Yuga Labs Resets: From Metaverse Empire to ApeCore

May 25, 2025

From Bored Apes to Metaverse Missteps: The Rise, Peak, and Reset of Yuga Labs

How It All Began: The Bored Ape Yacht Club Phenomenon

In April 2021, an unassuming collection called Bored Ape Yacht Club (BAYC) entered the NFT scene. At first, minting was slow. Then, like wildfire, apes took over Twitter profile pictures and became digital identities.

From rainbow fur to laser eyes, each ape was unique—and members were more than collectors; they were part of a cultural movement.

The Power of Airdrops: Dogs, Mutants, and a Growing Ecosystem

Yuga Labs began expanding its universe with surprise airdrops. First came the Bored Ape Kennel Club—free dog NFTs for all ape holders. Then came the game-changing Mutant Ape Yacht Club, which introduced mutant serums and an entirely new NFT class.

The project didn’t just grow—it multiplied. The secondary market boomed.

ApeCoin: Tokenizing the BAYC Movement

In March 2022, ApeCoin ($APE) launched and was distributed to NFT holders via one of the largest airdrops in NFT history.

More than just “free money,” ApeCoin introduced a DAO, governance proposals, and dreams of Web3 utility. It was also the fuel behind the next phase: the metaverse.

Otherside Launch: The $300 Million Mint That Changed Everything

Shortly after ApeCoin dropped, Yuga Labs launched Otherside, their ambitious metaverse game. Minting Otherdeeds raised over $300 million in 24 hours—breaking records, crashing Etherscan, and sparking gas war chaos.

But the excitement gave way to delays. The metaverse never truly arrived.

ApeFest and the BAYC Lifestyle Movement

What began as an NFT project turned into a lifestyle brand. Events like ApeFest brought the digital community into the real world—with parties in New York, Lisbon, and Hong Kong featuring stars like Snoop Dogg and Eminem.

The community was vibrant, global, and connected.

Yuga Labs’ Empire-Building Phase: Acquisitions and Expansions

With a $450M funding round led by a16z, Yuga Labs reached a $4B valuation and went on a shopping spree:

Acquired CryptoPunks and Meebits from Larva Labs
Took over 10KTF, HV-MTLs, and Moonbirds
Partnered with Beeple’s creative studio

Yuga aimed to be the Disney of Web3.

Enter Daniel Alegre: A Gaming CEO Takes the Lead

In 2023, Yuga Labs brought on Daniel Alegre, former President of Activision Blizzard, to spearhead their gaming strategy.

Titles like Dookey Dash and The Forge followed, bringing short-term excitement but long-term confusion. Yuga’s product roadmap became fragmented, with too many assets and not enough clarity.

The Crash: Falling Floor Prices and Community Fatigue

NFT market downturns hit Yuga hard. BAYC’s floor dropped from over 150 ETH to below 15 ETH. Mutants, Otherdeeds, and even ApeCoin all lost significant value.

Critics pointed to overextension, lack of delivery, and dilution as major concerns.

Legal Woes: Lawsuits and SEC Investigations

Yuga’s journey wasn’t without controversy.

Ryder Ripps launched a parody collection, sparking lawsuits.
The SEC began investigating Yuga over potential securities violations.

These legal challenges further damaged sentiment and raised regulatory fears.

2024 Reset: Garga Returns, Alegre Exits

In early 2024, co-founder Garga (Greg Solano) returned as CEO, replacing Alegre.

Garga’s message was clear: “Let’s return to the roots.”
Yuga would slim down, stop chasing every trend, and focus on its original strength—the apes.