[US] Layoffs at Bored Ape NFT creator Yuga Labs as sector value plunges

In the US, the start-up behind the Bored Ape Yacht Club NFTs, Yuga Labs, has announced the elimination of a number of roles across its company as part of a restructuring of the business, Silicon Republic reports.

Daniel Alegre - Yuga Labs CEO - said in a team email that the layoffs are part of a strategy to update the start-up’s “core competencies” and readjust its focus. 

Mr Alegre reportedly stated that a number of company projects “either spread the team too thin or required execution expertise beyond our core competencies”.

“There have been a few rocky roll-outs, particularly in our gaming execution, because we learned along the way that we weren’t optimised to build and manage everything in-house, nor should we be,” Mr Alegre said.

It is not yet known the exact number of staff being cut by these layoffs, however, Yuga co-founder Greg Solano said in a post on X that the company still has more than 120 employees.

“We’ve been spread quite thin for a while as a company, and while there have been some wins, our execution in other areas hasn’t been up to our standards,” Mr Solano said.

Yuga Labs achieved rapid success in recent years as a result of the publicity and notoriety around its Bored Ape Yacht Club NFTs. The company subsequently reached a $4bn valuation following a $450m funding round in 2022, which was led by A16z crypto, Andreessen Horowitz’s crypto fund. But the company now reportedly seems to be trying to pivot to other projects such as metaverse-focused gaming in the wake of recent turmoil and scandals in this market.

A recent DappGambl report reveals that the market has shrunk massively compared to its peak. It further suggests that 95 per cent of NFTs on the market are now completely worthless. The weekly traded value in July 2023 was only 3 per cent of its peak in August 2021.

“This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space,” the report said. “Amid stories of digital art pieces selling for millions and overnight success stories, it is easy to overlook the fact that the market is fraught with pitfalls and potential losses.”

Source: Silicon Republic

(Links and quotes via original reporting)

In the US, the start-up behind the Bored Ape Yacht Club NFTs, Yuga Labs, has announced the elimination of a number of roles across its company as part of a restructuring of the business, Silicon Republic reports.

Daniel Alegre - Yuga Labs CEO - said in a team email that the layoffs are part of a strategy to update the start-up’s “core competencies” and readjust its focus. 

Mr Alegre reportedly stated that a number of company projects “either spread the team too thin or required execution expertise beyond our core competencies”.

“There have been a few rocky roll-outs, particularly in our gaming execution, because we learned along the way that we weren’t optimised to build and manage everything in-house, nor should we be,” Mr Alegre said.

It is not yet known the exact number of staff being cut by these layoffs, however, Yuga co-founder Greg Solano said in a post on X that the company still has more than 120 employees.

“We’ve been spread quite thin for a while as a company, and while there have been some wins, our execution in other areas hasn’t been up to our standards,” Mr Solano said.

Yuga Labs achieved rapid success in recent years as a result of the publicity and notoriety around its Bored Ape Yacht Club NFTs. The company subsequently reached a $4bn valuation following a $450m funding round in 2022, which was led by A16z crypto, Andreessen Horowitz’s crypto fund. But the company now reportedly seems to be trying to pivot to other projects such as metaverse-focused gaming in the wake of recent turmoil and scandals in this market.

A recent DappGambl report reveals that the market has shrunk massively compared to its peak. It further suggests that 95 per cent of NFTs on the market are now completely worthless. The weekly traded value in July 2023 was only 3 per cent of its peak in August 2021.

“This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space,” the report said. “Amid stories of digital art pieces selling for millions and overnight success stories, it is easy to overlook the fact that the market is fraught with pitfalls and potential losses.”

Source: Silicon Republic

(Links and quotes via original reporting)