Dear Students,

Welcome to the 8th edition of Professor's Yuga Newsletter! It's amazing how much can happen in just one week. I often find it challenging to decide what to include in this newsletter because there's always so much going on.

In every edition, I also share some thoughts and ideas from my end. They're usually inspired by real-world events, but in the end, they're just my musings. This time, the article "Will Epic Games Buy Yuga? A Bold Vision" is a perfect example. There are no concrete facts or rumors to support such ideas; it's purely a product of my imagination. So, don't take it too seriously, but I hope you enjoy the entertainment!

Wishing you all a fantastic Sunday and an even more beautiful week ahead.

Yours, Professor

P.S. If you're interested in an analysis of the anime and manga market, I've just created and published a free report with over 20 pages of insights. Whether you find it useful for your business or just intriguing, you can download it here:

Exciting Weekly Stats

The past week has been quite interesting for Yuga, and the numbers reflect that.

Here's a simple breakdown:

First, let's look at the big picture. The overall NFT market is worth around 2.67 million ETH, which is down by about 0.8% compared to last week.

The whole NFT world is feeling the effects of a bear market, which means prices are down.

But here's the good news: Despite these challenges, Yuga has managed to increase its market value by about 1.09% and reach 897 715,16 eth.

Yuga’s share of the market is about 33.59%, and that's been pretty stable for a while. These are positive signs for Yuga.

Now, let's talk about Yuga's collections. Since April, the value of Yuga’s collections has dropped by about 50% if we analyse Yuga’s price index (without 10ktf).

But in the past week, we've seen a small increase of about 1.1%. It's too early to say if this is a trend, but it's a good sign, especially after starting LOTM.

Some winners from the past week are Otherdeeds, and there was a little surprise with the Mara collection.

When it comes to unique holders there was a slight decrease of about 0.65% in the past week. This means we lost some unique holders.

In terms of unique wallets, we saw a decrease of about 0.35%, which is about 163 wallets across all collections. Right now, there are a total of 45,752 unique wallets, and 15,584 of them are in BAYC, MAYC, and BACK (membership collections).

These numbers don't reflect the effects of the recent restructuring of Yuga and its strategic investment. I expect to see some influence and more positive changes in the coming weeks.

News

Tickets for ApeFest Kick-Off

Get ready for a fantastic start to Apefest in Hong Kong with six exciting Haype Hour parties on November 3rd. To ensure that these parties are organized to perfection, ticket holders are invited to share their preferences for each event.

Defining your preferences is easy; simply use the TokenProof app to communicate your choices. The deadline for submitting your preferences is November 13th.

Mark your calendars, as tickets will be available starting November 20th

Yuga invests in Hadean

Yuga Labs has just announced a strategic investment in Hadean, a spatial computing company. What does this mean? Let's break it down in simple terms:

1. Help Yuga Labs grow: Yuga Labs is investing in Hadean to help them build a team in the US. This team will help Yuga Labs use Hadean's technology to implement Otherside. I see this as an exchange for Improbable technology, although it was never communicated as such by Yuga.

2. Building great virtual experiences: Yuga Labs and Hadean announced the partnership just a few weeks before this announcement. They agreed to work together on the Otherside project. This investment shows that they're serious about this partnership and that it might be more than just a partnership.

3. Exciting future: Hadean's technology is really innovative and I see it as very interesting for Otherside. I think with Hadean there is an exciting future for Yuga's Metaverse.

Yuga Labs CEO Daniel Alegre is very excited about this and thinks it's a great step forward. He says, "We are working together to make the interactive possibilities of Otherside a reality".

Hadean's CEO, Craig Beddis, is also excited about this partnership. He believes that virtual worlds can improve our lives, and this investment will help them do just that.

In short, Yuga Labs and Hadean are joining forces to create amazing virtual experiences for all of us. Exciting times ahead!

A Community Member's Tale: Meet the Remarkable Phatfinger.eth

Allow me to introduce you to an extraordinary community member, Phatfinger.eth, or known in real life as Gregory Reveret, a Film Composer hailing from Los Angeles. You might recognize his work, as he's the genius behind the soundtrack for renowned films like "Resident Evil" and he worked also on "Fast and the Furious 7," not to mention his contributions to "Avengers: Age of Ultron" and many other cinematic gems.

Recently, Gregory accomplished something truly exceptional. He composed an outstanding musical piece for Yuga's Otherside Trailer, orchestrating an ensemble that produced enchanting melodies.

The result? A truly magical auditory experience that's bound to captivate your senses.

Don't miss out on the enchantment – listen for yourself:

Bring Your CryptoPunk to Life on Paper for $640

On October 26th, a „unique opportunity“ awaits: the chance to immortalize your CryptoPunk in physical form.

But act fast, as this exclusive 48-hour printing window will be your only chance. (!?! some printers are working just 48h !?!)

Here's the deal: Each of the 10,000 distinctive CryptoPunks NFTs can be transformed into a one-of-a-kind print, complete with authentication through a QR code linked to the corresponding CryptoPunks NFT. Crafted by the skilled master printmakers at Avant Arte in London, these made-to-order artworks come at a cost of only $640 for interested Punk holders.

Alternatively, there's the "10,000 On-Chain" option, which consolidates all Punks onto a single 60-by-60 sheet, accessible to anyone with an internet connection and only $500 to spare.

While some might consider this a DIY endeavor, what you're truly investing in is the artistic craftsmanship and reputation of Avant Arte.

(Irony off)

To gauge its value, I delved into Avant Arte's background and found it to be a contemporary art marketplace (only :-)).

Beyond this, there's little else that seems to justify the price tag.

In essence, it's important to question whether this venture truly adds value or simply extracts funds from punk holders.

An Interview with Daniel Alegre, CEO of Yuga Labs

Just a few weeks ago, Daniel embarked on a tour across Asia, making appearances at various conferences as a featured speaker and engaging with communities across the region. His journey also brought him to Seoul for the Korean Blockchain Week, where he continued to connect with industry enthusiasts.

During this eventful tour, Daniel sat down for an illuminating interview with the event organizers. He delved into topics such as NFTs and digital identity, strategies for entering the NFT market, and emerging trends in the NFT space.

Curious to gain interesting insights from Yuga’s leader? Watch the full interview on YouTube:

Yuga's Restructuring

Yuga Labs has just announced a major internal restructuring, and the CEO, Danile, has shared a heartfelt email explaining the necessity of employee layoffs.

Garga, one of the founders, later elaborated in a post that this phase will ultimately reduce the workforce to around 120 employees.

The primary driver behind this strategic shift is a renewed focus on Yuga's core competencies.

Several factors have contributed to this decision, including the need to streamline resources, eliminate redundancies resulting from mergers and acquisitions, challenging market conditions, and the financial performance of developed games.

While these changes may be difficult, they reflect the evolving landscape of the industry and Yuga's commitment to adapt and thrive. Our thoughts go out to those affected by these layoffs, and we wish them the best during this transitional period.

Book review

Bored Apes: Unveiling the Underbelly of Underground Art

The '2023 Underground Art Market Report' isn't your typical scientific or official art assessment. It's the brainchild of Anna D. Smith, a Fine Art and Real Estate Broker, and it offers a unique perspective on a niche art culture known as Underground Art. Drawing heavily from internet resources, particularly Pinterest statistics, Anna crafts an intriguing glimpse into this artistic subculture.

Underground art, as per the Tate Museum, encompasses any art form that defies conventional norms within the art world. This realm includes subcultures like graffiti and comic strip art.

Anna kicks off her report by defining the dimensions of the underground art market. It's fascinating to note that the underground art market comprises a mere 10% of the entire contemporary art market. This amalgamation of artistic genres, such as graffiti art, prison art, street art, comic strips, graphic novels, digital art, and NFTs, forms the crux of underground art. What's even more noteworthy is the growing popularity of these artistic genres; they're on the rise.

The report spotlights NFT-based art as a significant influencer in the art market. The sale of Beeple's "The First 5000 Days" is heralded as the spark that ignited this movement. Intriguingly, the most popular pins on NFT Pinterest boards weren't the NFT art itself, but rather, pins criticizing the Bored Apes Yacht Club for their alleged use of Nazi hate symbols.

According to the report, the NFT art market faces declining value due to several factors, including the falling prices of cryptocurrencies, which in turn make NFT art more expensive. The rise of copycat NFTs further complicates the ability to distinguish originals from replicas. However, despite these setbacks, the report remains optimistic about the potential and promise of the NFT art market.

Among the top-selling artists, the report highlights two collections from Yuga Labs: Crypto Punks and Bored Apes. Bored Apes are depicted as cartoonish apes that have become a status symbol among celebrities and the affluent. In essence, they are seen as a historical art collection that has left an indelible mark on the art market.

What's particularly intriguing is the positive perception of NFT art within the art world and the widespread recognition of its enormous potential. NFT art is increasingly regarded as a legitimate and equal form of art.

The idea behind the book is acceptable, and I do see its value for newcomers to the subject. It offers a way to grasp some basic information about the topic. If you're completely new to this field, it can serve as a starting point to familiarize yourself with the basics.

However, my main concern lies in the depth and credibility of the content. While it's a decent introduction, the lack of more detailed and well-sourced information makes it fall short of being a comprehensive resource.

In essence, you can learn some basics from this book, which can be interesting, especially if you're a total beginner in the art world. It provides a foundation to understand the subject matter. Nevertheless, it's important to note that this book won't take you into the intricacies of the art scene or market. If you're looking for a more comprehensive and well-researched source, you might want to explore other options.

Ultimately, whether or not to purchase this book depends on your specific needs and expectations. If you're seeking a quick introduction to the topic, it could be a useful starting point. However, if you're looking for a deeper dive into the subject, you may want to consider other resources.

Business

Will Epic Games buy Yuga? A Bold Vision

Before I dive into this, I want to make it clear that what you're about to read is purely a collection of thoughts and ideas straight from my imagination.

It's not backed by any concrete facts, just a bit of fantasy.

So, with that said, let's explore an idea that might seem a bit out there, but hey, sometimes the boldest ideas are the ones that make the most sense.

At Yuga Labs, it seems like there are some changes in the wind. One of their founders is dealing with health issues, and there are murmurs about how smoothly their game development is going. There have been a few hiccups in delivering their products on time, and some folks in their community have started to miss the good ol' vibes from their early days.

On top of that, the value of their NFTs has taken a bit of a tumble. The whole market for these digital goodies is going through a rocky patch.

The royalties are dwindling, and the overall income situation isn't looking great.

All together investors are getting a bit jittery, and that's putting extra pressure on Yuga Labs.

Recent layoffs only add to the growing concern. No matter what Yuga does, the problems could just keep piling up, especially when you consider the challenges of a bear market and the struggle to meet deadlines.

So, in a situation like this, I'd start thinking about an exit strategy, and when I say "exit," I mean a merger or acquisition (M&A) with a bigger player who can bring something extra to the table and help take things to the next level.

Now, who could that potential partner be?

Yuga Labs made an interesting move by bringing in some top-notch talent, including Mike Seavers, who used to work at Epic Games.

Yuga Labs also recently made waves by investing in a company called Hadean. The interesting thing here is that Epic Games was an early investor in Hadean too. Back in September 2022, Epic Games publicly announced its investment in Hadean.

Here's what Marc Petit, VP of Epic’s Unreal Engine Ecosystem, had to say about it:

“Hadean’s computing power will provide the infrastructure that’s needed as we work to create a scalable metaverse. The company’s technology complements Epic’s Unreal Engine by enabling massive amounts of concurrent users and unlocking new tools for creators and developers. We are pleased to contribute to Hadean’s growth and look forward to continuing to work together to lay the foundation for the metaverse.”

As far as we know, Otherside, main project of Yuga Labs, is built on the Unreal Engine.

In March 2023, Epic Games made a big splash by announcing their plan to introduce nearly 20 NFT games to the Epic Games Store. While Epic Games didn't create these NFT games themselves, their move into the NFT space shows their strong interest in blockchain technology.

By the time of this announcement, Epic Games already had five NFT games available on their platform, and they were doing quite well. This bold step into Web3 gaming highlights their forward-looking approach.

Another interesting tidbit is that 40% of Epic Games is owned by Tencent, a major Chinese company. This is interesting because Yuga Labs has been increasingly focused on the Asian market too, especially with events like ApeFest taking place in Hong Kong.

Coincidence or strategy? It could be both.

So, maybe this is just a wild idea, but there could be some real benefits for both Yuga Labs and Epic Games if they decide to team up (M&A).

For Epic Games, it would mean getting their own Web3 metaverse game and tapping into the expertise of a Web3 gaming specialist. Yuga is a missing piece for Epic Games to supercharge their metaverse strategy.

For Yuga Labs, this partnership could be a vital step to survive. As they navigate the challenges of a shifting landscape, the business model they've been hunting for might just be found within the Epic Games universe.

In conclusion, although it might seem audacious, a merger between Yuga Labs and Epic Games could be a strategic masterstroke. It could unite technology, expertise, and a shared vision, potentially ushering in a new era of innovation in the gaming and NFT realm.

Who knows? With all the exciting developments happening lately, this seemingly crazy idea might already be in the works. Or it’s just my fantasy.

Let's Chat and Share the Love

I'm eager to hear your thoughts about my wild idea regarding an Epic Games and Yuga merger.

Do you think it's just a coincidence, or could there be something more to it?

Would it make a great mach?

Share this discussion on X and tag me to join the conversation.

If you found value in this newsletter, I'd greatly appreciate it if you could recommend it on X.

Here's the link to share: https://yuga-newsletter.beehiiv.com/subscribe

Thanks! 😊

Your Prof