Recently, Yuga Labs, the maker of the popular Bored Ape Yacht Club (BAYC), took a big step by burning 4,295 HV-MTL NFTs. This decision was made in response to the blockchain’s acquisition of two gaming IPs from Yuga Labs gaming studio Faraway.
What led to the burning of HV-MTL NFTs?
In a surprising move, Yuga Labs announced that they would be burning 4,295 HV-MTL NFTs. This represents 14% of the total supply HV-MTL NFTs, causing total supply to drop from 30,000 to 25,705. While this may seem like a drastic move, it was done with the intention of increasing the value of the remaining NFTs in the collection.
With fewer NFTs available, they are in greater demand and their value is expected to rise. This is a common strategy used in the world of traditional finance known as ‘burning tokens“. By reducing supply, companies can create scarcity and increase demand for their assets.
Impact on Bored Ape Yacht Club and HV-MTL Forge
As the creator of BAYC, Yuga Labs has a significant number of HV-MTL NFTs. By burning these NFTs, the company has demonstrated its commitment to increasing the value and utility of the remaining NFTs. This move has not only affected HV-MTL, but also BAYC.
The floor price of HV-MTL NFTs initially fell 16% after the acquisition announcement and subsequent burn. However, this was quickly followed by a 31% increase in value to 0.064 ETH after Yuga Labs’ NFTs were burned. This shows that there is still a high demand for these NFTs and their value is expected to continue to rise.
Additionally, the burning of these HV-MTL NFTs has also impacted HV-MTL Forge, a crafting game that requires an HV-MTL NFT to fully participate. With the reduction in overall supply, these NFTs have become even more exclusive and valuable in the game.
What is the future for HV-MTL?
Under new management from Faraway, HV-MTL is expected to undergo changes aimed at increasing the utility of their primary NFTs. The studio has introduced a new points system that allows players to earn rewards through various activities, furthering interoperability across Faraway’s network.
This move aligns with the overall goal of creating a more dynamic and engaging gaming experience for HV-MTL NFT holders. With the acquisition of Yuga Labs’ gaming IPs, Faraway will add new features and updates to the game, making it even more attractive to players.
Conclusion
The burning of 4,295 HV-MTL NFTs by Yuga Labs is a significant step that will have a lasting impact on both BAYC and HV-MTL Forge. With this decision, we can expect an increase in value and demand for the remaining HV-MTL NFTs, as well as new developments and improvements for HV-MTL Forge under Faraway’s management.
As the world of NFTs continues to evolve, it will be interesting to see how this move shapes the future of both BAYC and HV-MTL. So if you’re a fan or investor of either project, keep an eye out for updates and developments in the coming months.