Yuga Labs Lets Go of Moonbirds, Citing Need to Prioritise Apes, Otherside, and a New Secret Project

Yuga Labs Narrows Its Focus Amid IP Sell-Off

Yuga Labs is stepping back from its broader NFT holdings, shedding several key intellectual properties acquired over recent years.

The crypto firm, famed for the Bored Ape Yacht Club and the long-awaited metaverse game Otherside, has recently parted with the Moonbirds collection, transferring ownership to Orange Cap Games.

Why Is Yuga Labs Letting Go of Moonbirds?

Moonbirds, acquired in early 2024 through Yuga’s purchase of Proof Labs, has now been sold to Orange Cap Games.

Greg Solano, Yuga’s cofounder, explained the move, stating:

“Moonbirds deserve a team whose whole world is the birds, and there’s no one better than Orange Cap Games to help them reach their potential.”

This sale aligns with Yuga’s intent to concentrate efforts on its flagship projects — Apes, Otherside, and an undisclosed venture Solano described as “something special we’ve been cooking up.”

Orange Cap Games, known for its Pudgy Penguins-themed trading card game Vibes, may develop gaming features for Moonbirds.

Despite the transfer, Moonbirds will remain integrated into the Otherside metaverse, with any new assets hosted on Ethereum or Yuga’s layer-2 ApeChain network.

Is Yuga Labs Pulling Back on Other NFT Projects?

This move follows a series of recent divestitures.

Last year, Yuga sold the IP rights to games HV-MTL and Legends of the Mara.

In early 2025, the company also offloaded Meebits to MeebCo and transferred CryptoPunks to a California-based nonprofit planning to display the NFTs as art.

Such actions suggest Yuga is focusing on core assets, potentially scaling back after ambitious expansion.

When asked about the possibility of further reductions, especially regarding the Apecoin DAO, Solano emphasised a ruthless approach to cutting “cruft,” adding:

“At the end of the day, I just want apes and our core to fucking win.”

Co-founder Wylie Aronow echoed this sentiment, suggesting the DAO experiment may be over due to evolving US regulations.

Otherside Launch Looms After Years of Anticipation

Yuga Labs has promised a “persistent” version of Otherside by June 2025, hinting at an imminent launch.

The metaverse game has been in development for several years and made headlines with its 2022 “Otherdeed” virtual land mint, which raised $561 million in a single day.

The event sparked heavy network congestion and exorbitant gas fees, with some users paying thousands of dollars in Ethereum fees alone.

Legal Troubles and Market Realities Shape Strategy

Yuga remains entangled in a 2022 lawsuit alleging it participated in a “vast scheme” to sell unregistered securities, a case that involves multiple defendants, including celebrities and crypto firms.

Meanwhile, NFT markets have seen fluctuating fortunes.

Moonbirds, initially minted at 2.5 ETH (approximately $7,600 then), have dropped significantly from a 38.5 ETH peak in April 2022 but recently rose by 40% over four days to 0.9 ETH ($2,290).

NFT Market Shows Signs of Recovery

Despite Yuga’s retrenchment, the NFT market appears to be recovering.

Unique buyers increased by 50% in May 2025 to 936,000, with total trading volume rising to $430 million, a 15% rise from April.

Industry collaborations, like Disney’s recent partnership with Dapper Labs to offer digital pins to Disney+ subscribers, suggest renewed interest in NFT-based rewards.

Yuga Labs’ recent moves reflect a strategic narrowing of focus, emphasising key assets and preparing for Otherside’s launch while stepping away from some of its earlier expansive acquisitions.