What led to this massive NFT deal? Why do ‘punk’ creators say they’re not ‘well suited’ to support the project?
Just last week, “CryptoPunks” and “Bored Ape Yacht Club” were the two main competitors in the field of NFT avatar projects. They now have a common owner, and in news last Friday, Larva Labs sold the “Crypunk” IP to “Boring Ape” creator Yuga Labs.
Despite being the two largest NFT avatar projects in the space, they both take very different paths. This NFT series created by Larva in 2017 has the status of OG (abbreviation of Original Gangster, meaning “Old Cannon”) in the Ethereum field, but with the expansion of the overall market last year, the official largely let it go. Meanwhile, Yuga’s project has sprung up with its sizable interest and growing celebrity membership club.
That creates a stark contrast that has been magnifying in recent months. Now, Larva has sold the rights to “Crypunk” and Meebits to Yuga Labs, as well as the two series of NFTs they own. The creators of “Boring Ape” plan to respond to a long-standing complaint from some “cypherpunk” owners.
Following the announcement later this week, we take a look at what led to Larva Labs’ decision to withdraw from “cypherpunk” management, and what the two companies had to say at the time of the deal.
Larva’s two-person team, Matt Hall and John Watkinson, created a “cypherpunk” Ethereum NFT in 2017, with 90% of the total 10,000 available for anyone to mint for free. Gradually, “punk” gained value and prestige in the still infancy NFT space, and it was a big success when the market exploded in early 2021.
Cypherpunks quickly became a prominent status symbol in the NFT space, with average selling prices (as measured by CryptoSlam) suddenly hitting five figures in January and then six figures in August as the NFT market soared to new heights. That month alone, nearly $680 million worth of “cypherpunks” were sold on the secondary market. Even Visa bought one.
Much newer than Cypherpunk, Boring Ape Yacht Club, which launched last April, borrowed 10,000 NFT avatars with random traits. But it takes the concept of NFT avatars to a new level, turning the so-called yacht club into a unique social organization that offers additional and ongoing benefits to those who embrace its vision.
In the months following launch, holders of Bored Ape got two additional free NFTs — Bored Ape Kennel Club (Bored Ape Kennel Club) and Mutant Ape Yacht Club (Mutant Ape Yacht Club) — — Equally proving valuable. In addition to that, holders will be able to purchase exclusive merchandise and attend a free concert in New York City last fall featuring The Strokes, Chris Rock and other stars.
But for some holders, BAYC (short for “Boring Ape Yacht Club”) is the jewel in the crown, and the most valuable part is the ability to commercialize the image of the ape they have. Boring Ape can be used for product marketing and packaging, or for original merchandise, or even to create virtual bands—as producers Timbaland and Universal Music Group are doing respectively.
Yuga Labs is also developing a game based on “Boring Ape” and plans to launch a potentially valuable Ethereum token in the near future as well.
While some cypherpunks attested that their provenance made them valuable and compelling, the creators offered no perks or perks, so others began to complain about Larva Labs’ lack of attention to the project.
For example, during last fall’s NFT conference in New York, when Yuga hosted the 2021 Ape Festival event (including the aforementioned concert), some cypherpunk holders tweeted that Larva Labs had nothing around the conference. Do: No parties, no benefits.
But the bigger problem is the lack of clarity on the commercialization rights of “cypherpunks” for some holders, coupled with Larva’s interest in derivative NFT projects — or those clearly inspired by the original “cypherpunks” —— Filed lawsuits at every turn, which proved to be a wedge.
For example, famous pseudonym collector Punk 4156 sold his “cypherpunk” avatar for more than $10 million in December after getting tired of Larva Labs’ apparent reluctance to clarify rights issues for the project. Official attempts to drive derivatives off the market — like CryptoPhunks, a parody project that mirrors the image of “cypherpunk” — also pissed him off.
In February, another situation angered some cypherpunks. NFT community members created a smart contract that allows holders to mint a single “wrapper” NFT based on the original “cypherpunk” contract (abandoned due to a bug) and sell it as a “wrapper V1” version.
Larva Labs has hit back at the project, claiming that they are not “official” “cypherpunks.” But at the same time, the two men started selling some of their own, but claimed illegal V1 versions of “punk.” Ultimately, Larva Labs apologized for the incident, with Hall calling their actions “stupid.” Meanwhile, the duo foreshadowed potential legal action against the V1 project, which was removed from OpenSea shortly thereafter.
Meanwhile, the Boring Ape Yacht Club is attracting celebrity buyers like Eminem, Snoop Dogg, and Steph Curry, and NFTs are appreciating— For the better part of the past three months, the floor price of “Boring Ape” was higher than that of “Crypunk”.
Amid missteps and a lack of communication, some see Larva Labs as a Web2 company navigating the fast-growing Web3 market, trying to satisfy everyone who expects more transparency, collaboration, and power from their expensive NFT investments By.
a new way forward
They can now get at least some under the ownership of Yuga Labs, which announced on Friday the acquisition of the “Crypunk” and Meebits IP.
At the outset, Yuga Labs said it would grant holders of both series of NFTs full commercialization rights, meaning they could use their Cypherpunk and Meebits avatars for products, services, marketing, and other ideas . Yuga will also reportedly not pursue any previous Digital Millennium Copyright Act (DMCA) takedown requests by Larva Labs regarding derivative projects.
In an announcement Friday, Larva Labs acknowledged that the growing demands on today’s NFT Profile Picture (PFP) projects exceed their goals and capabilities.
“Our personalities and skills are not suited to community management, public relations, and the day-to-day management that this type of program requires and deserves,” they wrote.
Larva Labs and Yuga Labs were connected through Guy Oseary, a veteran music industry executive who represents Yuga in his growing entertainment business. Larva Labs wrote that it considered partnering with the creators of “Boring Ape” and ultimately thought Yuga could better maintain the “Crypunk” and Meebits IPs and move on.
“We found many commonalities, but we also saw in them the skills and expertise in this area that we lacked,” Larva Labs wrote. “In many ways, Yuga is the innovator of the modern NFT avatar project model, and the best person in the world at running and growing these projects and the surrounding communities.”
Larva Labs sold the IP but will continue to experiment and launch new projects, which officials wrote are more in line with its strengths than maintaining existing projects. It also retains the Autoglyphs Generative Art NFT project, which is similar to, but older than, the Art Blocks NFT project.
Beyond opening up commercialization rights, it’s unclear how Yuga Labs plans to use the Cypherpunk and Meebits IP. Co-founder Wylie Aronow, aka Gordon Goner, told The Verge that Yuga doesn’t plan to reshape the projects into a “boring ape”-style membership club, and it doesn’t plan to add royalties to its current royalty-free collection. But he said we could see things like streetwear, events and games around the new IP.
“We’re not in a rush to do anything but give people full commercial rights to see what they create and listen,” Yuga Labs tweeted on Friday.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/why-did-larva-labs-sell-cypherpunk-ip-to-boring-ape-creators/
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