Yuga Labs, a leading name in the NFT space, has initiated significant changes by transferring intellectual property (IP) rights for some of its most prominent collections, including CryptoPunks and Moonbirds. These moves come as the NFT market continues to face challenges, signaling a strategic shift for the company.

Yuga Labs Transfers CryptoPunks IP to Infinite Node Foundation

The IP rights for CryptoPunks, one of the most iconic NFT collections, have been handed over to the Infinite Node Foundation, a non-profit organization dedicated to preserving digital art. Reports suggest the deal may have been valued at approximately $20 million, a significant drop from the hype-driven prices seen during the NFT market’s peak. For context, a single CryptoPunk once sold for over $23 million in Ethereum (ETH).

Despite the transfer, Yuga Labs remains involved. According to Natalie Stone, general manager of CryptoPunks, Yuga still retains its rights under the standard IP license. Nicki Schiller, chief of staff at Yuga Labs, emphasized, “With Punks, we remain the largest holder and chose Node for their ability to steward the legacy — we’ll stay involved via the advisory council.”

Moonbirds IP Acquired by Orange Cap Games

In another notable move, Yuga Labs sold the IP for Moonbirds, along with its related spinoffs Mythics and Oddities, to Orange Cap Games, a relatively low-profile player in the NFT gaming space. Orange Cap Games has expressed its excitement about the acquisition, stating that the franchise has vast untapped potential. The company plans to introduce Moonbirds to new audiences while strengthening its connection with existing communities.

Orange Cap Games has already made a name for itself in the NFT gaming sector, particularly with its collectible card game, Vibes TCG, which is based on the Pudgy Penguins NFT collection. The studio is known for its meticulous attention to detail, from game design to physical product development.

Why Yuga Labs Is Making These Moves

The NFT market has significantly cooled compared to its peak. Trading volumes for top NFT collections have dropped by over 95%, according to industry data. Many once-hyped projects have shifted their focus to licensing deals, art exhibits, or physical merchandise to maintain relevance.

However, Yuga Labs insists that market conditions did not drive these decisions. Schiller clarified, “These deals weren’t driven by market volatility but instead reflected strategic clarity, not short-term conditions.”

The company’s new direction centers on its core projects, including the Bored Ape Yacht Club (BAYC), Otherside metaverse, and upcoming initiatives. Yuga Labs co-founder Greg Solano stated, “Moonbirds deserve a team whose whole world is the birds,” referencing Orange Cap Games’ capabilities to take the franchise forward successfully.

The Legacy of CryptoPunks

Created in 2017 by Matt Hall and John Watkinson of Larva Labs, CryptoPunks became one of the earliest and most iconic NFT collections. The 10,000 24×24 pixel characters quickly transcended their status as digital art, becoming cultural symbols and collectors’ items. Long before the BAYC dominated social media, CryptoPunks were being auctioned at prestigious venues like Christie’s.

Infinite Node Foundation intends to honor this legacy. The foundation has plans to establish a permanent exhibit space in Palo Alto and showcase the entire 10,000-piece collection at the Toledo Museum of Art. Micky Malka, chair of the Infinite Node Foundation, remarked that CryptoPunks “sparked a cultural movement” and aims to make the collection more accessible to scholars, curators, and collectors.

Yuga Labs’ Future Focus

As Yuga Labs moves forward, its focus remains on expanding the Otherside metaverse and enhancing the BAYC ecosystem. Schiller confirmed that the “persistent Otherside experience begins this summer, marking a major new phase in the project.” Additionally, she hinted at upcoming developments related to ApeFest and a long-awaited real-life Clubhouse.

While some in the NFT community view these asset sales as a strategic retreat, others see them as a sign of maturity in the market. The NFT space may no longer be defined by speculative hype, but it continues to evolve, with a focus on sustainability, utility, and cultural impact.

The NFT market is quieter than it once was, but it remains a space filled with opportunity. Whether through art preservation, gaming innovation, or metaverse development, the next chapter for NFTs is already being written, and Yuga Labs appears poised to play a central role in shaping its future.

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