The NFT space has hit another milestone; it’s now at the point where Yuga Labs is acquiring the rights to compete for NFT projects.
Yuga Labs: Bigger than you think
When we talk about the most famous and recognizable NFT projects, one that always comes to mind is the Bored Apes Yacht Club. BAYC as its colloquially known is somewhat of a poster child for the NFT world, it has gained massive popularity over time, and as time goes by it seems like this project is only getting more popular and expensive.
CryptoPunks is another popular NFT project, and CryptoPunks NFTs have commanded some of the most impressive prices in NFT history. Meebits is another popular NFT project that has an impressive following but isn’t as popular as Bored Ape Yacht Club NFTs or CrypoPunks NFTs. As of 11 March 2022, the combined value of BAYC and CryptoPunks was at least $3.6 billion.
Larva Labs is the company behind the CryptoPunks and Meebits NFT projects, it is successful in its own right, and on 11 March it finalized a deal to transfer the rights of the Meebits and CryptoPunks NFT projects to Yuga Labs.
Over the last few months, there have been rumors and whispers in the NFT space about Yuga Labs seeking funding to help finalize acquisitions, and now we witness the first high-profile NFT collections acquired by this company. Additionally, specifics about the Yuga Labs – Larva Labs deal has not been disclosed at the time of writing this piece.
NFT Collections Ownership Struggles
A considerable amount of projects have ownership squabbles with owners- even the big popular ones we’re all familiar with. Holders of CryptoPunks and Meebits NFTs own their individual NFTs, but the intellectual property rights of the NFTs were retained by the creators – Larva Labs.
Larva Labs isn’t alone in this space, so this piece is not to vindicate the people behind this company. During the acquisition announcement, Yuga Labs announced its commitment to give full commercial rights of NFTs to its holders.
This move does not mean that Yuga Labs will be transferring the full rights of NFTs to owners, but what they’re doing is considerably more than what Larva Labs did during their time in charge. Yuga Labs also grants holders of BAYC and MAYC full commercial rights to their NFTs, so it was a natural move for the company to make with its new acquisitions.
Are NFT companies consolidating?
Since the beginning of 2022, predictions about the “eventual” or “inescapable” NFT crash have made headlines globally. Admittedly, the claims and predictions are not unfounded or made out of thin air; after the amazing year NFTs had in 2021, there might be only one direction for NFTs to go – down.
The major acquisition by Yuga Labs might be the first of many, and if acquisitions keep happening over the next few months, it might be a sign that industry experts are consolidating resources to ensure that if a downturn occurs, they’re in the best position to survive.