What is Yuga Labs? King Midas of the NFT world and greed gradually crossed the limit?

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What is Yuga Labs? The above article will share an overview of Yuga Labs, the development direction of Yuga Labs, perspectives on recent dramas as well as how to find opportunities by following the NFT world giant.



Quick summary:

  • Yuga Labs is considered the Midas king of the NFT world when he has the ability to turn any project he touches into gold.
  • The development strategy of creating a core product and developing an ecosystem around that product has helped Yuga Labs attract a huge amount of value.
  • The possibility of Yuga Labs falling asleep on the victory and forgetting the project is low.

What is Yuga Labs?​

Yuga Labs is the father of the hit NFT collection BAYC (Bored Ape Yacht Club) and is the leading large NFT developer in the market today. In March 2022, Yuga Labs announced it had successfully raised $450 million at a $4 billion valuation from multiple investors led by the a16z fund .

Current projects in the Yuga universe include:

  • BAYC (Bored Ape Yacht Club).
  • MAYC (Mutant Ape Yacht Club).
  • BAKC (Bored Ape Kennel Club).
  • CryptoPunks.
  • Meebits.
  • Otherside.
With the right moves in development, the projects of Yuga Labs have received many successes and high values. Many people liken Yuga Labs to the Midas king of the NFT world, when touching any NFT set, they become gold. And in this article, we will learn the story of King Midas of the NFT world.


The origin of the name Yuga and the moves of Yuga Labs​

Source​

The name Yuga is actually derived from a villain in the game The Legend of Zelda: A Link Between Worlds, this character has the ability to transform himself or others into 2D drawings. The name is pretty fitting for a company that wants to turn something into an NFT.

Yuga Labs' moves​

Yuga Labs was originally founded by 4 members Gargamel, Gordon, Tomato, and Sass who were software engineers who joined to learn about Crypto and were then attracted by the special uses of NFT.

After diving for a few years and being inspired by previous projects like Crypto Kitties and Crypto Punks, Yuga Labs teamed up with a few freelance Illustrator artists to create The Bored Ape Yacht Club collection.

On April 23, 2021, The Bored Ape Yacht Club opened a pre-sale for 1 week, the cost at that time to mint 1 Bored Ape NFT was 0.08 ETH (about $220). 500 copies have been minted during this time.

On May 1, 2021, the remaining 9500 copies of NFT were minted overnight, BAYC 's smart contract became the most interactive smart contract on the Ethereum network, surpassing Uniswap. All NFTs were sold out that night.

On June 18, 2021, Bored Ape Kennel Club (BAKC) joined the BAYC family, each Bored Ape owner can claim a BAKC, the main purpose of Yuga Labs this time is to thank the community for their support. households and charity funds.

August 28, 2021, launched the Mutant Ape Yacht Club (MAYC) collection, 10,000 NFT MAYC has been minted. MAYC is the next version upgraded from Bored Ape Yacht Club. Holder Bored Ape can be combined with Mutant Serum to form a mutant of Bored Ape, each Bored Ape will be given a serum.


On October 31, 2021, Yuga Labs organized Ape Fest, a week of partying exclusively for Bored Ape owners, an event that showed a practical use of NFT, giving owners benefits.

Ape Fest
On December 17, 2021, BAYC together with projects Gmoney and PUNKS Comic advertises the Adidas brand in the NFT world.


Around this same time, several Ape Holders created the Bored Ape Comic project, a comic series about BAYC and MAYC in NFT format. The manga was a hit at the time and the team is continuing to develop the next series.


On January 22, 2022, Yuga Labs held a contest called BAYC x MAYC Mobile Game Competition, exclusively for NFT holders of two projects BAYC and MAYC. 1000 winners from each collection with the highest score will receive in-kind rewards.

On March 12, 2022, Yuga Labs announced that the hit deal had acquired Crypto Punks and Meebits from Larva Labs, most likely these NFT sets will have special use cases like BAYC or MAYC. The price of both collections also increased sharply after that.


On March 17, 2022, Yuga Labs launched APE token , airdrop for BAYC collection holders. Further, APE will be used to develop the ecosystem around BAYC and other Yuga Labs products.


On April 26, 2022 , Yuga Labs launched a new game/metaverse project called OTHERSIDE, opened the sale of NFT Otherdeed (land sale) using APE tokens for payment, this NFT mint event has blocked the Ethereum network for a period of time. short time. Later, Yuga Labs also hinted at running a new chain of its own.


In addition, BAYC and MAYC holders also receive an airdrop of 1 NFT. After the end of the auction, the floor price of the NFT set was 305 APE (about $6100 at the time).

→ It can be seen that Yuga Labs is a very successful NFT developer, not only with product quality, they always add value and create incentives for their NFT holders. This can be a useful lesson for other NFT projects.

From the outstanding moves of Yuga Labs, a few ideas can be drawn:

  • The Yuga Labs ecosystem is built around Bored Ape Yacht Club.
  • Yuga Labs knows how to leverage and exploit value for its project.
  • The community that determines the success of NFT Collecitbles is the audience Yuga Labs focuses on.
Below I will dive into the game theory behind the success of Yuga Labs and investment opportunities.

What is the reason for the success of Yuga Labs?​

Yuga Labs is a master at turning NFTs into gold, the main reasons can be listed as follows:

BAYC | A premium project

BAYC means only “apes” who invest in the crypto market then become rich when the market rises sharply, once they become rich the monkeys begin to get bored, so the collection has Bored Ape Yacht Club name.

The collection accurately depicts a large number of users on Ethereum as they enter the market, seek out life-changing opportunities and “ape in” them. As a result, they became rich and a large number became financially free and no longer motivated to make money.

With that story, we can see from the beginning BAYC intended to be a premium project with a target audience of sharks and whales with large amounts of money. Combined with the unique and separate art quality when each monkey has different costumes and expressions, this makes users see themselves in it and want to own a monkey to represent themselves.


With such a story and quality, BAYC only has a mint price of 0.08 ETH (less than $200). This price is low and helps BAYC attract a large number of people to dig, from there like a snowball effect, more and more people know about Bored Ape including sharks and whales see their stories in it and buy BAYC, of course the rich will not easily sell what represents themselves.

The number of NFTs owned by unsold holders has a period of only increasing - Source: Nansen
As a result, according to the law of supply and demand, the supply is less and the demand is higher and higher ⇒ Prices increase.

Although Yuga Labs is having a lot of fuds recently, the number of ape list on the floor is still only 865/10K - Source: Open Sea

Community, what makes the difference

Community is the most important factor for the success of Yuga Labs. Yuga Labs herself is well aware of this and has created a series of events, real-life accessories, and even comic series for her projects. Yuga Labs has succeeded in creating a culture with an engaged community where owners proudly show off their NFTs. This creates a strong network effect and takes Yuga Labs projects to another level.

Famous characters and brands for BAYC to be their profile picture on Twitter
“There are three driving forces behind crypto users today: Earn, Find Fun, Ideal” (Haseeb Qureshi, Manager at Dragonfly Capital), and Yuga Labs offers its holders all three. above factor.

Great benefits from the ecosystem

A life-changing deal, this is probably the sentence that best demonstrates the benefits that BAYC brings.

If you mint BAYC from the first stage, with a capital of 0.08 E (not including gas fees ), you will have:

  • 159 E from BAYC itself (highest average price ever recorded on OpenSea).
  • 43.6 E from MAYC (highest average price ever recorded on OpenSea).
  • 14.2 E from BAKC (highest average price ever recorded on OpenSea).
  • 10K Ape tokens (worth 260K at ATH price).
  • 10 E from Otherside (highest average price ever recorded on OpenSea).
So assuming 1 ETH is equal to $2,500, the total amount that BAYC can receive is $827,000 (nearly 20 billion VND).

Note that the above is just an estimate of the amount that a BAYC can receive if holding BAYC from the beginning, holders can sell NFTs, may not receive airdrops but you can also see that the benefits are terrible that the system Ecology BAYC has brought to holders. Besides BAYC, MAYC is also airdropping other projects from Yuga Labs.

The above not only strengthens the position of holders, making them more proud of their NFTs, but also creates a fever that helps push the value of BAYC in particular and the entire BAYC system in general.

For details on the products inside the Yuga Labs ecosystem and the secret to success, please refer to: Yuga Labs and the 4 factors that make the Bored Ape Yacht Club collection a breakthrough.

Is the king gradually becoming greedy?​

Yuga Labs is undoubtedly a monument in the NFT world, but with recent dramas, is King Midas becoming too greedy for his power?

A little summary of Yuga Labs' drama

It all started with Yuga Labs' latest project, Otherside. This is an NFT collection of 100,000 pieces of land, and of course, as always, 45,000 of them are used to airdrop BAYC and MAYC holders.


With its great success in the past, Otherside quickly gained attention from the community and there were a large number of wallet addresses participating in minting Otherside NFT. After that, the project broke all the records of the whole Crypto world in terms of fees related metrics.

Specifically with gas sometimes reaching 8,000 GWEI:

  • The cost to make a transaction ranges from $3,849 to $4.832.
  • Ethereum miners raked in $264 million that day (an all-time high).
  • 71,700 ETH burned, worth about $200 million.
  • The Otherside Mint Day became the most deflationary day in the history of the Ethereum network.
Mint date parameters Otherside - Source: Glassnode
With such high gas fees for hours on end, the Ethereum network became unusable and made a large number of people clamor. Not to mention many users have failed transactions and both lost money and did not receive NFT.

The drama started when Yuga Labs tweeted about minting Otherside, whereby the content was somewhat disparaging of Ethereum, the team also mentioned about releasing a new chain.

Tweet by Yuga Labs. Source: Here
The problem is that the contract of Yuga Labs is not fully optimized while the project can be optimized by using proven auction forms or changing the contract to save costs. This made the community extremely angry and thought that Yuga Labs was too influenced by profits and forgot about the community.

This drama also reveals the current dark side of Yuga Labs when:

  • The current game is for big fish only.
  • Being superficial in releasing a new NFT project while being well aware of their impact.
  • Do not accept responsibility for yourself.
  • A large number of holders "turn back" when they do not get the profit they want and cause bad effects on the community.
  • Not to mention the legal issues, there are also many points to question in this release of Yuga.
Points to be answered in the Otherside's diploma. Source: Here
Yuga Labs has successfully raised $285 million for the launch of Otherside NFT, a huge amount. Is King Midas gradually becoming greedy and dominated by his power?

Perspectives and investment opportunities with Yuga Labs​

View of Yuga Labs​

Despite the recent negative comments about Yuga Labs, they are still a monument that any NFT development team should learn from.

In terms of development strategy

Yuga Labs has carefully researched the market it wants to target, from the selection of potential customers (Shark, Whale) to the story that creates a lot of sympathy in the community. Having a successful product to build a quality community is the core factor for the next moves.

The way Yuga Labs focuses on developing a mainstream project and “cultivating” the community of that project has helped attract a lot of value as well as create a good network effect.

About the product

Below is an iconic image of Otherside, as you can see the most iconic NFT projects are sitting in the same boat with a BAYC in a certain world (Otherside).


If you have ever read my NFT 2022 investment guide article , you will find that you have an extremely potential long-term segment, which is Interoperable NFT. Imagine you can hold items in SandBox and use them in Decentraland ,... this will be a prosperous future for NFT when platforms grow strong enough to serve this.

And recently in the roadmap leaked by a member of the Yuga Labs team, they also mentioned that they will develop an Interoperable gaming metaverse. Where NFTs will be able to freely operate in this world.

Leak roadmap of Yuga Labs. Source: Here
Surely this will take a long time and a lot of difficulties because Crypto's infrastructure is too young ( Axie took more than 3 years to develop land for the game but it has not been completed). However, if you had to find someone capable of doing this, who would be more suitable than Yuga Labs with its financial potential, top team and strong community?

In terms of commitment with further product development

With the recent dramas have raised many questions about whether Yuga Labs will continue to develop products or will sleep on its mountain of gold. However, you should remember that Yuga Labs has raised $ 450 million, a huge amount. This huge amount is an advantage but also a huge pressure when the backers of Yuga Labs will definitely monitor the team's progress closely.

In addition, such fundraising will definitely require revealing the identity of Yuga Labs members to backers, so I think Yuga Labs will continue to develop products as the roadmap that I set out. Let's wait and see if the project fulfills its promise in the future.

Investment Opportunities​

From the Yuga Labs case study, some of the opportunities I can see include:

  • Bet on the long-term success of Yuga Labs and invest in Otherside, or other NFTs related to the Yuga Labs ecosystem. This is quite risky, so I think we should prioritize monitoring before investing in this rafter.
  • Look for other “Yuga Labs” with similar growth. The closest team that I know is Azuki, if BAYC focuses mainly on the European community, Azuki focuses on the Asian community. The Azuki project has been very successful and I wouldn't be surprised if Azuki's next projects will also continue to create new hype waves, and Azuki holders will continue to enjoy the related benefits.
  • Money flow is also gradually moving to NFT on Solana and you should also go find King Midas on this ecosystem.

Epilogue​

Above is my sharing about Yuga Labs, hoping to help you gain more perspective on King Midas in the NFT world in particular and NFT investment in general. NFT has great potential and I believe this market will continue to grow strongly in the future. What do you guys think about Yuga Labs? Please comment below to discuss with Coin98!
 

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