- DeGods’ token surged to a $330M market cap, then dropped to $70M within hours.
- Liquidity snipers and scams plagued the DEGOD launch, causing massive trader losses.
- Yuga Labs refuses to tokenize BAYC NFTs, resisting the growing NFT-token conversion trend.
Yuga Labs is taking a firm stance against converting its Bored Ape Yacht Club (BAYC) NFTs to tokens, even as the recent DeGods token launch faces challenges. The DeGods token soared to a $330 million market cap before crashing, leaving some investors with significant losses and opening the door for scammers who made off with $150,000.
Yuga Labs Co-Founder Rejects Tokenization
Yuga Labs co-founder Wylie Aronow, also known as Gordon Goner, reiterated his opposition to tokenizing BAYC assets, emphasizing the importance of maintaining their authenticity. His comments come as NFT-to-token conversions gain popularity, with projects like DeGods embracing this strategy.
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The DeGods token launch encountered turbulence after losing 75% of its value, sparking debate within the NFT and crypto communities. DeGods’ creator expressed frustration over the token’s volatile performance, acknowledging the disruptive impact of liquidity snipers. In the DEGOD case, approximately 1% of the total supply was quickly sniped, causing a brief price surge followed by a sharp decline. The token briefly skyrocketed to a $330 million market cap, only to plummet back to $70 million after a sell-off.
NFT-to-Token Conversion Dilutes DeGods’ Uniqueness
The DeGods team initially sold 3% of the DEGOD supply through a discounted bonding curve to seed liquidity, which sold out quickly. Holders of DeGods NFTs had the option to convert their NFTs to tokens, with 1 DeGod NFT redeeming 550,000 $DEGOD and 1 y00t NFT converting to 120,000 $DEGOD.
However, this move has drawn criticism. Some traders argued that shifting from NFTs to tokens dilutes DeGods’ unique value proposition, while others are unhappy about the decision to burn y00ts and Dust in the process. A scammer also exploited the launch, creating a fake DEGOD token and stealing $150,000, further fueling the controversy.
With the DeGods token still up for trading, its future remains uncertain. The community is grappling with both the potential benefits and risks of tokenization. Yuga Labs’ stance against the NFT-to-token conversion trend shows its commitment to the future of its original collection.
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