Bored Apes owner draws 2,000 NFT enthusiasts to Hong Kong for first international ApeFest in win for local Web3 push
- The first ApeFest outside New York drew thousands of people from 60 countries, with support from the Hong Kong government, according to Yuga Labs
- As the company bets on Asia amid slumping revenue, Yuga landed on Hong Kong, where ‘important families’ own Bored Ape NFTs
More than 2,000 people from 60 countries attended the third annual ApeFest – the first to take place outside New York – according to Yuga Labs, the company that manages what is perhaps the most recognisable NFT brand in the world.
This year’s bid to raise Bored Apes’ profile turned eastward just a few months ago, according to Yuga Labs CEO Daniel Alegre, when the company dropped plans for a Las Vegas ApeFest to offer something to its Asia community.
“We had very strong holders, very influential holders [in Asia]. Some of the most important families here in Hong Kong own Apes,” Alegre told the Post in an interview on the sidelines of the main event on Saturday at the Kai Tak Cruise Terminal. “It was time for us to do something in Asia.”
Yuga’s decision to home in on Hong Kong after considering Singapore, Seoul and Tokyo came partly thanks to its investor Animoca Brands, which Yuga Labs “leaned on” for local contacts, Alegre said, adding that the Hong Kong government has also been “accommodating”.
“The Hong Kong government has been so supportive, and it worked out great,” Alegre said. “The location is fantastic.”
Obtaining permits and other preparations came together in a few short months, Alegre added. “We literally announced this four months ago, and we pulled this off very, very, very quickly,” he said.
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Local crypto firms have largely applauded the Hong Kong government’s initiative, but interest from major international players in establishing a presence in the city has been missing, leaving crypto talent that has left Hong Kong in recent years wondering whether to return.
“There has been a huge exodus of crypto talent out of Hong Kong over the past few years as other regions were comparatively more welcoming to cryptocurrency projects,” said Kevin Gibson, founder of Proof of Search, a recruitment firm focused on the blockchain sector.
“Now they’re taking notice of what is happening back home with some interest.”
Alegre, who previously served as Google’s president of Asia-Pacific and chief operating officer at Activision Blizzard, took the reins of Yuga Labs in April, and he is now betting on Asia as the company faces mounting challenges.
The Forkast 500 NFT index, a measure of the top 500 smart contracts, has plummeted 55 per cent this year.
Crypto news media The Block, relying on internal research data, reported last month that Yuga saw royalty payments plunge more than 70 per cent to US$2.5 million from the first to third quarter, amid increased competition that saw new NFT marketplaces skirting enforcement mechanisms for such payments.
The company may also not be immune from the regulatory scrutiny that has hit several crypto companies in the US in recent years. The US Securities and Exchange Commission opened an investigation into the company last year, Bloomberg reported.
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When asked about this by an attendee of a podcast recording with Hong Kong’s Web3 Harbour on Friday, Alegre said Yuga Labs’ NFTs should not be considered securities because it is selling the intellectual property to the images. But if a lawsuit does come, “we’re gonna fight it”, he said.
At the very least, Yuga Labs appears to be able to bank on a dedicated group of enthusiasts who are willing to fly halfway around the world just to attend a party full of like-minded people.
Among the participants of the event – with a set-up akin to a music festival that included a live DJ and a range of merchandise and experiences with Bored Ape branding – were 250 Americans who applied for their first passport just to attend ApeFest, the company said.
About 200 mainland-based members of Chinese Ape Club, with about 500 total members around the world, joined the event over the weekend, according to the group’s founder, who asked to be identified by his English name David.
Bored Ape Yacht Club is now “carrying the banner for the entire NFT ecosystem”, David said. Holding ApeFest in Hong Kong “at this challenging and crucial moment” could mean the city will play an important role in bringing the entire NFT ecosystem together, he added.
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A number of local industry figures were at the event, as well, including Animoca co-founder and chairman Yat Siu, who was mingling with the many Bored Apes owners looking for selfies and a chance to chat with one of the most vocal Web3 proponents.
“Basically sales of NFTs are 20 per cent of the mobile gaming industry today,” he said at the time. “So from my perspective, yes it’s down from last year, but it’s a major force, it’s here to stay.”
For Yuga Labs, the synergies with Animoca were on full display at Saturday’s event, with a booth full of computers dedicated to the metaverse-like Otherside platform, where players from around the world could interact with ApeFest attendees in real time. Players join as a Bored Ape avatar that they own.
