Yuga Labs — creator of the Bored Ape Yacht Club and new owner of popular NFT collections CryptoPunks and Meebits — has raised $450 million in funding led by Andreessen Horowitz’s crypto fund.
Why it matters: Despite a recent slowdown in NFT trading volume, investors are still bullish on the sector and throwing their weight behind the current market leader.
Driving the news: Since launching last spring, Yuga Labs’ Bored Ape NFTs have risen to be the highest-valued collection on the market, according to CoinMarketCap.
- And with its acquisition of CryptoPunks and Meebits IP earlier this month, the company now controls five of the top NFT collections.
Details: The round values Yuga at $4 billion post-money, and includes participation from Animoca Brands, LionTree, Sound Ventures, Thrive Capital,
Yuga is clearly looking for ways to grow its community beyond those who can afford to buy NFTs selling for hundreds of thousands of dollars.
- Last week it issued a token — dubbed ApeCoin — that would let everyday users invest in the ecosystem.
- It also gave a sneak peek of an upcoming metaverse project called Otherside.
Yes, but: ApeCoin’s was not without controversy. The token’s price collapsed almost immediately upon issuance, as NFT owners who were airdropped ApeCoins flooded the market.
- Furthermore, at least one enterprising cryptobro found a way to exploit Bored Apes staked on liquidity marketplace NFTX and basically get ApeCoins for free.
- And although the token is governed by a so-called decentralized autonomous organization (DAO), with a big chunk of the allocation going to Yuga Labs and its investors, some are questioning how truly decentralized the governance structure is.
What we’re watching: Yuga Labs is clearly the early leader in a nascent market, and now it has a good deal of capital to build a moat.
- But will the startup be able to remain the leader in a market where “what’s cool” is always subject to change?
- And will it be able to attract mainstream users who aren’t on the bleeding edge of early adoption?
Of note: Yuga’s fundraising talks with a16z were first reported by Axios in early February.
