Happy Thursday. It’s Matt here. 

I gotta say I’m AMAZED at some of the opportunities NFTs have to offer. The growth rate for some projects can be astronomical.

While the markets continue to seesaw, I wanna take a look at how one NFT company reached a $4 billion valuation in one year. Yes, ONE YEAR.

For comparison, we’ll take a look at a few publicly listed stocks with a similar market cap and how long it took them to get there.  

Plus, we’ll look at signs that the NFT market is just getting started. Hint: some big ballers are joining the club. 

Now, let’s take a closer look at one of the most successful NFT projects of the decade…

How Yuga Labs Became the Leading NFT Company 

Here are a few signs that Yuga Labs is an NFT rocket ship that made it to the moon…

Who Started it All? 

Yuga Labs was founded in 2021 by two friends, Greg Solano and Wylie Aronow. Together, they created what’s now one of the most highly valued NFT projects on the market: Bored Ape Yacht Club.

The term “aping” was used in crypto communities to describe traders who jumped into unproven investments with the hopes of making a whole lot of money. Don’t try that at home, kids.

The BAYC story is about the faraway future where those bored rich folk form an exclusive club and hang out together. Sounds like a concept a lot of people might want to buy into. 

And the Yuga Labs founders know how to make BAYC NFT HODLers feel like part of a club. They frequently involve them in the company’s decision-making process and issue members-only perks.

Ultimately, Yuga Labs wants ApeCoin to become the currency of the BAYC economy, granting token holders special voting privileges when it comes to internal policy changes, and allowing them to purchase goods both digitally and IRL (in real life). 

What Does Accelerated Growth Look Like? 

Let’s look at a few publicly listed companies whose current market cap is similar to Yuga Labs’.

First, there’s popular clothing retailer Nordstrom Inc. (NYSE: JWN) with a current market cap of $4.20 billion. It was founded in 1901! Granted, it’s not at all-time highs … it was similarly priced in the 2000s … but that’s still about a hundred years after its founding.

Next, we’ve got Goodyear Tire & Rubber Co (NASDAQ: GT), founded in 1898 and currently sitting at a market cap of $3.73 billion. Everyone needs trusted tires in their life … but Yuga Labs is what the people want. 

In the aviation sector, we’ve got JetBlue Airways Corporation (NASDAQ: JBLU), founded in 1998 and currently sitting at a $3.60 billion market cap. And it’s trading in a price range close to its key levels from the early 2000s –– when it first went public.

Lastly, there’s the notable vaccine-focused biotech company Novavax Inc. (NASDAQ: NVAX). It was founded in 1987 and currently sits at a $3.60 billion market cap. I think you get the picture! 

Who’s Showing Up to the NFT Party Now? 

Venture capital is flowing into the NFT space, bringing a bit of (Wall) Street credibility to the sector. The Silicon Valley firm Andreessen Horowitz committed $450 million to Yuga Labs’ seed round, putting Yuga Labs at a $4 billion valuation.  

Yuga Labs plans to use the funds to scale its team and attract top talent for its creative, engineering, and operations departments, as well as for joint venture partnerships.

And now, NFT projects will have a new venture fund of their own, backed by the industry bigwig Ryan Carson –– the former Proof Collective and Moonbirds NFT project Chief Operating Officer.

Mr. Carson left his former partners shortly after Moonbirds’ debut to start his own NFT venture fund. We’ll definitely keep our eyes on any future projects he backs. 

Conclusion

When reputable venture capital firms get involved, it tends to be a good sign for any given industry. VC is the lifeblood of startups, and Yuga Labs got quite an infusion.  

It feels like NFT projects could be on the brink of something bigger. Some have taken off like rocket ships already, but can more follow suit? 

One of the best ways to stay up-to-date with this fast-paced sector is through my mentor Tim Sykes’ NFT Club. He’s an OG trader who’s seen sectors take off over and over for decades. He knows what patterns can turn a warm sector into a hot sector, and now he’s focusing his know-how on NFTs. He genuinely wants to help other traders recognize these opportunities too. Join us in the NFT Club!