Giant of pop culture goods Funko (FNKO) bet that non-fungible tokens (NFTs) will stay here despite a dramatic drop in market value. The company behind Funko Pop! Vinyl figures have an ambitious goal of doubling sales to his $2 billion by 2026. Funko plans to expand his NFT product to meet that goal.
CEO Andrew Perlmutter says today’s youth are more interested in digital investments and assets. “My kids always want the latest Fortnite avatar skins and guns,” he says Perlmutter. “So the way they see digital assets is different than the way we dinosaurs see them.”
Perlmutter admits he’s no expert in the field, but says growing the fanbase is worth it.
Last April, Funko purchased a 51% stake in TokenWave. TokenWave is the developer of TokenHead, an NFT exhibiting and tracking platform. TokenHead’s app allows users to view her NFT holdings, track their value, and has many features for buyers and sellers, including authenticity verification.
“We knew it made sense for our brand to get into the NFT business…it’s people collecting digital assets,” Perlmutter said.
Dive into NFT
Funko launched its first line of NFTs last August, with a total market size of about $3.6 billion at the time. While his famous NFT collections such as Bored Ape Yacht Club and CryptoPunks are making headlines at eye-popping prices, Funko has taken a trading card approach. Funko sells his NFT pack containing five digital collections for $9.99 or a pack of 15 for $29.99.
However, the market for NFTs dropped dramatically this year as cryptocurrency prices plummeted. Monthly NFT marketplace volume fell from $5.6 billion in January 2022 to $501 million in August. It dropped further in September, totaling just over $202 million mid-month.
But that hasn’t hurt Funko, thanks to the company’s strong fan base and affordability.
Funko has had a blast with the launch of NFTs. Many of their NFT series can be redeemed for physical his Funko Pops!, the flagship segment of vinyl figures. Collectors are buying them for limited edition “Chase” sets.They’ve also seen an influx of customers who have never bought Funko His Pops!But there’s no interest in NFTs. There is, says Perlmutter.
“20 consecutive drops, 20 consecutive sellouts,” owner and chief creative officer Brian Mariotti said at Funko’s press day on Tuesday. “[We’re] It is the only company in the world that actually adopts the strategy of “digital meets physical”, adopts digital NFT, and offers genuine and rare physical products together. ”
Funko had a waiting list of 500,000 people for the first DC Comics NFT drop. And last week’s release of his DC Comics Series 2 line marked Funko’s biggest earnings day in terms of his NFT sales. About 35% to 40% of NFT’s sales come from outside the US, further accelerating Funko’s international expansion goals. The company is also looking to expand its presence in China, Asia, South America and Latin America.
Funko is exploring different ways to grow its market, expand its licensed brand, gamify its products, and add utility to its NFTs to bring them to market. “Whether it’s on the high seas or through an open auction, an experiential encounter (sic) or a physical encounter (sic),” Mariotti said. He did not disclose whether he was referring to a partnership with OpenSea, the largest of which is his NFT marketplace platform. The Funko NFT Collection is now available for purchase through the Droppp platform built on the WAX blockchain.
Funko did not respond to confirm whether it was working on OpenSea integration by the time of publication.
“We have some more innovations in this space, including a new strategy that we plan to announce at the end of the year,” Mariotti said. has been very successful, but there are many innovations [is] We continue to invest in that business as well, so it’s ongoing on the back end. ”
find a fan
Funko’s motto is to meet customers where they are and satisfy their interests, Perlmutter said.
Funko has achieved success through strategic acquisitions of strong brands with overlapping customer bases.
The company acquired lifestyle and apparel company Loungefly in 2017. And in June, Funko acquired luxury memorabilia company Mondo for $14 million.High-end posters, art, vinyl records and other memorabilia have a large audience, Perlmutter said.
That same idea led to the launch of their line of mobile games and upcoming AAA action platformer video game. And Funko is exploring ways to expand his IP across various content platforms.
“We’ve been looking at whether it’s movies, streaming TV shows, or video games.” “But this is a truly unique opportunity to bring the Funko license that fans around the world love to her IP.
He said Funko is in talks with several major streaming services, but could not disclose more information at this time.
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