Yuga Labs, known as one of the largest studios creating non-fungible tokens (NFTs), is expanding its horizons by acquiring Proof, a competitor in this field, most notably known for its Moonbirds collection. Daniel Allegre, CEO of Yuga Labs, expressed his joy about Proof joining the Yuga ecosystem, emphasizing the company's commitment to protecting art, culture, and community through blockchain. The details of the deal are not disclosed, but it is known that despite their popularity, Moonbirds could not consistently compete in sales volume with Yuga Labs' Bored Ape Yacht Club collection.
Yuga Labs plans to integrate Moonbirds into its gamified metaverse Otherside, seeing significant potential in this collection and numerous points of intersection with the Otherside brand. Allegre expressed enthusiasm about incorporating PROOF Collective into the company's ongoing efforts to engage with art and the community.
NFT trading volumes have recovered since the end of last year but are still significantly below the peak levels of 2021 and 2022. While the monthly sales volume of NFTs from the Bored Ape Yacht Club sometimes exceeded $200 million, the trading volume of the Moonbirds collection in April 2022 nearly reached $500 million but then steadily declined to less than $5 million per month.
Kevin Rose, CEO and founder of Proof, will undergo a short transition period before becoming an advisor to the company. Yuga Labs will also take control of other Proof brands, including additional Moonbirds collections such as Oddities, Mythics, and Grails. Rose expressed excitement about the opportunity to introduce Moonbirds to Otherside, noting that the combined resources of both companies will accelerate innovation and expand audience reach.
In 2022, Andreessen Horowitz (a16z) led a $50 million fundraising round for Proof and also invested in Yuga Labs, highlighting the importance of synergy between these two leading players in the NFT industry.
