If you are following the NFT news and are updated about the ecosystem, you probably have heard of the Yuga Labs acquisition of Larva Labs over the weekend. For some people that means the creators of BAYC (Bored Ape Yacht Club) NFT collection have acquired the CrytptoPunks and Meebits NFT collections.
Why is this news important and what does this mean for the holders of all these NFT collections and the NFT ecosystem overall? Let’s look at this in detail. A few publications have tried to make some sense of the development and the far reaching impacts this development can have on the industry. The verge has summarised the same really well here where they have mentioned that “The acquisition comes as the NFT market has started to cool off. After a rapid rise in sales volume and value throughout much of last year, the market began to dip around the holidays and has yet to pick back up.”
Other publications summarise this deal as a sign of maturing of the industry where mergers and acquisitions are becoming a norm. The consolidation will mean a few companies will cement their position as a market leader and bring the much needed finesse to the overall NFT space, which has so far been crowded by the celebrity based NFT projects. Yuga Labs has shown its willingness as a company which wants to get ahead of every other company out there by betting big on the projects it has acquired and letting the holders have the same commercial rights that BAYC and MAYC owners enjoy.
As per the official blog post of Yuga Labs they state that by handing over these rights, they are further aligning CryptoPunks and Meebits with the web3 ethos, and are expecting a wide-range of third party developers and community creators to incorporate CryptoPunks and Meebits into their web3 projects. They will be building the overall brand right alongside them. This is unlike the approach they have taken with BAYC where they developed a ‘club’ model. This means the CryptoPunks and Meebits NFT collections will be a part of a more broad range of web3 projects and go beyond just being NFT collections. The utility and use cases of these collections will be more than the BAYC NFT collection and Yuga Labs seems to be committed to listening to the community and taking their feedback. BUIDLing with the community in a transparent manner might be a great marketing & product strategy because this will make the community feel more connected & invested with the projects. Whether this translates in real life as well as it sounds remains to be seen.
If they do succeed to position these collections separately, they will successfully achieve multiple things at once. Killing off competition to BAYC as now these NFT collections will be slotted for different uses and purposes and catapulting the overall development of the NFT industry will be their biggest wins. Having access to the largest NFT community in the world would also add immense value to Yuga Labs & cement its position as an industry leader who can single handedly define and shape the industry as it wishes.
To sum it up, Yuga Labs has taken the 1st step to give the NFT industry a much needed makeover where people will have to take note of the activity in the space. Let’s hope we see some major positives coming out of this event for the entire ecosystem as a whole. We will be keeping a close watch on this space and we hope so will be you.
Frequently Asked Questions
NFTs are Non-Fungible Tokens, and in layman terms, representing digital art or collection, video clips of best moments in the sports and entertainment field, gaming skins and collectibles, stored in a distributed ledger powered by blockchain technology. These are unique items and are not interchangeable with another NFT.
Generally, things are valuable when they are scarce. There is only one Mona Lisa. There are only 59 Le Bron James dunking NBA Top Shots (one of which sold for $US387,000).
The primary difference between the two is that unlike cryptocurrency and digital currency, NFTs cannot be traded for each other as they are unique. representations of real-world assets. Cryptocurrencies and digital currencies can be traded for each other as there will be no loss to their value.
An NFT is a unique digital signature that you can attach to an asset. Whether that’s a song, or an image, or a piece of footage, a unique digital signature is like a fingerprint that contains information like who created the asset, when, and any conditions on its future sale (for example, whether or not the creator gets a percentage of when it is on-sold).
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network.
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network. It is designed to play a vital role in the functioning of the bitsCrunch ecosystem and is intended to be solely used as the primary utility token on the network.
We are a Cross-functional team with more than 25+ years of experience in Data Analytics & Artificial Intelligence and Blockchain. We already have all the NFT data since its inception. We blend our AI expertise with the Blockchain to bolster the NFT ecosystem.
We have built a model to identify the impersonation of artworks, thereby preventing the Provenance of the artist and the artwork. We are offering our services in a SaaS manner, wherein the customers can stake a certain amount of our native tokens to avail our services.
We haven't launched our BCUT Token yet, but we will send out a confirmation on the launch of the token on our official website and official Telegram channel.