Orange Cap Games has closed a $3.5 million seed funding round, with 1kx and Yuga Labs leading the investment. This marks the company's second round of funding after an initial $2 million raise backed by key opinion leaders, crypto-native investors, and collectibles industry experts. The fresh capital will fuel ongoing development of Orange Cap Games' primary projects, including the expansion of its Vibes trading card game (TCG) and the integration of the Moonbirds intellectual property, which the company recently acquired.
Orange Cap Games Raises $3.5 Million
Orange Cap Games Raises $3.5 Million
The funding follows closely on the heels of Orange Cap Games' purchase of the Moonbirds IP from Yuga Labs. Finalized on May 30, the deal encompasses the Moonbirds, Mythics, and Oddities NFT collections. This transfer is part of Yuga Labs' strategic reorganization to tighten its focus on flagship projects like the Bored Ape Yacht Club and the Otherside metaverse.
Moonbirds debuted in April 2022 and rapidly gained traction in the NFT market, racking up more than $280 million in combined primary and secondary sales during its opening weekend. Yuga Labs acquired Moonbirds and its creator Proof in early 2024, bringing Proof's founder Kevin Rose on as an advisor. Rose, previously co-founder of Digg, played a significant role in Moonbirds' initial rise and popularity.
Orange Cap Games Raises $3.5 Million
Yuga Labs Refines Focus with Strategic Divestments
Selling Moonbirds fits into Yuga Labs' broader plan to streamline its portfolio, improving operational efficiency and directing resources toward its most established assets. As part of this restructuring, Yuga Labs has also divested other intellectual properties. The CryptoPunks IP was transferred to the Infinite Node Foundation, a nonprofit, while the Meebits collection went to MeebCo, a separate entity.
Yuga Labs CEO Greg Solano pointed to Orange Cap Games' expertise in consumer crypto behavior and digital asset management. He expressed confidence that Moonbirds would thrive under a company dedicated to its growth, particularly within the web3 gaming space.
Orange Cap Games Raises $3.5 Million
Plans for Moonbirds Integration into Ecosystem
Orange Cap Games specializes in both physical and digital trading card games. Its flagship product, Vibes TCG, draws from the Pudgy Penguins NFT collection and runs on Abstract, an Ethereum layer-2 network. With Moonbirds now under its control, the company intends to broaden its product lineup, though exact details on new offerings remain unannounced.
Future digital assets tied to the Moonbirds collection may launch on a layer-1 blockchain or on ApeChain, an Ethereum layer-2 network linked to Yuga Labs. Moonbirds characters are also slated for integration into the Otherside metaverse game, opening up additional engagement opportunities across various web3 gaming platforms.
Orange Cap Games Raises $3.5 Million
Broader Trends in the Web3 Gaming Industry
The collaboration between Orange Cap Games and Yuga Labs highlights a changing dynamic in the web3 gaming and NFT sectors. As the market matures, companies are pulling back from aggressive expansion in favor of more deliberate, strategic growth. This means zeroing in on fewer projects that deliver stronger community engagement and lasting brand value.
For Yuga Labs, this approach involves channeling resources into a tighter selection of projects that have proven durable and recognizable in the shifting web3 landscape. For Orange Cap Games, acquiring Moonbirds represents a move toward becoming a bigger name in web3 gaming by building immersive experiences around established digital assets.
