Blog Misc What is Yuga Labs? Is it the King Midas of NFTs?

What is Yuga Labs? Is it the King Midas of NFTs?

date May 24, 2022 time 5 min read 98 views

Yuga Labs announced the company’s valuation to $4 billion with the aspiration to build a media empire around NFTs. So, what is Yuga Labs? Could the price of Yuga Labs NFT recover from the latest drop?  All these questions will be answered in this article.

Yuga Labs intends to use the money from its latest funding round to bring its NFTs to the metaverse. Are their projects entering the metaverse?
Yuga Labs intends to use the money from its latest funding round to bring its NFTs to the metaverse. Are their projects entering the metaverse? (Source: Pixabay)

Yuga Labs is well-known in the NFT space with one of the most valuable collections called the Bored Ape Yacht Club (BAYC). They wish to create “an interoperable world” that is gamified and completely decentralized. Currently, the company is stepping into the world of metaverse with the project named Otherside. More interestingly, Yuga Labs has been valued at US$4 billion since last March. If you consider whether you should invest in Yuga Labs or not, let’s jump to our article for more information.

1. Who is Yuga Labs?

Founded in 2021, Yuga Labs is a blockchain technology company that specializes in the fields of blockchain, cryptocurrency, and digital media. 

Yuga Labs is not only the owner of three of the biggest NFT brands in the industry but also the team behind Bored Ape Yacht Club (BAYC) – a project including 10,000 ape-themed NFTs with different traits and unique characteristics.

The name Yuga Labs stems from the villain in the game The Legend of Zelda: A Link Between Worlds, who had the ability to transform bodies or other people into 2D art. Hence, the name is quite suitable with the ambition to turn something into an NFT.

2. Yuga Labs’ success

Yuga Labs was originally formed in 2021 by 4 members: Gordon, Tomato, Gargamel and Sass who are all software engineers with knowledge of the crypto market and NFT. Unlike other NFT projects before, Yuga Labs launched innovative strategies for enabling engagement and building a sustainable NFT ecosystem. 

In terms of both product quality and accompanying value, Yuga Labs is currently one of the most successful NFT developers, who aim to create more incentives for those who keep their NFTs. This results in many users being optimistic about Yuga Labs NFT.

Before collaborating with freelance Illustrator artists to create her The Bored Ape Yacht Club (BAYC) collection in April 2021, Yuga Labs had spent a lot of time diving into earlier projects like Crypto Punks or Crypto Kitties.

The popular Bored Apes Yacht Club (BAYC) series’ name was inspired by people in Crypto referring to themselves as apes. Then, Yuga Labs has developed more different NFT and metaverse-based solutions. 

In addition, Yuga Labs expanded its NFT portfolio by acquiring the intellectual property rights of the CryptoPunks collection from Larva Labs to the CryptoPunks and Meebits NFT collections. The company has proven itself to be more engaging and releasing new tokens on a regular basis. Also, recently, the BAYC series has gained publicity through investments made by many celebrities like Snoop Dogg and Eminem. These two collections lead to a  $5 billion capitalization in the digital art market.

The acquisition of CryptoPunks and Meebits cements Yuga Labs’ position and Yuga Labs NFT at the top of the PFP NFT market.
The acquisition of CryptoPunks and Meebits cements Yuga Labs’ position and Yuga Labs NFT at the top of the PFP NFT market. (Source: Pixabay)

Furthermore, only a few days after the intellectual property acquisition, Yuga Labs announced that it became the most valuable NFT project by market capital due to raising US$450 million in seed funding, bringing the Web 3.0 company to a total valuation of US$4 billion. 

At the same time, last March, Yuga Labs launched Otherside – a gamified metaverse that allows users to turn their NFTs into playable characters. 

Learn about the “universe” Bored Ape Yacht Club

Bored Ape Yacht Club or BAYC is a collection of 10,000 NFT “apes”  that are issued as ERC-721 tokens on the Ethereum network.

BAYC is essentially NFT photos released and brought to trading on the market based on scarcity and cannot be faked due to blockchain technology to create its value. By combining 170 different features with details of clothes, facial expressions, accessories, etc., each photo is uniquely created. Several apes are considered rare and of much higher value. 

In addition, because of the unique feature, the owners can use pure NFTs as their avatar, which makes another attractive point for these NFTs. Also, when owning Bored Ape, users can become members of BAYC and receive certain privileges based on its development roadmap that includes taking part in the community’s general drawing and drawing as they wish – THE BATHROOM, items, Airdrop tokens…

Yuga’s trailer for Otherside hit the week of launch.
Yuga’s trailer for Otherside hit the week of launch. (Source: Pixabay)

Besides, BAYC offers other NFT projects “accompanying” guests like Bored Ape Kennel Club (BAKC) including NFT photos of Shiba Inu and Mutant Ape Yacht Club (MAYC) with mutant apes. 

ApeCoin (APE), a Yuga Labs NFT and an ERC-20 token are considered utility and governance tokens used to empower a decentralized community building at the forefront of web3. This token would further democratize the BAYC ecosystem and allow users to access services both inside and outside the ecosystem. ApeCoin was launched by ApeCoin DAO, an entity made up of council members who would execute the decisions of the community to implement full decentralization.

According to the project’s bio on Twitter, Yuga Labs hopes this token will become the anchor for the BAYC economy and governance system. This will allow holders to not only use the token to vote on policy changes but also use it to buy items both in the digital realm and real world.

More interestingly, 160 million APE is allocated to Yuga Labs, of which 10 million APE will be used for charity. Another 80 million APE will go to the founders of BAYC and Yuga Labs. 

On April 30, Yuga Labs’ Otherside, a metaverse project that will also include a play-to-earn MMORPG was launched. Yuga Labs describes the project as markedly broad and vague, but that didn’t deter them from selling virtual Otherside land parcels via its Otherdeed NFT collection. 

Otherside is largely hoped to be a metaverse world of some kind. Yuga posted a teaser with computer animation, which has helped turn up the hype meter for Otherside to a fever pitch. 

The Otherside video has drawn 2.7M views and depicts the images of other major NFT projects like World of Women, Nouns, Cryptoadz. And Yuga Labs NFT – APE will be used exclusively to pay for the Otherside mint. With the token airdropped to BAYC and MAYC holders, Yuga is taking another step to prove itself as the center of gravity in the NFT universe.  

However, there is an issue arising from the launch of Yuga Labs’ Otherside Web3 project that the Ethereum blockchain network crashed. In terms of this event, if Yuga Labs can deal with the surging gas prices, and potential phishing scams, the price of Yuga Labs NFT may recover in the future due to the potential and the above plan.

After this event, many users were concerned with some questions like Is the Yuga Labs sustainable in the long term? And for that matter, are Yuga Labs NFTs? Even if collections like BAYC are dependent on subjective taste, anything could happen.

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