Cryptocurrency Venture Yuga Labs Crashes Ethereum Network

    Photo: Reuters [via The Guardian]

    The Facts

    • Cryptocurrency project Yuga Labs, creator of the popular Bored Ape Yacht Club non-fungible token (NFT) series, is apologizing after its online offerings temporarily overwhelmed the Ethereum blockchain network.

    • The online sale, which took place on Sun., was for NFTs called "Otherdeeds," which are linked to virtual real estate being offered as part of a forthcoming multiplayer game called "Otherside."

    The Spin

    Narrative A

    Like so much that passes for "innovation" in the decentralized finance (DeFi) economy, the "creators" and innovators themselves often make out like bandits while everyone else is left to suffer the consequences for their self-interest and short-sightedness.

    Narrative B

    Web3 and DeFi projects show enormous potential to revolutionize the economy. These kinds of "flash crashes" are nothing more than hiccups. In fact, users are already proposing new solutions to prevent these growing pains from happening again.

    Cynical narrative

    There's zero accountability when these DeFi ventures stumble or fail. The anonymous "founders" can simply apologize and then point to the decentralized autonomous organization (DAO) to fix the problem. That's exactly what happened here: the founders asked the DAO to consider migrating ApeCoin to its own chain.

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