Galaxy Digital’s Report Accuses BAYC & Moonbirds Of Misleading Buyers

Ayush Pande
20.08.2022

Galaxy Digital’s "A Survey of NFT Licenses: Facts & Fiction" claims the license agreements and IP rights that are entitled to owners of several popular NFT collections, including Moonbirds, BAYC, BAKC, and MAYC, contain many discrepancies with what buyers actually deserve.

BAYC License (Dis)agreements

A report by Galaxy Digital goes over the details of NFT ownership and their commercial rights to claim that many of the popular NFT collections mislead buyers and enthusiasts regarding the IP rights of the NFTs under their ownership. 

For instance, the license provided by Yuga Labs for its BAYC series states that the holder of a Bored Ape NFT owns the underlying art “completely.” Here’s where it gets messy, Galaxy Digital argues that, in actuality, the copyright holder possesses the IP rights to the NFT, and Yuga Labs does not assign the IP rights to holders. Therefore, it indirectly implies that the holder of a Bored Ape does not own the art and that Yuga Labs can unilaterally change the NFTs’ licensing agreements as they see fit.

Moonbirds’ Misleading Advertising

Galaxy Digital states that the Moonbirds collection has several contradictions between its public statements and the actual licensing terms. Earlier this month, the collection of 10K NFTs transitioned to a CC0 license; Galaxy Digital’s report claims the fact that PROOF Collective can change its licensing terms clearly implies the IP rights do not lie with the NFT holders.

Other Popular NFT Licenses

The report states that Yuga Labs’ newer licenses for the CryptoPunks and Meebits collections are more professional and concise than the ones for the Bored Apes series.

Lastly, although World-of-Women is the only one in the top 25 NFT collections to transfer full rights to NFT holders, Galaxy Digital’s report states it's unclear if the transfer of ownership extends to NFTs sold on secondary marketplaces.

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