- The demand for the tokens caused transaction or gas fees on the Ethereum network to skyrocket
- buyers spent approximately four times the cost of the NFTs on gas
- high cost and unequal distribution of NFTs were not ideal
TIME magazine’s non fungible token drop on the OpenSea marketplace has sent transaction fees on Ethereum soaring sky-high. Each of the 4,676 NFTs in the TIMEPiece collection was valued at 0.1 ETH, or almost $313.
When the tokens were first made available for purchase, they sold out in a matter of minutes. The NFTs were sold out in less than two minutes, according to TIME President Keith Grossman, with 1,294 distinct wallets.
High demand caused gas fee up
The demand for the tokens caused transaction or gas fees on the Ethereum network to skyrocket, with one buyer paying 22.59 ETH ($70,198.65) for a single TIMEpiece NFT.
According to a data tracker from Banterlytics, buyers spent approximately four times the cost of the NFTs on gas.
In the 24 hours trading session, Ethereum was trading 6.41% low at $2,914.31 at the time of writing. According to CoinMarketCap, the average ETH transaction fee was $24.03.
According to CoinDesk, citing Etherscan data, TIME’s strategy to sell the NFTs at a specified time resulted in scalping, with 100 addresses owning around 24% of the total quantity of the digital art.
Despite the fact that the collection only pointed to a red TIME logo, customers were reportedly unsure of the precise paintings they were purchasing.
According to CoinDesk, Grossman stated that the high cost and unequal distribution of NFTs were not ideal.
Grossman thinks he learnt a lot about gas in general. In the gas space, there are some things you can’t control. TIME’s president told CoinDesk that the next time the magazine sells NFTs, they’ll make sure anything that we’ve observed that went wrong or didn’t go as planned gets corrected.
A fast-rising NFT project called “Cool Cats” announced a collaboration with TIME magazine last month. Grossman’s assistance was important in the creation of the NFT project’s relationship with the publication.
Axie Infinity, Art Blocks, Crypto Punks, and Bored Ape Yacht Club are among the top NFT projects by sales volume recently.