Gremplin, the pseudonymous creator of CrypToadz, has introduced a new burn-to-redeem model for NFT minting that has sparked controversy in the NFT community. The model requires collectors to destroy a single Nakamigos NFT in order to qualify for the drop of 69 ‘An Eye for a Fry’ NFTs. This unprecedented approach saw the Nakamigos floor price rise by approximately 15% in just two hours, while the ‘Fry Harvesters’ floor price currently sits at 0.81 ETH, slightly higher than the Nakamigos floor price of 0.725 ETH.
Some community members have highlighted the cultural significance of the Nakamigos collection, which has generated a trading volume of 26,246 ETH, or $49.5 million, within less than 20 days. The project has been utilized by three major artists in the past week due to its versatility in gaming, advertising, social media, and merchandise collaborations.
However, concerns have been raised regarding the potential impact of the burn-to-redeem model on reputable collections. The fear is that burning valuable NFTs to mint unassociated collectibles could devalue and destabilize established projects. The implications of this new model for the NFT space as a whole are uncertain and only time will tell its true impact.