Leadership Shakeup at Yuga Labs Amid NFT Market Slump; Crypto News Roundup
Summary:
Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) series, has undergone a leadership transition amid community backlash. Co-founder Greg Solano has resumed the role of CEO, replacing Daniel Alegre. Concurrently, crypto exchange-traded products have seen a surge in investor interest with assets reaching bull run levels. Binance has announced it will discontinue support for certain leveraged tokens, and Japan has greenlit strategic domestic investments into Web3 startups. Lastly, Polygon-based lending platform is looking to reinvent how luxury collectible item owners convert their assets into cash using blockchain technology.
Following weeks of negative community reaction and concern from investors, Yuga Labs, the company responsible for the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) series, saw a shift in leadership on February 21. The reins of the company have been handed back to co-founder Greg Solano, who has taken the post of CEO from Daniel Alegre. Solano's immediate task is ensuring the successful delivery of the third playtest, known as "Trip 3", of their upcoming metaverse project, Otherside. Back in January, a brief preview sparked doubt and heightened the scrutiny on the project’s development and its imminent playtest. Insider sources told Cointelegraph that the future success of Otherside and the related "Trip" is causing considerable uncertainty within the company.
Yuga Labs has been weathering an extended sluggish period for NFTs, with a noticeable market downturn evident when comparing current figures with the peak times of 2021 and 2022. Although, outlooks for 2024 hint at a possible revival, as innovative uses continue to appear, one of which is the deeper fusion of NFTs and gaming. Yuga Labs has heavily staked on this crossroads. Alegre, the former CEO, was once an executive at gaming colossus Activision Blizzard. A community member voiced his belief that the future of BAYC hinged on the success of Otherside. Trip 3, scheduled to take place on February 29 is predicted to be a key point in the long-term prosperity of Yuga Labs. Other topics of interest in this week's Crypto Biz include the closure of leveraged tokens by Binance, Japan's move to enhance Web3 fund-raising, and the noticeable increase in inflows into crypto-linked financial products.
Greg Solano, a key figure in the creation of the BAYC NFT collection, is the new CEO of Yuga Labs, taking over from Daniel Alegre. Under his guidance, the company will endeavor to extend the utility of BAYC through innovative practices and establish more partnerships, according to Solano. An "Apes Come Home" playtest event is slated to be hosted by Yuga Labs for Otherside later this month. Solano has guaranteed more communication surrounding the game for fans.
In another development, Crypto exchange-traded products (ETPs) have shown a notable increase this week, with their collective assets under management (AUM) reaching figures last seen during the high points of 2021's bull run. This surge can be largely attributed to the substantial $5.2 billion year-to-date inflows, spurred by favorable market tendencies. The fact that the week ending on February 16 saw record inflows of $2.45 billion mainly into US-based crypto ETPs, including newly approved spot Bitcoin ETPs, is noteworthy. BlackRock and Fidelity's ETFs have significantly contributed to this, accounting for almost $2.3 billion of the total, which highlights a dramatic rise in investor appeal towards crypto.
Binance has signaled its intention to halt support for certain leveraged tokens linked with key cryptocurrencies like Bitcoin (BTC), Ether (ETH), and BNB (BNB). The announcement, made on February 19, specifically pertains to leveraged tokens paired with Tether (USDT), including BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN. Trading and subscription services for these leveraged token pairs will be stopped on February 28 at 6:00 am UTC. All outstanding orders for the said tokens will be automatically revoked at this time, barring any more orders from being placed. Binance is advising users to transition any held leveraged tokens into other assets before the deadline to avert any potential loss. The company has not disclosed the reasoning behind the decision.
The Japanese government is making strategic moves to promote greater domestic investment into Web3 startups. This extends to allowing limited partnership (LP) firms to procure and retain crypto assets. To facilitate this, a bill was passed that incentives the creation of new businesses and industries via increased domestic investments. This amendment now permits LPs in Japan to invest into medium and small companies, along with startups, that deal with cryptocurrencies, bringing in a proportionate share of profit from the venture. Prior to the bill’s approval, venture capital firms in Japan were restricted from investing in crypto assets. The approval of the bill has led to anticipation within the local Web3 community for a growth in crypto and blockchain startups originated from Japan.
On a closing note, a lending platform based on Polygon seeks to revolutionize how owners of opulent collectible items liquidate their assets. The main idea is to use blockchain technology to bypass the usual liquidity hurdles. According to Davide Rovelli, collectors usually struggle to obtain fair value for their items due to low dealer offers or high fees. He advocates that blockchain technology can serve as an effective solution for these issues.
Published At
2/24/2024 12:30:00 AM
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