Yuga Labs Burns 14% of HV-MTL Supply After Faraway Acquisition

Recently, Yuga Labs, the creator of the popular Bored Ape Yacht Club (BAYC), made a major move by burning 4,295 HV-MTL NFTs. This decision was made in response to the acquisition of two gaming IPs from Yuga Labs by the blockchain gaming studio Faraway. 

What Led to the Burning of HV-MTL NFTs?

In a surprising move, Yuga Labs announced that they would be burning 4,295 HV-MTL NFTs. This represents 14% of the total supply of HV-MTL NFTs, reducing the overall supply from 30,000 to 25,705. While this may seem like a drastic move, it was done with the intention of increasing the value of the remaining NFTs in the collection.

With fewer NFTs available, there is a higher demand for them and their value is expected to increase. This is a common strategy used in the world of traditional finance, known as “burning tokens“. By reducing the supply, companies can create scarcity and drive up demand for their assets.

Impact on Bored Ape Yacht Club and HV-MTL Forge

As the creator of BAYC, Yuga Labs holds a significant amount of HV-MTL NFTs. With the burning of these NFTs, the company has shown its commitment to increasing the value and utility of their remaining NFTs. This move has not only affected HV-MTL but also had an impact on BAYC as well.

The floor price of HV-MTL NFTs initially dropped by 16% after the announcement of the acquisition and subsequent burn. However, this was quickly followed by a 31% increase in value to 0.064 ETH after the Yuga Labs-owned NFTs were burned. This shows that there is still high demand for these NFTs and their value is expected to continue rising.

In addition, the burning of these HV-MTL NFTs has also had an impact on HV-MTL Forge, a crafting game that requires ownership of an HV-MTL NFT to fully participate. With the reduction in total supply, these NFTs have become even more exclusive and valuable within the game.

What’s Next for HV-MTL?

Under new management by Faraway, HV-MTL is expected to undergo changes aimed at increasing utility for their primary NFTs. The studio has introduced a new points system that allows players to earn rewards through various activities, promoting interoperability within Faraway’s network.

This move aligns with the overall goal of creating a more dynamic and engaging gaming experience for HV-MTL NFT holders. With the acquisition of Yuga Labs’ gaming IPs, Faraway is set to bring new features and updates to the game, making it even more attractive to players.

Conclusion

The burning of 4,295 HV-MTL NFTs by Yuga Labs is a significant move that will have a lasting impact on both BAYC and HV-MTL Forge. With this decision, we can expect to see an increase in value and demand for remaining HV-MTL NFTs, as well as new developments and enhancements for HV-MTL Forge under Faraway’s management. 

As the world of NFTs continues to evolve, it will be interesting to see how this move shapes the future of both BAYC and HV-MTL. So, if you are a fan or investor of either project, keep an eye out for updates and developments in the coming months.