Yuga Labs Sells NFT Icons to Focus on Apes and Otherside

As Yuga Labs navigates a challenging market, the company has begun to divest itself from several well-known NFT collections, including CryptoPunks and Moonbirds, while concentrating its efforts on Apes and Otherside.

Key Takeaways

Yuga Labs has sold several NFT collections, including CryptoPunks and Moonbirds, to refocus on its flagship projects like Apes and Otherside.
The CryptoPunks IP has been given to the Infinite Node Foundation, while Moonbirds has been transferred to Orange Cap Games.
The sale signals a significant change for Yuga Labs, which previously acquired these assets during a peak in the NFT market.
NFTs currently face a downturn, but Yuga Labs remains optimistic, asserting that these decisions are strategic rather than a reaction to market volatility.

Yuga Labs sheds NFT icons as it doubles down on Apes and Otherside

Yuga Labs, known for acquiring prominent NFT brands, is now reducing its portfolio by transferring the intellectual property rights of notable collections like CryptoPunks and Moonbirds. This strategic shift comes as the NFT market faces continued difficulties. The sales, involving key partners, highlight Yuga Labs' commitment to focus on its primary projects while ensuring the legacy of the sold collections is preserved.

Yuga Labs Sells Iconic NFT Collections

Recently, Yuga Labs has made the strategic decision to slim down its portfolio by transferring intellectual property rights to several NFT collections, including CryptoPunks and Moonbirds. This move may indicate a significant change for the once-dominant NFT powerhouse. The IP for CryptoPunks now belongs to the Infinite Node Foundation, which is dedicated to preserving digital art.

The Moonbirds collection has also changed hands, now being managed by a lesser-known gaming company called Orange Cap Games. Although the specific terms of these deals are undisclosed, it is reported that the Infinite Node Foundation may have acquired CryptoPunks for around $20 million, which is likely less than what Yuga paid for them in 2022. This price is a stark contrast to the heights of the NFT market when a single CryptoPunk sold for over $23 million in Ethereum (ETH).

Despite these sales, Yuga Labs retains rights under the standard IP license, as noted by Natalie Stone, the managing director of CryptoPunks. Nicki Schiller, Chief of Staff at Yuga Labs, emphasized that “with Punks, we remain the largest holder and chose Node for their ability to steward the legacy — we’ll stay involved via the advisory council.”

In Schiller's comments, she highlighted the importance of Moonbirds having a dedicated team, asserting that Orange Cap Games is well-suited to push the franchise forward. “These moves reflect a clear focus: Yuga is going all-in on Apes, Otherside, and what’s next,” she stated.

Market Context

This sale represents a substantial pivot for Yuga Labs. When Yuga acquired the CryptoPunks collection from Larva Labs in 2022, the NFT marketplace was booming, and prices were soaring. However, the situation today is markedly different, with trading volumes for top NFT collections plummeting by 95% from their highs.

The exact reasons behind Yuga Labs' decision to sell these beloved collections remains somewhat unclear, but Micky Malka, the chair of the Infinite Node Foundation, pointed out that CryptoPunks "sparked a cultural movement." He added that the foundation is planning a permanent exhibition space in Palo Alto and aims to showcase the complete 10,000-piece collection at the Toledo Museum of Art to foster engagement among scholars, curators, and collectors.

In 2017, CryptoPunks were created by Matt Hall and John Watkinson of Larva Labs. These 10,000 unique characters quickly transcended being mere digital images, evolving into symbols of status, collectibility, and the advent of the NFT movement. Yuga Labs entered the scene during the height of this excitement by purchasing various NFT collections, but now it is offloading some of the same assets.

New Owners and Future Directions

Orange Cap Games, which acquired the Moonbirds IP as part of the deal, expressed enthusiasm about the opportunities this brings. They emphasized the need to revitalize the franchise, stating that Moonbirds "have simply been nesting during the bear market" and are now ready to "take flight" under their management.

With a proven track record in NFT gaming — notably with their collectible card game Vibes TCG, based on the Pudgy Penguins IP — Orange Cap Games prides itself on quality and detail in its projects.

Yuga Labs co-founder Greg Solano expressed optimism about the new direction for Moonbirds, stating, “Moonbirds deserve a team whose whole world is the birds.”

Regarding the future of Moonbirds, Orange Cap Games plans to introduce on-chain components, with any layer-2 solutions exclusively utilizing ApeChain, the network supported by Yuga Labs.

However, it’s crucial to recognize the challenging landscape of today’s NFT market. Although declines in activity have caused some concern, Schiller firmly stated that the decisions to sell assets were not influenced by market volatility but were instead driven by “strategic clarity.”

Yuga Labs appears to be concentrating on its core projects, with Solano recently stating on social media that the firm is “laser-focused on Apes, Otherside, and something special we’ve been cooking up.” The Otherside metaverse, which is linked to Bored Apes, continues to be a central focus for the company.

Looking Ahead

As Yuga Labs hands off these iconic collections, co-founder Wylie Aronow remarked that acquiring CryptoPunks was more about honoring its cultural significance than mere ownership. He described giving away the brand as a “full-circle moment.”

Meanwhile, the Infinite Node Foundation is building a robust team to manage the CryptoPunks collection, featuring advisors from both Larva Labs and Art Blocks. A live Ethereum node will operate at its new facility to enhance the emphasis on decentralization.

Looking to the future, Schiller confirmed that the "persistent Otherside experience" is set to launch this summer, marking a significant new phase for the project. She also hinted at exciting upcoming developments concerning ApeFest and the eagerly anticipated real-life Clubhouse, with more information to be released soon.

As opinions vary within the NFT community regarding the significance of these sales, it’s clear that the NFT market is evolving. Rather than being dead, it appears to have matured, becoming quieter and perhaps a bit wiser as it navigates new realities.