Now that Yuga Labs has sold the CryptoPunks IP, it’s a good time to look back at the full story. A journey we have been part of from the early days till today. We’ll discuss it all, ApeCoin, Lawsuits, Punks, and the Metaverse That Never Came
It All Started With Some Monkeys
In April 2021, a collection of cartoon apes dropped quietly into the NFT space. They were called the Bored Ape Yacht Club.
Minting was slow at first. A few early supporters minted apes, but nobody really knew what they were. Then, something shifted. Twitter caught on. Apes started showing up as profile pictures. And just like that, the rest sold out overnight.
Each ape had its own personality. Some wore 3D glasses. Some had prison jumpsuits or rainbow fur. They looked like memes. But they also felt like an inside joke. And people love being in on the joke.
BAYC quickly turned into a digital identity.
The First Airdrops: Dogs and Mutants
A few weeks after mint, Yuga Labs surprised everyone with an airdrop. Every ape owner could claim a free dog from the Bored Ape Kennel Club.
It was cute, unexpected, and fun. The dog NFTs even barked on OpenSea.
Next came something bigger: Mutant Ape Yacht Club. Yuga sent out mutant serums to ape holders. Drink the serum, and your ape mutated into something entirely new. Holders could keep their original ape and mint a mutant. Or they could sell the serum itself, often for crazy amounts.
On top of that, Yuga opened a public sale for fresh mutant apes. That raised around $96 million in minutes. And just like that, the ecosystem tripled in size.
Then Came ApeCoin: Free Money and Big Dreams
The ApeCoin airdrop in March 2022 changed everything.
Anyone holding an ape or mutant got a massive bag of tokens. Many woke up to find tens of thousands of dollars in their wallets. It was one of the biggest NFT-based airdrops ever seen.
But ApeCoin wasn’t just hype. It came with a DAO. Governance proposals. Treasury management. Staking. It was a coin with utility plans—and big ambitions to fuel the metaverse.
And speaking of metaverse…
The Otherside Mint: $300 Million in a Day
Shortly after ApeCoin, Yuga Labs launched Otherside—a massive metaverse game where all NFT holders could coexist.
They sold land in the form of Otherdeeds. The mint was one for the history books. It raised over $300 million in one day, crashing Etherscan and clogging the Ethereum network. Gas fees were brutal. Some people paid thousands just to mint.
But the excitement was real. Yuga showed off beautiful concept art and teased gameplay trailers. Ape holders dreamed of walking around a 3D world with their NFTs. The vision was there.
Unfortunately, the execution hasn’t caught up yet.
Since that record-breaking mint, Otherside has had a few demos. Some stress tests. A few playable days with avatars running around. We’re always joining them as they are fun, and we were part of the Guinness Book of Records event with the most online players to be live simultaneously.
But not much more.
No full launch. No real gameplay. Many are still waiting for something tangible. Others have moved on.
There is talk of a small live version launching this summer. It might be the spark the project needs. Or it might be too late. Either way, people are watching closely.
ApeFest: The Golden Days of BAYC
Let’s rewind to the fun stuff.
ApeFest was one of the highlights of BAYC culture. The first one was in New York. It featured free drinks, good vibes, and major artists like Eminem and Snoop Dogg performing live. Apes everywhere. Celebs were mingling with crypto nerds. Everyone felt part of something big.
After New York, the party went global. The next events happened in Hong Kong and Lisbon. The vibe shifted but remained strong. BAYC wasn’t just an NFT collection anymore. It was a lifestyle brand.
The next ApeFest is happening in Las Vegas this November. Will it bring back the spark? Or will it feel like a reunion of former rockstars? We’ll see.
The Money Behind the Monkeys
Yuga Labs didn’t just make waves. They made bank.
The company raised $450 million in a funding round led by a16z. This gave them a jaw-dropping $4 billion valuation.
The promise? Build the next Disney. Create a full Web3 empire. NFTs, games, metaverse, merch, events. Everything.
With that kind of money, they started acquiring.
First came the CryptoPunks and Meebits acquisition. Yuga bought both collections from Larva Labs. That shocked the space. CryptoPunks had been the OG NFT project. Now they belonged to the ape lords.
Later, Yuga acquired 10KTF, a storytelling project by Beeple’s creative studio, and Moonbirds, once a top-tier PFP collection.
Yuga was building a media empire. At least, that was the idea.
To help execute it, they brought in a heavy hitter.
New CEO, New Vision
In 2023, Daniel Alegre, the former President of Activision Blizzard, became the new CEO of Yuga Labs.
It was a massive hire. Activision is the company behind Call of Duty and World of Warcraft. This meant Yuga was going all-in on gaming.
At the same time, co-founder Gordon Goner stepped down due to serious health issues. It was the end of an era. And the beginning of a new one.
Yuga’s Gaming Push: Dookey Dash and The Forge
With Daniel at the helm, Yuga entered full gaming mode.
First came Dookey Dash. A fast-paced, browser game where holders used “Sewer Pass” NFTs to compete for a golden key. The winner? A 17-year-old gamer hired by NFT owners to play on their behalf.
Dookey Dash was a hit. It brought energy back to the ecosystem.
Then came The Forge, a crafting and collection-based game. It wasn’t as viral, but it introduced a whole new set of NFT assets. Yuga was building an arcade of sorts—each game rewarding holders with rare items and traits.
But then the mood started to change.
Prices Fell. So Did Sentiment.
NFT market conditions worsened. BAYC floor prices, once over 150 ETH, dropped dramatically. Mutants fell too. ApeCoin’s price declined. The once-hyped metaverse felt far away.
People grew impatient. They wanted delivery, not teasers.
Yuga’s projects felt scattered. Too many moving parts. Far too many collections. And too many games without depth.
Today, the floor of BAYC sits around 12 ETH, which is far from its glorious days.
FUD, Lawsuits, and the SEC
The noise got louder.
Ryder Ripps, a conceptual artist, launched a “copy” of BAYC to protest what he claimed were hidden messages and racist imagery. Yuga sued. He countersued. It became messy and public.
Then came regulatory heat.
The SEC began investigating Yuga Labs. The main question: were their NFTs and tokens unregistered securities?
No charges have been filed, but the investigation shook confidence.
Garga Returns: Back to the Core
In 2024, co-founder Garga (Greg Solano) returned as CEO. He replaced Daniel Alegre after a year-long stint.
The mission? Refocus the company.
Garga publicly stated that Yuga would stop trying to be everything. Instead, they would double down on their roots—the Bored Apes.
This meant some big changes.
CryptoPunks Sold. HV-MTLs Gone. Slimmer Yuga.
In 2025, Yuga Labs shocked the NFT world again.
They sold the IP rights for CryptoPunks. The collection that once symbolized Web3 prestige was no longer theirs. They also sold off 10KTF and other gaming-related assets, like HV-MTLs, to Faraway Gaming.
It was a clear signal. Yuga was done playing empire-builder.
They were getting lean. Returning to the apes. Fewer collections. Less overhead. Tighter focus.
So… What Now?
Yuga Labs isn’t dead. But it’s no longer the unstoppable force it once was.
The metaverse dream? Still alive, barely. The next Otherside release will be critical. ApeCoin still exists but lacks direction. The community remains—but it’s not what it was.
Still, apes remain the face of NFTs. And Yuga still has the most recognizable brand in the space.
Maybe that’s enough to build from again.
Final Thoughts
The rise of Yuga Labs was unlike anything we’ve seen in crypto.
From memes to millions. Turned from culture to courtrooms. And from a dog companions to $4 billion in valuation.
They made bold bets. Some paid off. Some didn’t.
They tried to be a gaming company, a metaverse builder, and an IP conglomerate. Now, they’re just trying to be Yuga Labs again.
Maybe that’s what the apes needed all along.
If you enjoyed this blog, you may want to check our story on Frank DeGods stepping down as CEO of his NFT collection.
As always, don’t forget to claim your bonus below on Bybit. See you next time!
