Yuga Labs has officially sold the Moonbirds intellectual property to Orange Cap Games, a web3 gaming startup. The acquisition includes the Moonbirds, Mythics, and Oddities NFT collections and was confirmed on May 30. This decision follows Yuga Labs’ broader strategy to concentrate on its core projects, including the Bored Ape Yacht Club and the Otherside metaverse.

The Moonbirds collection initially launched in April 2022 and quickly attracted significant attention, generating over $280 million in primary and secondary sales during its first weekend. In early 2024, Yuga Labs had acquired Moonbirds and its original creator, Proof, as part of a deal that brought Digg co-founder Kevin Rose into the company as an advisor. Rose had previously led Proof and was instrumental in Moonbirds’ early success.

Yuga Labs Sells Moonbirds NFT Collection

Yuga Labs Sells Moonbirds

The sale of Moonbirds reflects Yuga Labs’ strategic decision to reduce its portfolio and concentrate on developing its most prominent assets. In addition to this deal, Yuga Labs recently transferred the intellectual property rights of other notable NFT projects. The CryptoPunks IP was handed over to the Infinite Node Foundation, a nonprofit organization, while the Meebits collection was sold to a new company called MeebCo.

Yuga Labs CEO Greg “Garga” Solano described Orange Cap Games as a capable and focused team with a strong understanding of consumer crypto and digital asset management. He noted that Moonbirds would benefit from a company with a dedicated interest in advancing its creative and commercial potential. Solano’s statement underscored the belief that Orange Cap Games is positioned to take the collection forward in a direction that aligns with its web3 gaming ambitions.

Yuga Labs Sells Moonbirds NFT Collection

Orange Cap Games to Expand Moonbirds Universe

Orange Cap Games is best known for its work in digital and physical trading card games. Its debut project, Vibes TCG, is based on the Pudgy Penguins NFT collection and operates on Abstract, an Ethereum layer-2 network. The acquisition of Moonbirds marks a significant step in expanding the company's offerings.

While specific product plans have not yet been announced, Orange Cap Games confirmed that any new Moonbirds-related digital assets will likely be launched on either a layer-1 blockchain or ApeChain, an Ethereum layer-2 network developed by Yuga Labs. Additionally, the studio stated that Moonbirds characters will appear in Yuga Labs’ upcoming Otherside metaverse game, creating potential for deeper cross-platform integration within the web3 gaming ecosystem.

Yuga Labs Sells Moonbirds NFT Collection

Evolving Strategies in the Web3 Gaming Sector

The transaction between Yuga Labs and Orange Cap Games highlights a larger pattern in the NFT industry. As the market matures, companies are increasingly choosing to focus on a smaller number of projects that show long-term viability. This approach reflects a shift away from rapid expansion toward sustainable development centered on brand strength and community engagement.

For Yuga Labs, this means consolidating efforts around its most recognizable properties, including the Bored Ape Yacht Club and the Otherside. By reducing the number of projects under its direct management, Yuga Labs aims to improve operational efficiency and deliver more focused development across fewer platforms.

Yuga Labs Sells Moonbirds NFT Collection

New Ownership Brings New Possibilities

The future of the Moonbirds collection under Orange Cap Games presents a mixture of opportunity and change for current holders. With its emphasis on game development and interactive experiences, Orange Cap Games may look to extend Moonbirds beyond its original concept as a profile picture (PFP) collection. The studio’s background in trading card games and on-chain gaming suggests that new formats and use cases for the Moonbirds intellectual property are possible.

Following the public announcement of the acquisition, Moonbirds NFTs experienced a significant price movement. The floor price increased from 0.295 ETH to 0.9 ETH, suggesting a positive initial response from the market. This reflects cautious optimism that Orange Cap Games will bring renewed energy and purpose to the collection.

Yuga Labs Sells Moonbirds NFT Collection

Final Thoughts

Moonbirds was one of the most prominent NFT projects during the height of the 2022 NFT boom. However, the market downturn that followed placed pressure on its original developer, leading to its sale to Yuga Labs in 2024. Now, in a relatively short period, the collection has changed ownership again, this time moving to a company with a defined focus on web3 gaming.

As Orange Cap Games takes over the development and management of the Moonbirds, Mythics, and Oddities collections, both the company and the broader blockchain gaming industry will be watching closely. The integration of established NFT collections into gaming environments represents a developing area of innovation, one that could shape the future use and value of digital assets across platforms.