MekaVerse NFT: Following Its Meteoric Rise and Fall

Within 24 hours of launch, the MekaVerse NFT project had minted over $60 million in sales. However, despite its phenomenal first day, MekaVerse has been one of the most controversial non-fungible tokens (NFT) in recent times.

Soon after it entered the market, the MekaVerse NFT project was dogged by allegations of data leaks and possible fraudulent activities that compromised the legitimate ownership of certain rare NFTs.  

So, did MekaVerse experience an NFT bubble? Will it ever recover from its floor price collapse? Was there foul play around the distribution of its NFTs?

Read on, as we explore the dynamics and controversy around the MekaVerse NFT project.

What Is MekaVerse NFT?

Launched in October 2021, MekaVerse is a collection of 8,888 algorithmically generated 3D warrior robots, each with unique artistic attributes. The NFTs, known as Mekas, are based on the Japanese anime franchise, Gundam, consisting of Gundam-style virtual military robots ‘’mechas’’ that need Drivers (human pilots) to operate.

Each NFT in the MekaVerse collection is built on the Ethereum blockchain and has unique features for individual assets. Similar to Bored Ape Yacht Club and World of Women NFTs, the Mekas are categorized as NFT profile pics (PFPs) and can be used as avatars on an owner’s social media profile. Mekas are created using custom generative minting which gives each NFT a distinct, randomized look complete with its own color palette.

MekaVerse generated a lot of hype prior to its launch, especially on social media where it had over 200,000 Twitter followers and 230,000 members on its Discord. The project was one of the most anticipated NFT drops of 2021 with the MekaVerse community of NFT art lovers and Japanese manga culture enthusiasts driving the hype.

Source: MekaVerse Twitter

Who's Behind Mekaverse?

MekaVerse was conceptualized by European graphic designers, Matthieu Braccini and Mattey. The duo, alongside a small team, formed MekaLabs in September 2021 and hit the ground running on the ambitious MekaVerse project. 

The pair had always been interested in Japan and its anime culture. After traversing Asia for five months, the duo then got inspired to design the Gundam-like Mekas. 

MekaVerse NFT Ecosystem

From the onset, the MekaVerse team had an ambitious vision to create original 3D digital assets that would stand out in the crowded NFT jungle. The main focus of the MekaVerse is the Meka collection which is categorized into four factions. 

• Original Mekas (OG) – These are the largest faction in the MekaVerse collection with over 4,500 unique NFTs. They are distinguished by their stoic features and heavily armored equipment.

• Mirage (MI) – Best known for their speed, accuracy, and efficiency, the MI Mekas have sleek and modern features. 

• Gadians (GAI) – Fitted with wide Asian-style conical hats, they possess a calm and mysterious appearance.

• F-Nine (F9) – The F9 Mekas are the rarest of the collection and are easily identified by their round helmets and intricate body armor.   

Despite the FUD around the project, MekaVerse has launched another NFT collection, Meka-Bots, and intends to expand the MekaVerse ecosystem. The MekaVerse roadmap includes fully playable Meka-Driver NFTs, mythical Meka sword NFTs, MekaVerse merchandise, a Meka interactive adventure map and Meka-inspired short films. MekaVerse has also partnered with gaming company Manticore Games to develop a gaming and chatting space called the Meka-Citadel.

Source: CoreGames Twitter

MekaVerse NFT and Raffle Drop

The MekaVerse launch was highly anticipated with the community building hype around the much-awaited unique Mekas. The team’s priority was to introduce unique artwork with the potential to evolve into more exciting possibilities including combining Mekas or growing a Meka into a Super-Meka.  

The MekaVerse Raffle

To promote fairness and secure the minting process, the team opted for a raffle drop which combined the elements of airdrop and raffle competition. The first raffle was launched on Oct 6, 2021. According to MekaVerse, 172,876 wallet owners registered for the raffle. After 24 hours, the team announced the first batch of winners on Oct 7 in a 30-minute online event. Even after winning and minting their MekaVerse NFTs, the owners still couldn’t see the actual NFTs they bought until the big reveal a few days later.

Despite being unable to see the NFTs, secondary buyers were still eager to make the purchase. During the initial sale on the secondary market on Oct 8, 8,593 Mekas were reportedly minted by 5,453 wallets at a total volume of 13.9K and a floor price of 5.1 ETH as the buyers gambled on getting an extremely rare MekaVerse NFT.

The Controversy Surrounding Mekaverse

The MekaVerse project was the biggest NFT hype for months and buyers couldn’t wait to mint their collectibles. When the factions were placed on the secondary NFT marketplace,OpenSea, the price shot up to a floor price of 5 ETH and a further 8 ETH, showing the ultimate buyer optimism. In contrast, the current floor price stands at around 0.38 ETH (as of Jan 25, 2023). 

So, what led to this catastrophic fall? Fraud allegations.

As the NFT community eagerly waited for the official date of the reveal on Oct 13, 2021, the team announced a delay citing that 10 of the Mekas had identical features and they needed time to rectify the code. The botched reveal led to a significant drop in momentum and despite a successful launch a day later on Oct 14, the hits just kept on coming.

Source: Twitter

Soon after the launch, allegations of fraud surfaced. Many NFT owners on Twitter claimed that the project was rigged with some citing some unusual rare collection buys on the secondary market before the project was unveiled, which meant they could only have been made with insider information.

One of the most viral claims was that by a Twitter user called MOLOTOV, who suggested that one of the project’s developers, Wyb0.eth, bought one of the rarest MekaVerse NFTs at a low price right before the reveal. Wyb0.eth, came out to deny the allegations, stating that the reveal was foolproof and even offered his NFT to be auctioned off for charity. The damage, however, was already done.

Source: Twitter

But that’s not all. 

Many prospectors noticed and posted comparative images of some of the Mekas on Twitter showing their indistinguishable features, which eroded the unique sense of the collection. Afraid of the alleged lowrarity score, many of the new NFT owners panicked and began to sell off their MekaVerse collectibles, causing the floor price to drop from a high of 8 ETH to 1.3 ETH in a matter of days.

Compared to blue chip NFTs like the Bored Ape Yacht Club which still has a high 24 hour trading volume of over 900 ETH and floor price of 62 ETH, it is evident that MekaVerse’s NFT bubble has truly burst as its floor price is a mere 0.34 ETH and its 24 hour trading volume is at a low of 11.66 ETH with just 36 sales.

Closing Thoughts

The MekaVerse NFT collection had all the components of a great project. However, the FUD and controversy around the launch dented its credibility in the delicate NFT space. Developers and creators need to learn that we are in a digital age where information asymmetry risk is always there despite the lofty promises they may give. Investors should also be aware that NFTs are highly illiquid compared to cryptocurrencies and prices can plummet rapidly, so it is crucial to always do research before investing in any NFTs.  

Moving forward, MekaVerse continues to engage its community and rebuild trust with the hope that the project will rise to its former glory. However, the unfavorable market conditions and low trading volumes make the task a difficult one for the MekaVerse fraternity.