Yuga Labs Completes Restructuring Amid Industry Challenges
Yuga Labs, the company behind the popular nonfungible token (NFT) project, Bored Ape Yacht Club (BAYC), has successfully completed its restructuring process in response to ongoing challenges in the industry. CEO Daniel Alegre announced on X (formerly Twitter) that the restructuring, which was announced in early October, has been finalized.
Prioritizing Otherside Metaverse Project
Alegre stated that the company will now focus on refining its new team configurations and prioritizing the execution of Otherside, a gamified and interoperable metaverse project that Yuga Labs began in March 2022. He emphasized that building an immersive metaverse platform is a challenging task both technically and creatively.
Restructuring Announcement by Co-founder
Co-founder Greg Solano had previously announced the company’s restructuring on October 6, explaining that changes were necessary for long-term success. Solano did not disclose the number of employees affected by the restructuring but mentioned that Yuga Labs still has over 120 employees and is focused on specific priorities.
Treating Departing Employees with Respect
Alegre assured that his top priority during the restructuring was to ensure that departing employees were treated with respect and gratitude. Yuga Labs offered a transition package that included generous severance, Consolidated Omnibus Budget Reconciliation Act coverage, and assistance in finding new job opportunities. The impact of the restructuring on international teams is currently being reviewed.
Trademark Lawsuit and Class-Action Lawsuit
An appeals court in the United States expressed skepticism about Yuga Labs’ trademark lawsuit against artist Ryder Ripps over his copies of BAYC NFTs. Additionally, a group of BAYC investors filed a class-action lawsuit against Yuga Labs and Sotheby’s auction house, alleging deceptive promotion of the NFT collection.
Hot Take: Yuga Labs Adapts to Industry Challenges
Yuga Labs has successfully navigated the challenges in the NFT industry by completing its restructuring process. With a focus on the Otherside metaverse project, the company aims to build an immersive platform while acknowledging the technical and creative difficulties involved. The priority throughout the restructuring has been to treat departing employees with respect and provide them with support. However, Yuga Labs still faces legal battles, including a trademark lawsuit and a class-action lawsuit filed by BAYC investors. Despite these challenges, Yuga Labs remains committed to its long-term success in the evolving NFT landscape.
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