BAYC acquisition case sets a model for NFT industry integration

On March 12, Yuga Labs, the parent company of Bored Ape Yacht Club (BAYC), announced the completion of the acquisition of CryptoPunks and Meebits. The brand, art copyright and other intellectual property rights of these two NFT series will be mastered by Yuga Labs in the future.

According to the data of NFTGO, CryptoPunks, BAYC and Meebits currently rank first, second and sixth in the NFT market value rankings. What kind of effect will the linkage of the three major NFT giants bring will whet the appetite of onlookers.

Yuga Labs revealed that the first thing after the acquisition was completed was to give CryptoPunks and Meebits holders more commercial rights. Previously, the two major NFT series had many restrictions on the commercial realization of holders, which affected the value growth of NFT to a certain extent.

Some technology media predicts that this blockbuster acquisition event will also lead the trend of professionalization and integration in the NFT industry. “Yuga Labs is starting to act like a real company, and it is seeking integration in a growing market.”

NFT acquisition highlights the value of commercial rights

On March 12, a major acquisition event that shocked the entire NFT industry was exposed. Yuga Labs, the parent company of Bored Ape Yacht Club (BAYC), announced the acquisition of two NFT series, CryptoPunks and Meebits, from Larva Labs.

Among all the dazzling NFT projects, BAYC (also known as “Boring Ape”) and CryptoPunks are undoubtedly the two most recognizable IPs. Today, these two most valuable NFT series are included in the same family.

Yuga Labs said that after owning the IPs of CryptoPunks and Meebits, the first plan is to grant the two NFT series holders the same commercial rights as BAYC holders. “We are working with the legal team to draft new terms and conditions for these two NFT collections and hope to share these with the community soon.”

BAYC acquisition case sets a model for NFT industry integration

Yuga Labs acquires CryptoPunks and Meebits

For holders of CryptoPunks and Meebits, the change in NFT “commercial rights” brought about by this acquisition is the focus of the most attention. Although CryptoPunks, Meebits and BAYC are as well known in the NFT field, there are significant differences in the commercial rights granted to NFT holders by project creators.

Yuga Labs expressly grants BAYC holders a full license in the terms of the sale of BAYC NFTs, including the use of NFTs for any commercial purpose, and holders have full commercial use rights to use, reproduce and display the purchased collectibles. This means that users who buy BAYC’s avatar NFT can use the influence and popularity of the NFT for commercial realization.

A typical example is that NFT collector Jimmy McNelis cooperated with Universal Music Group to build the 4 BAYC NFTs he held into the “Metaverse Band” KingShip; another collector, 0xb1, cooperated with the Hollywood agency Creative Artists Agency to bring Commercialization of personal NFT collections including BAYC.

In contrast, the commercial rights enjoyed by holders of CryptoPunks and Meebits are particularly limited. On the official website of CryptoPunks, there has always been no provision to give buyers the right to license and use the content. In the case of unauthorized use, the holder will face legal risks when using the NFT for commercial realization.

Meebits clarified the copyright license restrictions in the terms, indicating that under the Meebits content license, holding Meebits NFT can obtain “limited, global, non-exclusive, non-transferable rights of use and reproduction”. In short, holding Some people can use the physical goods composed of purchased Meebit for commercial purposes, but no third-party brands can participate in the commercial realization, and the realized amount cannot exceed 100,000 US dollars per year.

The limitations of the two major NFT series on the commercial rights of NFT holders have been controversial. After selling CryptoPunk #4156 last December, the anonymous collector made it clear that the IP controversy was the main reason he didn’t want to hold it.

Now, after Yuga Labs completes the acquisition of CryptoPunks and Meebits, it is very likely to change the long-term limited “commercial rights” of holders. Once the IP is fully released to holders, the value of the two NFT series is also expected to increase. .

The market reaction showed optimism about the acquisition. On the day of the acquisition exposure, the trading volume of Cryptopunks increased by 2211.27% compared to the previous day to 8852.64 ETH; the trading volume of Meebits surged by 1439% to 7799.78 ETH; the trading volume of BAYC increased by 666.14% to 7103.67 ETH. At the same time, the floor prices of CryptoPunks and Meebits rose by more than 10% and 60% at one point, reaching 74.70 ETH and 6.5 ETH.

The “commercialization” gimmick acquisition took the lead in showing a driving effect on the transaction volume of the three major NFTs.

Opportunities for NFT professional integration emerge

According to the NFT data statistics platform NFTGO, in the current NFT market value rankings, CryptoPunks, BAYC and Meebits rank first, second and sixth respectively, with a market value of $1.65 billion, $862 million and $473 million. .

BAYC acquisition case sets a model for NFT industry integration

 Current NFT Project Market Value Ranking

Although the current NFT market is much cooler than before, the combination of the three NFT giants is still full of expectations. Yuga Labs revealed some future plans in its speech. It said that it did not plan to put the two acquired projects into BAYC’s “club” model. BAYC is still the core project of Yuga Labs, and CryptoPunks is regarded as a “historical” model. ” series, Yuga Labs will be looking to add some additional utility to CryptoPunks and Meebits next, but will listen to the community on how to do it.

Strikingly, on the day of the acquisition announcement, BAYC’s official Twitter posted a mysterious link with the domain name “something is brewing” (something is brewing), and after clicking, a page with the BAYC club as the background will appear. There is only one button “Connect to METAMASK”, and when the user connects to the wallet, the page will ask the user to provide the Ethereum wallet address for the upcoming program and perform KYC verification.

BAYC acquisition case sets a model for NFT industry integration

BAYC “New Program” page

BAYC’s “new plan” aroused the curiosity of users. The project official tweeted that this new business was jointly prepared by it and GameFi giant Animoca Brands for seven months, and the first phase will be launched soon. The official Twitter also reposted a previous GameFi plan, but said “it’s not this”.

Delphi Digital researcher Teng analyzed that BAYC may be preparing to launch a new NFT market. When they have CryptoPunks and Meebits, it means that Yuga has several NFT series with the highest value and largest transaction volume. At this time, an NFT transaction is opened. The platform will bring a huge impact on OpenSea. At the same time, they can also use their brand advantages to attract more NFT projects to settle in.

Another speculation from Teng is that BAYC may incorporate CryptoPunks and Meebits into its Apeverse Metaverse program, “which could lead to unexpected collaborations, creating lore and stories with many possibilities”.

In any case, after Yuga Labs completes the acquisition, BAYC is bound to have more linkages with CryptoPunks and Meebits. In the opinion of Jacob Kastrenakes, author of the technology media The Verge, this may lead the trend of NFT specialization and integration.

With the exception of NBA Top Shot, most brands in the NFT space are quirky projects, such as Cool Cats and Pudgy Penguins, which appear to be community goods running on Discord servers, Jacob said. And Yuga Labs is starting to act like a real company that is looking for consolidation in a growing market.

In fact, in the short development time of NFT, “acquisition” has always been like an extraneous word. Since various projects are developing recklessly in this new field, professional integration operations are not common. And Yuga Labs is opening up a new development route for NFT brands.

In Teng’s view, this acquisition will also bring thoughts to other NFT projects. “What is the best way to acquire NFTs? Acquire team/company equity? Acquire intellectual property (IP)? Or buy NFTs outright?” Teng believes that in the next few weeks, as more acquisition information leaks, the outside world will Learn more about actual transaction terms and purchase agreements. At that time, Yuga Labs’ acquisition operation will become a model for other projects to refer to.

Posted by:CoinYuppie,Reprinted with attribution to:
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