Deciphering the Metaverse: The evolution of protocol-level risk

A staple of common business practices is the acquisition of complementary companies. As part of an overarching strategy, the purchased business is usually absorbed with the intention of creating greater synergistic effects within the umbrella company in charge of conducting the takeover. Last week, the NFT market witnessed a collision of two giants, as Yuga Labs set a precedent by acquiring the CryptoPunks and Meebits IPs. With this seminal move, the Bored Ape Yacht Club creator has caused a seismic shift in how market participants conceptualize an NFT collection’s autonomy.

By the same token, the brand acquisition has also been accompanied by an immediate liberalization of commercial rights for CryptoPunk and Meebit owners, finally putting them on equal footing with Bored Ape owners in this regard. This coup has occurred at an opportune moment in time littered with controversy around Larva Labs’ supposedly too restrictive handling of commercial rights, thereby giving Yuga Labs the chance to revamp this approach.