refers to sending them to an address where they cannot be recovered, effectively destroying them. With a total supply of 30,000 HV-MTL NFTsthis burning accounts for 14% of the total supply – which many hoped would increase the price of the collection by reducing the total supply.
According to NFT floor priceWhen news of the acquisition broke on Wednesday, the floor price – or the price of the cheapest listed NFT on a marketplace – of HV-MTL fell 16%, with a significant increase in trading volume. Then, over the next few hours, as Yuga Labs’ NFTs were burned, the floor price rose 31% to a floor price of 0.064 ETH.
Faraway asked us to burn Yuga Labs’ 4,295 HV-MTL NFTs, to ensure a permanent reduction in supply. This is now completed. Check out our blog for more information: https://t.co/oRGO0bI6Py.
— Yuga Labs Gaming (@yugalabsgaming) April 17, 2024
That’s still a drop in the bucket compared to the collection’s all-time high price of 2,069 ETH (or $3,470) in March 2023. Still, the burn at Wednesday’s peak price of around $224 worth of ETH would be at a minimum are appreciated. of $962,000 and potentially higher, as some of the NFTs may have had properties that allowed them to fetch higher prices than the floor.
HV-MTL forge is a crafting game where gamers must create a habitat and maintain the health of their HV mechs. You must own a HV-MTL NFT to play the game, but the official website says that “non-holders will have the opportunity to try out a limited version of Forge.” This version does not appear to be publicly available at this time.
Now that the game is in Faraway’s hands, it is expected that some changes will take place. “While we take charge of HV-MTL and Legends of the Mara,” Faraway said in a tweet“our immediate goal is to generate as much utility as possible for the primary NFTs that make up these collections.”
For HV-MTL, the first step was the introduction of a new points system which allows players to earn rewards by participating in “new activations with interoperability” within the Faraway network.
Edited by Andrew Hayward