Yuga Labs, the mastermind behind the immensely popular Bored Ape Yacht Club (BAYC) nonfungible token (NFT) project, has successfully completed its restructuring efforts, redirecting the company’s resources toward its ambitious metaverse endeavor, Otherside. CEO Daniel Alegre announced the finalization of the restructuring, underscoring the company’s unwavering commitment to constructing an immersive metaverse platform and ensuring support for departing team members.
Yuga Labs initiated the restructuring process in early October, recognizing the evolving challenges within the NFT industry. Co-founder Greg Solano, in an announcement on October 6, stated that the restructuring aimed to position the company for long-term triumph. Although specific details regarding the number of affected employees were not disclosed, the company remains a dominant force in the industry, boasting a workforce of over 120 professionals.
Alegre emphasized the significance of this restructuring, highlighting the company’s renewed dedication to their metaverse project, Otherside. Launched in March 2022, this ambitious venture envisions a gamified and interoperable metaverse experience.
In his announcement, Alegre emphasized the intricacies involved in developing an immersive metaverse, citing both technical and creative obstacles. He expressed unwavering confidence in the potential of Otherside, stating:
“This strategic shift exemplifies the company’s determination to navigate the dynamic landscape of the NFT and metaverse industries while delivering groundbreaking experiences to its community.”
Throughout the restructuring process, Yuga Labs placed utmost importance on the well-being of its departing team members. Alegre assured that those leaving the company would be treated with respect and gratitude. The transition package offered by Yuga Labs includes generous severance benefits, Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage, and assistance in finding new job opportunities.
Alegre acknowledged the challenging times faced not only by the industry but also by the global economy, reflecting the company’s commitment to handling the transition with utmost sensitivity.
The announcement coincides with Yuga Labs’ ongoing legal battles. On October 16, a U.S. appeals court expressed skepticism regarding the attempt to dismiss Yuga Labs’ trademark lawsuit against artist Ryder Ripps over his copies of BAYC NFTs. This legal dispute serves as a testament to the company’s dedication to safeguarding its intellectual property rights in the ever-evolving realm of NFTs.
In addition to the trademark lawsuit, Yuga Labs faced a class-action lawsuit in August 2023, where a group of BAYC investors alleged that Yuga Labs and fine arts auction house Sotheby “misleadingly promoted” the NFT collection. These legal matters are being closely monitored by industry observers.