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Yuga Labs acquires Moonbirds NFT development team PROOF, but faces allegations of insider trading?

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Yuga Labs acquires Moonbirds NFT development team PROOF, but faces allegations of insider trading?

NFT marketing company Yuga Labs announced yesterday on the 16th that it has acquired the development team Proof behind the popular NFT series "Moonbirds" and stated that it will incorporate the IP into its metaverse game "Otherside." However, there seems to be undisclosed insider trading involved in this acquisition.

Yuga Labs Acquires PROOF

Yuga Labs' latest announcement reveals the acquisition of PROOF, the creator of the Moonbirds NFT series.

In this acquisition, Yuga Labs will take over entities including PROOF Collective, Moonbirds, and other derivative NFT brands such as Oddities, Mythics, and Grails.

Additionally, Yuga Labs CEO Daniel Alegre shared insights on the future of Moonbirds:

As a high-potential NFT series, Moonbirds shares many brand elements with Otherside, so we will be integrating it into Otherside.

He added, "As a company dedicated to advocating for blockchain art, culture, and community, we are excited to welcome PROOF into the Yuga ecosystem."

Furthermore, PROOF's CEO Kevin Rose will continue as an advisor within the PROOF team following a brief transition period.

Previously seen as the successor to BAYC, Moonbirds' floor price has dropped to 1.8 ETH, over 95% from its peak of 40 ETH.

6 Reasons for the downfall of Moonbirds legend! Founder's statement sparks discussions: Prices dropped even lower than Bored Ape Yacht Club

Insider Trading Existence?

Acquisition events not only cause significant fluctuations in traditional financial markets but also in the Web3 market. However, in the days following the announcement of PROOF's acquisition, Moonbird prices surged, leading to speculation within the community about insider trading.

Data from the on-chain analytics platform CryptoSlam shows that Moonbirds' daily trading volume in February mostly remained below $100,000.

However, on February 14, Moonbirds' daily trading volume skyrocketed fivefold from the previous day to nearly $460,000. The following day, the volume remained at a recent high of around $330,000, and after the acquisition announcement on the evening of the 16th, it surged to $3.1 million and continues to rise.

KOL: Someone swept hundreds of Moonbirds NFTs a week before the acquisition

Many Key Opinion Leaders (KOL) have expressed their views on this phenomenon, suggesting potential insider trading as the reason for the sudden surge in trading volume.

Mocaverse NFT advisor Cygaar mocked the situation by releasing a chart of Moonbirds' trades over the past week, stating unequivocally that there was no insider trading here.

Another KOL, Cirrus, pointed out that a wallet purchased 80 Moonbirds, 71 Mythics, 28 Oddities, and 13 Mythic Eggs NFTs in the days leading up to the acquisition announcement, resulting in profits of tens of thousands of dollars after the news.

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