Dapper Labs Acquires Brud: NFT and Virtual Influencer Worlds Collide
Dapper Labs Acquires Virtual Influencer Startup Brud
Dapper Labs, the company responsible for the popular NFT platform NBA Top Shot – recently assessed at a valuation exceeding $7.5 billion – has announced the acquisition of Brud, a startup specializing in virtual influencers.
The entire 32-member Brud team will be integrated into Dapper Labs, according to a statement provided to Decrypt.
Brud and the Rise of Virtual Influencers
Brud gained prominence through its digitally created social media personalities, most notably Lil Miquela.
The company’s success attracted investment as early as 2018, inspiring the creation of similar virtual influencer projects.
Despite initial attention, the virtual influencer market has remained relatively niche, with Brud’s characters amassing a significant following on Instagram and achieving a $125 million valuation.
The financial details of the acquisition were not disclosed by Dapper Labs.
The Strategic Rationale Behind the Acquisition
A key question arises: what is the strategic benefit for an NFT-focused company like Dapper Labs in acquiring a virtual influencer entity?
The answer appears to center around Brud founder Trevor McFedries’ evolving interests and the potential of Decentralized Autonomous Organizations (DAOs).
McFedries has been increasingly involved in the cryptocurrency space, shifting Brud’s focus towards collective decision-making through DAOs.
Focus on DAOs and the Flow Blockchain
McFedries is also a co-founder of “Friends With Benefits,” a well-known DAO.
DAOs enable users to collaborate on investment choices and have gained traction within the crypto community as developers pursue more ambitious projects.
While the development of Miquela will continue, McFedries will now head a new division within Dapper Labs, named Dapper Collectives.
This division will concentrate on enhancing the usability and accessibility of DAOs for a broader audience of crypto users.
The company intends to leverage its Flow blockchain to facilitate these advancements.
Ultimately, Dapper Labs sees potential in combining Brud’s expertise with its blockchain technology to foster the growth of decentralized communities and collective governance.