Yuga Labs, the creator of the Bored Ape Yacht Club, has attracted flak from the crypto community after requiring customers to go through know-your-customer authentication in order to join up for the company’s new cooperation with Animoca Brands.
KYC is required for a new bored ape project.
To participate in Yuga Labs’ next experiment, bored Ape fans will need to divulge their identity.
The creator of the Bored Ape Yacht Club teased a webpage for an impending cooperation with cryptocurrency game developer Animoca Brands on Thursday night, but many fans are hesitant to sign up.
The reason for this is that consumers must go through comprehensive know-your-customer authentication in order to register an Ethereum wallet. A passport, national ID, or driving license, as well as a slew of personal facts, such as family name, date of birth, and proof of address, are required.
Many members of the cryptocurrency community have spoken out against the move on Twitter, criticizing Yuga Labs’ strict KYC standards. “Sad day, this will be the first (and hopefully only) BAYC-related thing I’ll miss.” “No KYC for me, please,” said one user who went by the handle @OGDfarmer. Others, on the other hand, appear to be more aware of Yuga Labs’ KYC requirements. KYC rules, according to user @BAYC2745, are unavoidable for large NFT firms like Yuga Labs that wish to go mainstream.
Aside from the KYC procedures, users must also agree to a Terms of Service contract, which has been criticized. The Terms of Service provide Animoca Brands, a Yuga Labs partner, the right to license, adapt, and market any portion of users’ current and future content produced through or connected to the new initiative. “I truly thought we were trying to get away from a web that profited off people’s IP without their knowledge,” user @SebsDead_ tweeted, referring to the crypto community’s efforts to get away from centralized Web2 platforms where users do not control their material. Crypto enthusiasts believe that “Web3” is the next generation of Web2, a new version of the Internet in which decentralization is prioritized and users retain control of what they create online.
While many Bored Ape Yacht Club followers are upset about the KYC requirements, the project’s team appears to appreciate their customers’ worries. The official Bored Ape Yacht Club account sent a follow-up to the project’s announcement Tweet:
“This has been building for seven months.” The first phase will be launched by @AnimocaBrands, with more to follow. P.S. We dislike KYCs as well, but we believe you’ll want to be a part of this.”
The Bored Ape Yacht Club account also indicated in the same thread that the project will have nothing to do with the previously confirmed Bored Ape Yacht Club token or play-to-earn game.
Bored Ape Yacht Club NFTs have gotten a great deal of public attention in recent months. Several famous celebrities, including talk show host Jimmy Fallon, musician Eminem, and sports players such as Golden State Warriors’ Stephen Curry, announced they had purchased Bored Ape NFTs.
In February, it was also reported that Yuga Labs, the business behind Bored Ape, was in talks with venture capital firm Andreessen Horowitz about a prospective investment for $4 to $5 billion. While this rumor has been published by several sources, its veracity has yet to be proven.
Regardless of the controversy over its KYC restrictions, the new collaboration effort appears to be boosting the enthusiasm surrounding the Bored Ape Yacht Club brand even more.