Orange Cap Games has announced the successful completion of a $3.5 million seed funding round, led by 1kx and Yuga Labs. This funding represents the company’s second investment round, following an earlier $2 million raise involving key opinion leaders, crypto-native investors, and experts from the collectibles and web3 industries. The new capital will support the continued development of Orange Cap Games' core projects, particularly its efforts to expand the Vibes trading card game (TCG) and integrate the recently acquired Moonbirds intellectual property.

Orange Cap Games Raises $3.5 Million

Acquisition of Moonbirds

The funding round closely follows Orange Cap Games’ acquisition of the Moonbirds intellectual property from Yuga Labs. The deal, confirmed on May 30, includes the Moonbirds, Mythics, and Oddities NFT collections. The transfer is part of a broader reorganization by Yuga Labs, which is narrowing its focus to concentrate on its central projects such as the Bored Ape Yacht Club and the Otherside metaverse.

Moonbirds originally launched in April 2022 and quickly attracted attention in the NFT space, generating over $280 million in combined primary and secondary sales during its first weekend. In early 2024, Yuga Labs acquired Moonbirds and its creator Proof, bringing Proof’s founder Kevin Rose on board as an advisor. Rose, known for his earlier role as co-founder of Digg, was a key figure in the early development and popularity of the Moonbirds collection.

Orange Cap Games Raises $3.5 Million

Yuga Labs Refines Focus with Strategic Divestments

The decision to sell Moonbirds aligns with Yuga Labs’ strategy of streamlining its portfolio to enhance operational efficiency and allocate resources to its most recognized assets. Alongside the Moonbirds transaction, Yuga Labs has transferred other intellectual properties as part of this restructuring. The CryptoPunks IP was handed over to the Infinite Node Foundation, a nonprofit organization, while the Meebits collection was sold to a separate entity called MeebCo.

Yuga Labs CEO Greg Solano noted that Orange Cap Games has demonstrated a strong understanding of both consumer crypto behavior and digital asset management. He expressed confidence that Moonbirds would benefit from being overseen by a company with a focused interest in its development, particularly within the context of web3 gaming.

Orange Cap Games Raises $3.5 Million

Plans for Moonbirds Integration into Ecosystem

Orange Cap Games is known for its work in both physical and digital trading card games. Its main product, Vibes TCG, is based on the Pudgy Penguins NFT collection and is developed on Abstract, an Ethereum layer-2 network. With the acquisition of Moonbirds, the company plans to expand its offerings, though specific new products have not yet been announced.

According to Orange Cap Games, future digital assets related to the Moonbirds collection may be launched on a layer-1 blockchain or on ApeChain, an Ethereum layer-2 network associated with Yuga Labs. Additionally, Moonbirds characters are expected to be integrated into the Otherside metaverse game, allowing for broader engagement across different web3 gaming platforms.

Orange Cap Games Raises $3.5 Million

Broader Trends in the Web3 Gaming Industry

The partnership between Orange Cap Games and Yuga Labs reflects a shifting landscape in the web3 gaming and NFT sectors. As the market matures, companies are increasingly moving away from rapid expansion in favor of more measured, strategic growth. This includes concentrating on fewer projects that offer stronger community engagement and long-term brand development.

For Yuga Labs, this shift involves focusing resources on a smaller number of projects that have demonstrated resilience and recognition in the evolving web3 environment. For Orange Cap Games, the Moonbirds acquisition represents a step toward becoming a more prominent player in web3 gaming by developing immersive experiences around well-known digital assets.