DeGods Community Divided on Memecoin Pivot - Is This the End of Frank’s Chain-Hopping?

DeGods, y00ts, and $DUST holders subject themselves to another paradigm shift. Mere months after bridging back to Solana after finding a temporary home on Ethereum, the chain-hopping ecosystem is experimenting with a novel dynamic.

In the space of 24 hours, the deLabs ecosystem unveiled and rolled out its plan to simplify onboarding and expand DeGods reach beyond anything the team had tried before.

DeGods, y00ts, $DUST Become $degod

On September 15, deLabs founder Rohun ‘Frank’ Vora announced a new growth strategy in the DeGods HQ Telegram group. Asserting that he’d “always believed degods as a coin would be bigger than everything”, Frank unveiled the ecosystem’s next move.

All DeGods and y00ts NFTs, as well as the ecosystem’s native token $DUST, can now be burnt in exchange for $degod, a new memecoin designed to make DeGods onboarding as seamless as possible.

Leveraging the hybrid 404 token model, DeGod NFTs can be bi-directionally swapped for 550,000 $degod tokens, subject to a 3.33% royalty fee. Meanwhile, y00ts NFTs and $DUST tokens can only be permanently burnt in exchange for $degod.

The change comes following a belief that the deLabs ecosystem had become too fragmented, with y00ts NFTs and $DUST drawing attention and liquidity away from DeGods, the group’s central pillar.

By switching to a hybrid memecoin-NFT format, the founding team aims to make joining the DeGods community more accessible. Previously, the NFT’s floor price presented a significant barrier to entry. Under the new design, DeGod supporters can now be a part of the internet community at any level of investment.

Partnering with the SolSniper NFT marketplace, the $degod launch and exchange mechanic also served as a debut for the platform’s new Floor Pool. 

SolSniper’s new feature allows holders to instantly exchange their DeGod for any other NFT in the pool, making collecting specific traits or NFTs easier.

$degod Launch Sniped, But Stable

Unsurprisingly, the $degod launch was a hot target for the Solana’s token snipers, with early buyers allegedly profiting over 1,118 SOL in the space of a second. 

On the other hand, inefficient snipers suffered devastating losses, with one trader losing just under $300k on poorly timed swaps.

Detractors were quick to label the launch a failure. However, while the launch initially looked disastrous, $degod has found plenty of support and demand. Based on Dexscreener data, $degod is up 10.53% since launch and boasts over 29k holders. 

Community Divided as Grail Collectors Suffer

While the move has certainly improved DeGod accessibility, many community members and collectors have expressed frustration regarding the perceived value of NFT rarity. Now that all DeGod NFTs can be instantly swapped for 550,000 $degod, rare NFTs now have no tangible added value.

Commentators on social media highlighted how collectors and 1/1 NFT buyers have been burned badly by the changes, with some holders paying a premium for rare pieces that are now arguably worth the same as any other NFT in the collection.

The deLabs team has been criticized for not providing a two-way exchange for the y00ts NFT collection. Unlike DeGods, any y00ts swapped for $degod will be permanently burned and removed from the collection.

In response to holders’ concerns, Frank released a statement highlighting how rewarding rarity in the new model ‘sacrifices simplicity.’ 

Prior to the announcement, DeGods and y00ts NFTs were valued at approximately 25 SOL ($3,286 USD) and 4.9 SOL ($644 USD) respectively. Since the announcement and launch of $degod, one DeGod (or 550k $degod) currently trades at roughly $4,200, while one y00t (or 120k $degod) is valued at $920. 

These moves represent a 27% increase in the value of one DeGod, and a 42% increase in the value of one y00t,suggesting the market views the changes as a positive catalyst for future growth.

Other OG Solana NFT collections are now considering joining the movement. Cets, a formerly notorious Solana NFT collection that peaked at over 100 SOL have teased that they may be following DeGods' lead.

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