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Yuga Labs Completes Burn of 4,295 HV-MTL NFTs
Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC), recently declared that they have finalized the burn of 4,295 Ethereum-based NFTs linked to the HV-MTL crypto game. This decision followed the sale of two gaming intellectual properties (IPs) to Faraway, a blockchain gaming studio, with HV-MTL being one of the IPs divested. Upon assuming control of the IPs, Faraway urged Yuga Labs to discard nearly $1 million worth of HV-MTL NFTs it possessed.
The term “burning” in the context of cryptocurrencies denotes the irreversible transfer of assets to an address where they become inaccessible, essentially eliminating them. The total supply of HV-MTL NFTs stands at 30,000 units, with the burn encompassing 14% of the total supply. This reduction is anticipated to heighten the collection’s market value by curtailing the overall supply volume.
Market Response and Price Dynamics
Following the news of the IP acquisition on the preceding day, the floor price of HV-MTL plummeted by 16% alongside a notable escalation in trading volume. Subsequently, as Yuga Labs executed the burning of the NFTs under its ownership, the floor price surged by 31% to reach 0.064 ETH, according to data from NFT Floor Price.
Faraway requested the incineration of the 4,295 HV-MTL NFTs held by Yuga Labs to ensure a permanent reduction in supply. This directive has been duly carried out. For more details, refer to our blog: https://t.co/oRGO0bI6Py.
— Yuga Labs Gaming (@yugalabsgaming) April 17, 2024
Despite the recent price spike, the current floor price remains substantially lower than the collection’s peak valuation of 2.069 ETH (approximately $3,470) recorded in March 2023. At its height on Wednesday, the potential value of the burn stood at a minimum of $962,000 based on a conservative price estimate of around $224 per ETH. Notably, certain NFTs within the collection could command premium prices due to unique traits, further amplifying the overall valuation.
Future of HV-MTL Forge Under Faraway
HV-MTL Forge, the crafting game associated with the HV-MTL NFTs, tasks players with constructing habitats and preserving the well-being of their HV mechs. Ownership of a HV-MTL NFT is a prerequisite for participating in the game. However, the official HV-MTL Forge website hints at a potential limited version accessible to non-NFT holders, although this feature is presently unavailable.
With Faraway now at the helm, significant modifications are anticipated for the game. In a recent tweet, Faraway expressed its commitment to maximizing the utility of the primary NFTs constituting the HV-MTL and Legends of the Mara collections. The initial strategic move involved the introduction of a novel points system enabling players to accrue rewards through engaging in new activities with cross-operability on the Faraway network.
The transformation under Faraway’s stewardship underscores a shift towards enhancing user engagement, fostering incentive structures, and optimizing the gameplay experience for participants within the HV-MTL gaming ecosystem.
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