• DeGods’ token skyrocketed to a market cap of $330 million, solely to fall to $70 million inside hours.
• Liquidity sniping and fraud plagued DEGOD’s launch, inflicting big losses for merchants.
• Yuga Labs is resisting the rising development of NFT-token conversions and refusing to tokenize BAYC NFTs.

Yuga Labs stays adamant about changing Bored Ape Yacht Membership (BAYC) NFTs into tokens regardless of the challenges the latest launch of the DeGods token has confronted. The DeGods token skyrocketed to a market cap of $330 million earlier than crashing, inflicting heavy losses for some buyers and paving the way in which for scammers who made off with $150,000.

Yuga Labs co-founder rejects tokenization

Yuga Labs co-founder Wiley Aronow (aka Gordon Gonner) reiterated his opposition to the tokenization of BAYC belongings, emphasizing the significance of sustaining their authenticity. His feedback come because the conversion of NFTs to tokens turns into extra common, with tasks similar to DeGods adopting the technique.

Reda additionally introduced plans for Yuga Labs to associate with artist Nina Chanel on an airdrop.

The launch of the DeGods token was hit by turmoil after it misplaced 75% of its worth, sparking debate inside the NFT and cryptocurrency communities. DeGods creators expressed frustration with the token's risky efficiency and acknowledged the harmful influence of liquidity snipers. Within the case of DEGOD, roughly 1% of the overall provide was shortly snipped, inflicting a brief value rise and subsequent crash. The token briefly soared to a market cap of $330 million, solely to plummet to $70 million after a sell-off.

Changing NFTs to tokens makes DeGods much less distinctive

The DeGods group initially offered 3% of the DEGOD provide by means of a reduced bonding curve to make sure liquidity, however this shortly offered out. Holders of DeGods NFTs have the choice to transform their NFTs into tokens, with one DeGod NFT changing to $550,000 DEGOD and one y00t NFT changing to $120,000 DEGOD.

Nonetheless, the transfer has drawn criticism. Some merchants argue that the transition from NFTs to tokens dilutes DeGods' distinctive worth proposition, and others are sad with the choice to burn y00ts and Mud within the course of. Scammers have additionally exploited the launch, creating pretend DEGOD tokens to steal $150,000, igniting controversy.

Whereas DeGods tokens are nonetheless tradable, their future stays unclear because the group grapples with each the potential advantages and dangers of tokenization. Yuga Labs’ stance in opposition to the NFT-to-token conversion development demonstrates the corporate’s dedication to the way forward for its authentic collectibles.