Yuga Labs Sells CryptoPunks IP to Infinite Node Foundation

Yuga Labs, the innovative company behind the Bored Ape Yacht Club (BAYC), has offloaded the CryptoPunks NFT collection from its portfolio. As reported by The Block, Yuga Labs offloaded the CryptoPunks to the Infinite Node Foundation (NODE), a nonprofit that focuses on protecting digital art.

Benefits of Yuga Labs’ CryptoPunks Sale

Notably, this sale follows community criticism of Yuga Labs’ recent project and concerns about how they manage the CryptoPunks brand. Likewise, the sale marks a huge change in the CryptoPunk NFT ownership. While the details of the deal are not public, Yuga Labs said the sale aims to protect and maintain the cultural significance of the CryptoPunks series for the long term.

Meanwhile, NODE acquired CryptoPunks to secure its future as a public digital art asset. They plan to work with major museums and art institutions worldwide. The foundation aims to include NFTs in global art spaces, showing that they are not just collectibles but also part of contemporary art history.

Notably, NODE is creating an advisory council to help guide its management. This council will include Matt Hall and John Watkinson, co-founders of Larva Labs, Wylie Aronow, founder of Yuga Labs, and Erick Calderon, founder of the generative art platform Art Blocks. The council will provide guidance and oversight as NODE works to keep the collection’s cultural integrity intact.

Yuga Labs’ Dominance

Yuga Labs acquired the IP rights to 423 CryptoPunks NFTs from Larva Labs in March 2022 for an undisclosed amount. At that time, the collection’s floor price was around 65ETH. Despite a 37% decline in ETH-dominated floor price since then, the value of Ether has risen over 24%, providing some cushion to the collection’s overall valuation.

Recall that the floor price of CryptoPunks spiked 13% within three hours on January 14. This spike came amidst rumors that Yuga Labs plans to sell the IP rights associated with the collection. 

It is worth noting that Yuga Labs has remained a key player in the NFT ecosystem. BAYC holds the third position in market value among NFTs, further cementing Yuga’s dominance. In February 2024, Yuga Labs saw a leadership change as co-founder Greg Solano returned as CEO, replacing Daniel Alegre. Solano’s tenure included a series of layoffs, restoring the company’s creative-first ethos amidst shifting market dynamics.

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