News
03
May
crypto news

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News Summary 5/3: Otherdeed, Finland, Central African Republic, Solana, Crypto.Com

Otherdeed’s NFT mint brought the Ethereum network to its knees. Bitcoins owned by the Finnish Customs are being sold, and a significant amount of the euros are being sent to support Ukraine. Finnish company AV-Online uses bitcoins as collateral for a loan. The Central African Republic introduced Bitcoin as an official means of payment. Solana’s network crashed and Crypto.com got investors angry.

Otherdeed NFT mint caused chaos on Ethereum

The biggest event of last weekend was Otherdeed – the NFT minting of the Otherside game developed by Yuga Labs. This is also the company behind the super popular Bored Ape Yacht Club NFT collection.

Yuga Labs has a hand in Apecoin too, which was released a few months ago. This token has been the best performer of the top 100 cryptocurrencies for two weeks. The reason is Otherdeed, as the NFT minting was only possible with Apecoins. Minting is basically generating an NFT.

Otherdeed is an NFT related to a game called Otherside. More specifically, it’s a piece of virtual land in Otherside. There are 100,000 Otherdeeds created. You can check out the collection in more detail at OpenSea.

otherdeed

Each Otherdeed has certain special features and resources. Apparently, the owner of an Otherdeed can mine these resources in Otherside and earn cryptocurrency. So far, there are still a lot of question marks in the air because Otherside is still in the development phase.

The Otherdeed mint caused an extraordinary rush. Thousands and thousands of investors tried to get their NFTs minted before others. Naturally, this led to the Ethereum network being clogged. Transaction fees were in the thousands of dollars at worst.

The end result was that many investors were left empty-handed. In the worst case, they also lost a large amount of Ether due to abandoned transactions. On top of that, to get into the queue, people had to complete a KYC and buy at least 305 Apecoin.

The Defiant channel has published a good overview of what happened.

It was a historically popular NFT mint with a very large margin. According to Yuga Labs, even the Ethereum network explorer site Etherscan crashed. The release of the Otherdeed collection also helped the OpenSea trading platform to a new record. A whopping $476 million worth of NFT trades was made last Sunday.

A large number of high transaction fees also led to the burning of nearly 56,000 ETH tokens, worth around $157 million. Over 2.2 million ETH have been burned since last autumn’s EIP-1559 update. The more traffic on the network, the more Ether is destroyed.

As expected, the price of Apecoin plummeted after the minting. It has fallen from Saturday’s ~$27 by almost 50%. However, it is worth noting the massive interest in the Otherside game. Apecoin will be used as in-game currency.

It should also be clear that Otherside will not run on Ethereum. We are likely to see a similar solution as in Axie Infinity and the Ronin blockchain. The idea is to build a separate Ethereum sidechain for Otherside.

Finnish Customs sells its bitcoins to support Ukraine

Finnish Customs is certainly the best-known Bitcoin holder in Finland. It is also one of the largest Bitcoin whales in Finland, as it is holding nearly 2,000 bitcoins worth over €70 million. Most of the bitcoins originate from seizures made years ago.

Finnish Customs has had an intention to sell the bitcoins since 2018 already.  In January 2021, it was announced that bitcoins “will be sold in the coming months”. So far, the wheels of bureaucracy have been rolling slowly. This has been a good thing for Finns!

Things are about to change, though. Helsingin Sanomat reported last week that bitcoins will be put up for sale. A significant part of the profits (more than half) will be donated to Ukraine.

Legal reasons prevent a direct transfer of bitcoins to Ukraine. Therefore, they must first be sold in euros. Finnish Customs announced on Thursday last week that it had chosen Coinmotion and Tesseract to carry out the operation. The bitcoins are expected to be sold during the early summer.

The announcement sparked a huge debate on social media. Many people questioned the selling of bitcoins. Rather, they should be transferred to the balance sheet of the country (or the bank of Finland) and ban the sale for 10 years. After that, the value of bitcoins would bring Finns a whole different level of wealth. Ukraine could also have been supported with existing euros.

Apparently, the situation is that the transfer of bitcoins to the balance sheet has never even been considered. Therefore, bitcoins would have been sold anyway. We will continue to follow with great interest to see whether this process, which has been going on for years, will now be brought to a conclusion.

Central African Republic adopts Bitcoin as legal tender

Central African Republic is in the news for the second week in a row. This is due to a slight confusion in the news stream. We reported a week ago that the country would not follow El Salvador’s path, despite rumors. However, the situation changed a couple of days later.

All major news sites reported late last week that the Central African Republic has adopted Bitcoin as its official currency alongside the CFA franc. The new law was widely reported on Wednesday.

The case seems very different from the one a year ago when President Bukele made a similar announcement. El Salvador had prepared for the process carefully and cooperated with Jack Mallers and Strike. The Central African Republic’s decision seems to have come as a surprise to everyone – even to The Bank of Central African States.

This is the central bank of the six countries that use the CFA franc as their currency. According to Bloomberg, the bank was not aware of the introduction of the Bitcoin law. There is still very little information available in general. The French language used in the Central African Republic is also a limitation.

If El Salvador was an unknown country for many, Central African Republic is even more obscure. Many doubt the country’s ability to adopt Bitcoin law. It is one of the poorest countries in the world with just 11% of its citizens connected to the internet.

We continue to monitor the situation and report further from the heart of Africa as more information on the Bitcoin law becomes available. In any case, the Bitcoin revolution has taken another step forward.

Solana crashed and Crypto.com angered investors

Finally, two more news items, one related to Solana and another to Crypto.com.

Solana is one of the largest smart contract platforms and is also marketed as the fastest blockchain. Solana’s technology has brought many challenges to the project. Its blockchain has suffered several outages over the past year.

Such was the case last Saturday when the network went down due to the Candy Machine app. It is an NFT mint application. Bots started bombarding the Candy Machine creating up to four million transactions per second.

Network validators had to organize a reboot on Solana’s Discord channel. The outage lasted seven hours. In September last year, Solana was down for as long as 17 hours.

Solana’s SOL token briefly plummeted by around 10%, but the price quickly recovered.

Crypto.com, on the other hand, is known for its Visa cards. They are also very popular in Nordic countries as is Crypto.com’s mobile app. Yesterday, the company published updates to the cashback percentages and benefits of Visa cards. Read more about the changes on the Crypto.com blog.

Cashback percentages fall for all levels of cards. The previous levels of 1%, 2%, 3%, 5%, and 8% are now 0%, 0.5%, 1.5%, 3%, and 5%. In addition, the cashback on the Ruby level will be limited to $25 and the cashback on the Jade level to $50.

The change means that you will no longer get any cashback with the free card. The Ruby card, which requires a €350 stake, and the Jade, which requires a €3500 stake, also became very weak for many due to the percentage drops and dollar limits.

Crypto.com’s CRO token collapsed by around 15% yesterday. About half of the drop has since been filled.

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