Yuga Labs Faces Community Backlash Over Potential CryptoPunks IP Sale
Rumors of a potential sale of CryptoPunks intellectual property rights by Yuga Labs have sparked intense discussion in the NFT community and led to significant market movement. The floor price of CryptoPunks NFTs rose 13% from 36.6 to 41 ETH (about $130,000) within three hours after the news broke.
The speculation began on January 14 when Azuki researcher Wale.moca posted on X that "several sources close to the matter" suggested Yuga Labs might be selling the CryptoPunks IP. While the potential buyer remains unknown, Wale.moca stated it is neither a major Web2 brand nor an established NFT company like Pudgy Penguins, Azuki, or Doodles.
Yuga Labs co-founder Greg Solano addressed the rumors on X, acknowledging that many parties have shown interest in recent months. "Doesn't mean we are doing anything," Solano wrote, adding that any potential deal would need to ensure long-term benefits for CryptoPunks. He stressed that he wouldn't "take a deal for money if I feel like it hurts the legacy of this asset."
The CryptoPunks collection maintains its position as the top NFT project by market cap, valued at $1.3 billion. This is nearly double the value of second-place Pudgy Penguins at $706.9 million. In the past 24 hours alone, 16 CryptoPunks sold for 676 ETH ($2.18 million).
Community reactions have been mixed. NFT collector Adam Smoot pointed out that the CryptoPunks IP has changed hands multiple times with varying promises. Another community member, StarPlatinum, suggested that under Yuga Labs' ownership, "CryptoPunks IP seems to have lost direction." However, NFT collector Dheeraj Shah told Cointelegraph that many appreciated Yuga's hands-off approach after acquiring the IP in March 2022.
A new proposal by Electric Capital managing partner Avichal Garg suggests transferring the CryptoPunks IP to a DAO. The plan would involve capitalizing the DAO through a token sale and using funds for licensing deals, museum placements, and co-branding efforts, with revenue shared between token and NFT holders.
