Yuga Labs, the creators of NFTs like BAYC and Cryptopunks, has announced a mass layoff for the first time since its founding. The company will focus on the "Otherside" of its game metaverse, with additional alliances and partnerships. The company's CEO, Daniel Alegre, believes that NFTs with purpose, such as utility, gaming, or art, will succeed. The market is experiencing a decline in impulsive purchases and a lack of a sustainable profitable firm. The Otherside, according to Alegre, has the potential to be a multibillion-dollar venture, with blockchain gaming expected to generate $65.7 billion by 2027 and the metaverse $996 billion by 2030. With a proven track record in gaming, Yuga has promising future chances in the NFT industry.
This is the first time that Yuga Labs has declared a mass layoff since the company's founding. In Web3, Yuga labs is well-known. the organisation behind NFTs like BAYC, Cryptopunks, etc. Therefore, this trend is significant and demands a careful examination. The move, in my opinion, amplifies one point, namely that the NFT industry is evolving as we go into a new era of NFTs that are more relevant and/or provide value. Let's explore in depth.
The firm will concentrate on the "Otherside" of its game metaverse, said Daniel Alegre, the current CEO of Yuga Labs and a former executive from Activision Blizzard, in the layoff announcement. He made it obvious that they will focus much more on the gaming sector. They have a few additional alliances and partnerships aiming towards the Otherside in addition to a recent investment in the spatial computing company "Hadean".
For the past two years or more, many purchasers like myself have loved trying our luck with NFTs, but from the creators' point of view, this isn't a long-term monetization strategy that is viable. People won't make impulsive purchases as the market develops and grows, and they won't be an easy target for selling to third parties. Because of this, projects are unable to continue creating NFTs with solid economics. The NFT sales from January 23 to September 23 show an average monthly wash trading of 50%. View the price of more than 95% of the once high-quality NFTs; it is falling quickly. In this setting, it is impossible to develop a long-term, sustainably profitable firm.
NFTs that have purpose, such as those that are motivated by utility (in-real or virtual), gaming, or art, will succeed. PFPs and collectibles will continue to exist, such as Starbucks and Reddit, but speculative gambling with absurdly inflated NFT play will cease to exist. In my opinion, this represents where we are going and ushers in the new stage.
In light of this, it can be said that the Otherside, when it comes to Yuga, has the potential to be a multibillion-dollar venture. Blockchain gaming is expected to generate $65.7 billion by 2027, and the metaverse is expected to generate $996 billion by 2030. As a result, this might generate a more reliable source of income for a long period. Daniel has a proven track record in gaming, thus Yuga has promising future chances.
Here we are at the next stage of NFTs. What is your opinion?
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