Yuga Labs Burns Nearly $1M Worth of Ethereum Gaming NFTs—Here’s Why

Yoga Labs, the startup behind it Boring Monkey Boat Club (BAYC) announced the completion early Thursday Burning 4,295 Ethereum NFTs related to crypto game HV-MTL.

This will come the next day. Yuga Labs sold the two game IPs To blockchain game studio Faraway—HV-MTL was one of those IPs. with far away Now in charge, game studio he asked That Yuga Labs will burn nearly $1 million worth of HV-MTL NFTs.

“Burning” refers to the act of sending crypto assets to an irretrievable address by actually destroying them. A total supply of 30,000 HV-MTL NFTsThis burn accounts for 14 percent of the total supply—which many hope will cut the total supply and increase the value of the collection.

according to NFT floor priceAs news of the purchase broke on Wednesday, the floor price of HV-MTL – or the cheapest listed NFT on the market – fell by 16 percent in trading volume. Then in the following hours, when Yuga Labs-owned NFTs burned, the floor price jumped 31% to a floor price of 0.064 ETH.

That's still an ocean drop from the March 2023 high of 2.069 ETH (or $3,470). However, at Wednesday's high of about $224 in ETH price, the burn is estimated to be slightly higher than $962,000 and could be higher, as some NFTs may have features that could command prices higher than the floor.

HV-MTL Forge It's a crafting game that requires players to create habitats and maintain the health of their HV mechs. You must own HV-MTL NFT to play the game, but the Official website “People who don't have it will have a chance to try a specific version of Forge,” he says. This version does not appear to be publicly available at this time.

Now in Faraway's hands, the game is expected to undergo some changes. “HV-MTL and Legends of the Mara,” when we take charge of Faraway He said on his Twitter page.“Our immediate goal is to drive as many facilities as possible to the major NFTs that comprise these clusters.”

For HV-MTL, the first step is a New points system It allows players to earn rewards by participating in “new activations with functionality” on the Faraway network.

Edited by Andrew Hayward.