What enlightenment does Yuga Labs bring to us by winning the largest single financing in the NFT field?

Recently, Yuga Labs, the parent company of BAYC, completed a new round of financing of 450 million US dollars at a valuation of 4 billion US dollars, and the highest single financing record in the NFT field was refreshed again. This round of investment has a luxurious lineup, led by a16z, with participation from Animoca Brands, Coinbase and MoonPay.

This financing is a landmark event in the Metaverse. Yuga Labs, which holds the two strongest IPs of CryptoPunk and BAYC, can become the ultimate ruler of the Metaverse with the support of top teams and top traffic Where to take?

Who is Yuga?

In a society where various industries are constantly introverted, the only place where heroes can not ask where they come from is probably only Web3. In the rapidly changing world of Web3, where legends are constantly unfolding, the unknown a year ago can amaze everyone in the blink of an eye.

Looking back at the development trajectory of Yuga Labs, it opened low and walked high. The start was not smooth, the team was of ordinary background, and the pre-sale scene was deserted, which was very different from the successful image in the eyes of people now.

Yuga Labs was founded in February 2021, and the four anonymous founders Gargamel, Gordon, Tomato and Sass don’t seem to have particularly glamorous resumes. Gargamel works as an editor and book reviewer in the real world. Gordon originally planned to study for a master of art. He started to speculate on coins due to illness, and was sued by Bitmex for a domain name dispute. The other two, Tomato and Sass, are software engineers but have no previous experience with NFTs.

BAYC (Bored Ape Yacht Club) is a famous work by Yuga Labs. It tells the story of a group of apes who are free to speculate on coins and do nothing, fishing and graffiti in a club in the swamp. This is a very crypto story. Coin speculation is a timeless topic of crypto. Ape is a common term for crypto, referring to unthinking traders, gamblers or leeks. Ape in describes brainless rush and stud.

What enlightenment does Yuga Labs bring to us by winning the largest single financing in the NFT field?

(Image source: BAYC website)

The story is well told, but not much is paid for. On April 23, 2021, BAYC pre-sale, the uniform retail price of each ape is 0.08 ETH (about 200 US dollars at the time). The pre-sale is not optimistic, and only about a few hundred were sold that night (compared to the various NFTs of varying quality that appear in the market, they can basically be sold out in a few hours).

What enlightenment does Yuga Labs bring to us by winning the largest single financing in the NFT field?

(Image credit: BAYC Twitter)

The turning point occurred on May 1st. With the sale of the last BAYC in the pre-sale period, the well-known collector Pranksy announced on Twitter that he had purchased 250 BAYCs. BAYC sold out after only 117 minutes. It’s important to note that Pranksy’s behavior was spontaneous, and there was no prior ventilation with Yuga Labs.

As Yuga Labs grants ownership and commercial use rights to BAYC, BAYC owners form a large marketing team that drives brand growth. Since then, BAYC has become popular all the way. Twitter KOLs, NBA superstars, singers, actors, TV hosts, wealthy businessmen, etc. have purchased BAYC and acted as spokespersons spontaneously. In particular, the news that NBA star Stephen Curry purchased BAYC NFT works for about $180,000 and used them as Twitter avatars in August last year attracted a lot of attention around the world, and BAYC accelerated to break the circle.

What enlightenment does Yuga Labs bring to us by winning the largest single financing in the NFT field?

(Image source: Curry Twitter)

If Yuga Labs was more hidden behind the scenes of BAYC before, then after entering 2022, Yuga Labs began to move to the front. On March 12, Yuga Labs announced the acquisition of CryptoPunks and Meebits, which caused quite a stir in the circle. This move means that Yuga Labs has become the only operator in the circle with two top IPs, CryptoPunks and BAYC. On March 16, Yuga Labs announced that it will start virtual land sales this year, and launch the game MetaRPG and APECoin to jointly build Yuga Labs’ Metaverse plan. On March 23, Yuga Labs completed a $450 million financing at a $4 billion valuation, pushing everyone’s emotions to a climax.

What kind of story did Yuga tell?

From the data point of view, BAYC has become the well-deserved king of NFT. The floor price of BAYC exceeds 100 ETH, which is the most expensive floor price among all NFT projects. BAYC has the largest/most active Discord community in the NFT space with over 130,000 users. OpenSea’s daily trading volume exceeds $150 million, and 10% of the trading volume is contributed by BAYC holders. In the past year, the BAYC team has an amazing ability to attract money, with a net profit of 127 million US dollars. Spending on advertising, products and technology, and employee salaries added up to $4.24 million.

What enlightenment does Yuga Labs bring to us by winning the largest single financing in the NFT field?

(Image credit: Yuga Labs Deck)

Success in the NFT space has extended Yuga Labs’ tentacles to the wider Metaverse.

Yuga Labs details the future development plan in the 90-page Deck: not just NFT, but to redefine the Metaverse.

In the opinion of Yuga Labs, the current Metaverse is very cliché, and the games of chatting, online gatherings, and mutual battles have already done well in Web2. A perfect Metaverse would be a virtual world to which all humanity is connected rather than everyone building their own world, as is currently the case. Yuga Labs wants to build an interoperable Metaverse and launch the game MetaRPG.

The story of MetaRPG begins with the energy released after the Big Bang being gradually depleted and celestial bodies disappearing one by one. A new story begins when an alien life known as Kada has been monitoring Earth’s every move, creating a new Metaverse before Earth’s destruction, and saving BAYC and other interoperable NFTs to new continents.

On the New World, there are 100,000 Genesis lands, which will correspond to the real lands in the game. The land price is conservatively estimated to be 1 ETH per piece of land. Based on the current price of Ethereum, the sale of land will bring Yuga Labs $300 million in revenue. Of course, with the successful case of BAYC, I believe that buyers will be FOMO at the beginning, and Yuga Labs revealed in the Deck that there will be 10,000 unique Koda randomly distributed on the land, and these land will be snapped up with a high probability of going online. .

What enlightenment does Yuga Labs bring to us by winning the largest single financing in the NFT field?

(Koda image, source: Yuga Labs Deck)

In addition to launching Metaverse games, Yuga Labs will also launch a Metaverse store, which is meant to be a benchmark for the iOS App Store and Google Play.

APECoin (APE) will be a general-purpose token in games and in the Metaverse Store. Although due to regulatory considerations, Yuga Labs tried to make it clear that APE was not directly involved in the issuance of ApeCoin by Yuga Labs, but everyone understood it. This relationship can be seen from the BYAC and MAYC series of NFT peripheral products will be released on March 29th, only accepting APE payment.

Breaker or reaper?

Yuga Labs’ high performance has attracted many experts in the industry to discuss.

Tang Han, the holder of BAYC and the founder of CryptoC, directly used “the shock of not staying alive” to describe what he saw Yuga Labs described in Deck.

The first shock point is the team configuration. Except for the early four founders of Yuga Labs, the newly introduced executives are all Web2 traffic experts, spanning Silicon Valley Internet giants and the American fashion industry, and they are the top match in marketing operations. The integration of capital and resources from the Web2 world and the Web3 world will make Yuga Labs no opponent to compete with itself in the next year.

The second point is grand vision. Yuga Labs’ plan is to unify the Metaverse, build a virtual game completely different from DCL and Sandbox, and realize the linkage between the real world and the virtual world, linkage of all PFP projects of Web3, linkage of Web2 brand and Web3 world.

The third point, killing OpenSea has nothing to do with OpenSea. There will be a lot of UGC content in the Ape universe, and the preferred trading platform for this content will no longer be Opensea.

Mandy, the holder of BAYC and the founder of odaily, believes that Yuga Labs is like the Disney of the Metaverse world, and is committed to breaking the boundaries of the “Metaverse”.

Comparing Yuga Labs, which was born just over a year ago, with an entertainment giant that has survived for nearly a hundred years may seem overwhelming, but Mandy believes that IP is undergoing major changes that have not been seen in a century, and the future can only be seen when the pattern is opened.

From the wide-screen sound film Mickey Family in the 1930s, to the IP HelloKitty owned by Sanrio in the 1970s, to the fire of LINE FRIENDS, a brand derived from the Korean social application LINE in 2011, the transmission carrier and form of IP are all changing with the times. NFT was born in a very interesting era, subverting the grand narrative of the business world of IP and copyright, blurring the boundaries of consumer goods, artworks and luxury goods, we can no longer use the old reference to compare the new world, to understand it, embrace It thus lives up to the gift of the times.

The top team and grand roadmap can easily make people FOMO, but there is no guarantee that the project will be successful, such as EOS from BM, the “three surname slaves” in the currency circle, and Algorand from Turing Award winner Halo, etc. Crypto KOL BTCdayu is cautiously optimistic about the prospects of Yuga Labs‌, Yuga Labs sells BAYC, APE, land and other games, there is a common problem that all community members, especially small retail investors, are natural fuels .

A person from Fenbushi Capital pointed out that Yuga Labs is ugly.

“Apart from speculators, the biggest expectation of BAYC holders is to issue coins through airdrops. BAYC issuance of coins will be the last resort, and there will be no way out since then. Yuga Labs has also successfully completed the harvest of capital through financing. Everyone knows that BAYC is a meme rather than an IP, because it has nothing to do except enrich some people and drive this wave of PFP hype. It can be said that the operation of BAYC and Yuga Labs represents the end of the era of PFP NFT. “

Lu Yuanyuan, a senior DeFi player and author of “Old Lu’s Blockchain Notes”, comprehensively and objectively analyzed the comprehensive strength of Yuga Labs from the aspects of operation, development, narrative, profitability, and competition barriers. Operational, narrative, and competitive barriers are full, and profitability and development capabilities are insufficient. For example, in terms of profitability, although the net income in 2021 is US$127 million, it is mainly from the sale of MAYC, and BAYC’s royalty income only accounts for 30%. In terms of development capabilities, racing games and arcade-style games created in partnership with Animoca have yet to be launched.

inspired

As a nodal event, Yuga Labs has brought us many inspirations, such as the NFT market’s mode of transitioning from stragglers to group operations, and how to value NFTs.

In the past period of time, most NFT project sponsor teams have simple configuration, unclear development routes or very random, which makes it difficult for projects to come out. It can be seen from Deck of Yuga Labs that the team is over-matched with experts from the Web2 field, which further strengthens the ability of marketing campaigns, which is rare in other projects. The development route is very clear, and the nodes are accurate to the month. For example, Koda will be airdropped in May, the APE Film Festival will be held in July, and the land sales will be held in August.

The latest data from DappRadar shows that BAYC has a market value of more than $3.6 billion and is currently the most expensive PFP NFT project. What is the basis for valuing NFT projects? Is there a unified model framework to refer to?Timestamp Capital recently proposed a new network valuation model‌, which is a new value network valuation model extracted according to the “Law of Success” and “Metcalfe’s Law”:

What enlightenment does Yuga Labs bring to us by winning the largest single financing in the NFT field?

Among them, V refers to the value of the network, Vₙ represents the value of a surrounding node, aₙ represents the tightness of the connection between this node and the central project, and n represents the number of connected nodes around.

That is, the value of a project depends on whether its own value is needed by many other people or projects (whether n is large enough); whether the people or projects that need it are successful (whether Vₙ is large); and Is this need strong and irreplaceable (size of aₙ).

For NFT projects, we mainly refer to the dimensions of culture, aesthetics, community, assets and practicality. Taking the BAYC community as an example, Vₙ represents the value of each community participant to the network, aₙ represents the degree of connection between community members and BAYC, and n represents the population that community participants can reach. When Curry bought BAYC in August last year, Vₙ was very large (Curry’s own influence), aₙ was not large (the tightness of the connection between Curry and BAYC), and n gradually became larger (Curry will influence a group of people to buy into BAYC), so V began to increase, which is one of the reasons why the floor price of BAYC rose sharply after Curry bought BAYC.

There is a lot to be learned from Yuga Labs for entrepreneurs. In terms of team configuration, their founding team is not luxurious, but they finally beat a card that didn’t start very well. In terms of project operation, they let NBA superstars and entertainment stars spontaneously bring goods without spending any endorsement fees. In terms of community building, they have established a huge user community covering all parts of the world in a very short period of time. After the project entered a stable period, they quickly found the quadratic growth curve, and at the same time further developed and expanded with the help of capital. Yuga Labs keeps breaking our imaginations of the future.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-enlightenment-does-yuga-labs-bring-to-us-by-winning-the-largest-single-financing-in-the-nft-field/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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