Yuga Labs undergoes leadership change as Greg Solano takes over as CEO, focusing on the Otherside playtest. Crypto Biz also covers record-breaking crypto ETP inflows, Binance discontinuing leveraged tokens, and Japan's Web3 investments.
The recent upheaval within Yuga Labs concluded on February 21 with a change in leadership, addressing concerns from both the community and investors regarding the firm behind the popular Bored Ape Yacht Club (BAYC) nonfungible token (NFT) collection.
In a significant shift, Yuga Labs co-founder Greg Solano has reassumed the role of CEO, replacing Daniel Alegre. Solano is now tasked with steering the company through the delivery of the third playtest for its metaverse project, Otherside.
A source familiar with the matter revealed that a short trailer in January triggered criticism and raised doubts about the project's progress. This intensified the scrutiny on the upcoming 'Trip 3' playtest, generating uncertainty about the leadership's ability to ensure the success of Otherside.
Yuga Labs has faced challenges during the prolonged crypto winter for NFTs, experiencing a notable market downturn compared to the peak periods of 2021 and 2022. However, forecasts for 2024 suggest a potential rebound as new use cases, such as closer integration of NFTs into gaming, continue to emerge.
The company placed a significant bet on this convergence, especially with Alegre, a former executive at gaming giant Activision Blizzard, leading the charge. A community member emphasized, 'Everything they are doing is about Otherside,' highlighting the pivotal role of the metaverse project in the fate of BAYC.
As Yuga Labs prepares for the Otherside Trip 3 scheduled for February 29, the outcome of this playtest could be a decisive milestone in determining the company's long-term success.
In addition to the Yuga Labs developments, this week's Crypto Biz also delves into Binance's decision to shut down leveraged tokens, Japan's initiative to boost Web3 fundraising, and the increasing inflows into crypto-tied financial products.
The reshuffling of leadership at Yuga Labs sees BAYC co-creator Greg Solano taking over as the new CEO. Solano expressed his commitment to enhancing BAYC's utility by fostering creativity and re-establishing a focus on building partnerships. Yuga Labs plans to host an 'Apes Come Home' playtest event later this month for Otherside, with Solano promising increased communication around the game in the future.
On a broader market note, a record week of inflows for crypto exchange-traded products (ETPs) has propelled their combined assets under management (AUM) to levels reminiscent of the last bull market peak in 2021. CoinShares attributes this surge to $5.2 billion in year-to-date inflows, with a noteworthy $2.45 billion pouring in during the week ending February 16, primarily into United States-listed crypto ETPs.
Binance has also made headlines by announcing the discontinuation of support for certain leveraged tokens associated with major cryptocurrencies like Bitcoin, Ether, and BNB. The decision affects leveraged tokens paired with Tether (USDT), and Binance advises users to convert any held leveraged tokens into other assets before the February 28 deadline to avoid potential losses.
Meanwhile, the Japanese government is opening up opportunities for local venture capital firms to invest in Web3 startups by allowing limited partnership (LP) firms to acquire and hold crypto assets. The move is aimed at promoting the creation of new businesses and industries by amending key acts, including the Act on Investment Limited Partnership Agreements.
In summary, amidst the dynamic landscape of the crypto industry, Yuga Labs' leadership change and the upcoming Otherside Trip 3 playtest take center stage, while broader market trends include record inflows into crypto ETPs, Binance's decision to shut down certain leveraged token services, and Japan's strategic move to encourage domestic investments in Web3 startups.