Yuga Labs, the creator of the iconic Bored Ape Yacht Club (BAYC) NFTs and ApeCoin, has acquired the tech team of Tokenproof, a Web3 tokenization service specializing in verifying NFT ownership in the real world. The acquisition aims to bolster Yuga Labs’ research and development (R&D) efforts in creating innovative NFT utilities.

Announced on December 3, Tokenproof’s founder and CEO, Fonz O, revealed the collaboration, emphasizing the long-standing partnership between the two companies since 2022. Yuga Labs co-founder Greg Solano highlighted their collective achievements, stating that Tokenproof helped address complex challenges, such as enabling BAYC holders to use their NFTs for real-world benefits like event access.

Tokenproof’s tech team will now integrate into Yuga Labs’ R&D division, The Workshop, which was launched in August amid company restructuring and layoffs. The division is focusing on projects like Otherside, Yuga’s gamified metaverse, while striving to make cryptocurrency tokens and NFTs more accessible and engaging.

The acquisition has received widespread support from the Web3 community, with developers praising Tokenproof’s contributions to enhancing NFT utility. Yuga’s strategic move comes during a volatile period for the NFT market. In November, monthly NFT sales hit a six-month high of $562 million, though significantly below the $1.6 billion peak in March 2024.

In contrast, crypto exchange Kraken recently announced the closure of its NFT marketplace, citing a shift in priorities toward other initiatives. Despite the market turbulence, Yuga Labs’ acquisition signals a commitment to advancing the NFT ecosystem and redefining its potential in the metaverse.