Bored Ape Yacht Club’s Yuga Labs acquires CryptoPunks IP from Larva Labs

March 24, 2022

Yuga Labs announced that they have bought the rights to the intellectual property of the CryptoPunks and Meebits collections from Larva Labs. Yuga is well known in the NFT space for creating one of the most valuable collections, the Bored Ape Yacht Club. Now, Yuga Labs is valued at US$4 billion.

A little refresher on non-fungible tokens

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes which allow them to be distinguished from one another. The difference between NFTs and fungible tokens is that they cannot be exchanged or traded at equivalency, while fungible tokens (such as cryptocurrencies) are identical to each other. NFTs have become a fast favorite in the art world since they combine all three demographics of tokenization, fast appreciation and being stored on the blockchain.

Larva Labs trajectory

Larva Labs is the creator of the iconic CryptoPunks NFT collection. In 2017 CryptoPunks was released with 10,000 pixel art Punk characters and turned into a big success. The series has been one of the earliest and most successful NFT collections. CryptoPunks led to the evolving of digital collectibles on the Ethereum blockchain. After that, they created Meebits, 20,000 unique 3D voxel characters, created by a custom generative algorithm.

Yuga Labs’ success

Yuga Labs is an NFT and cryptocurrency marketing and development company. Its name stems from the villain in a game who can turn himself into 2D art. In April 2021 the firm launched the popular Bored Apes Yacht Club (BAYC) series, whose name was inspired by people in Crypto referring to themselves as apes. Since then, Yuga Labs has developed multiple more NFT and metaverse-based solutions. The company became the most valuable NFT project by market cap in the beginning of 2022, only a year after being founded.

Yuga labs acquires intellectual property of CryptoPunks collection from Larva Labs

Yuga Labs has proven itself to be more engaging and releasing new tokens regularly. The BAYC series is a lot more recent and has especially gained publicity through investments made by many celebrities, including Snoop Dogg and Eminem. The merger of the two collections leads to a capitalization in the digital art market of US$5 billion.

While the projects will be treated separately the founders of Yuga Labs announced that they want to unite the communities of both companies also by aligning the intellectual property rights and transferring the ones of the CryptoPunks NFTs to the buyers, which is an approach that formerly has been opposed by Larva Labs. BAYC founders further explain their vision of building a community-owned brand that extends beyond NFTs. They ask users to keep an eye open for what is next because updates to the collection are to come.

Yuga Labs further funding

Only a few days after the intellectual property acquisition, Yuga Labs announced that it has raised US$450 million in a funding round, bringing the Web 3.0 company to a total valuation of US$4 billion. 

This article comes to show how the art world is getting a full new life in the 21st century, and as mentioned in previous articles, NFTs will play an important role in our future, alongside physical paintings. Sign up to our newsletter down below for regular updates.

Kunst21 team

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