Funko CEO: Giant Holdings is taking advantage of this NFT position to support growth

Funko CEO: Giant Holdings is taking advantage of this NFT position to support growth


Giant pop culture collectibles Funko (FNKO) is betting that non-fungible tokens (NFTs) are here to stay, despite the significant drop in market capitalization. The company behind Funko Pop! Vinyl Numbers has an ambitious goal of doubling its revenue to $2 billion by 2026. Funko plans to expand NFT offerings to help reach that goal.




X



CEO Andrew Perlmutter says that young people today are more interested in investments and digital assets. “My kids always want the latest look or the Fortnite avatar gun,” said Perlmutter. “So the way they view digital assets is different from the way we dinosaurs view them.”

Perlmutter admits he’s not a true expert in the field, but says there is value in expanding his fan base.

Last April, Funko bought a 51% stake in TokenWave, the developer behind NFT’s TokenHead tracking and display platform. The TokenHead app allows users to view their NFT holdings, track their value and has a number of features for buyers and sellers, including authenticity verification.

“We knew that it made sense for our brand to be in the NFT business…they’re the people who amass the digital assets,” Perlmutter said.

Featured in NFTs

Funko launched its first lines of NFTs last August when the total market size was around $3.6 billion. While high-profile NFT groups such as Bored Ape Yacht Club and CryptoPunks made headlines due to the prices that came into view, Funko took the trading card approach. Funko sells NFT bundles for $9.99 that include five digital collectibles, or bundles of 15 for $29.99.

But the NFT market has fallen significantly this year as the price of cryptocurrencies has fallen. Monthly NFT market volume fell to $501 million in August from a high of $5.6 billion in January 2022. It only declined in September, totaling just over $202 million in the middle of the month.

That didn’t hurt Funko, however, thanks to the company’s strong fan base and reasonable price point.

Funko had a strong reception for the release of NFT. Many of their NFT series are redeemable for physical Funko Pops! , The main part of the vinyl figures. Collectors were buying them for limited edition “chasing” sets. They’ve also seen an influx of customers who’ve never bought a Funko Pop! But they are interested in NFTs, Perlmutter said.

“Twenty drops in a row, 20 sales in a row,” owner and chief creative officer Brian Mariotti said at Funko’s Press Day on Tuesday. “[We’re] The only company in the world that truly embraces a “physical digital convergence” strategy, using digital NFT technologies and placing real and rare physical products with it. “

Funko had a waiting list of 500,000 people to drop the first DC Comics NFT. The release of the DC Comic 2 series last week marked Funko’s biggest revenue day for NFT sales. About 35% to 40% of NFT sales come from outside the United States, furthering Funko’s international expansion goals. The company is also looking to increase its presence in China, Asia, South America and Latin America.

digital trend

Funko is exploring different ways to grow its market, expand its licensing brand, play products, add interest to NFTs and bring them to market. “Whether it’s through open sea and open auction, experience meets (sic) and meets (sic) material,” Mariotti said. “It was not clarified whether Open Sea refers to a partnership with OpenSea, the largest NFT market platform. Funko NFT collectibles are currently being purchased through Droppp platform, built on the WAX ​​blockchain.

Funko has not responded to confirm if it is working on OpenSea integration by the time of publication.

“We have more innovation in this area, including a new strategy that we are really excited to bring towards the end of the year,” said Mariotti. “Again, in the early days in this field. We’ve had a lot of success so far, but a lot of innovation [is] At the back end as we continue to invest in this business as well.”

Find fans

Perlmutter says Funko’s motto is about meeting customers wherever they are and achieving their interests.

Funko has achieved success through strategic acquisitions of strong brands with a well-kept customer base.

The company acquired the lifestyle and apparel company LoungeFly in 2017. LoungeFly’s revenue has grown from $17 million in 2017 to $208 million over the past 12 months. And in June, Funko acquired high-end souvenir company Mondo for $14 million. Perlmutter says there is a large audience for high-end posters, art, vinyl records, and other memorabilia.

This same thinking led them to launch their next line of AAA mobile and video games. Funko is looking for ways to expand its IP across different content platforms.

“We’ve been exploring whether, ‘Is it a movie, is it a streaming TV show, is it a video game? “I think the answer will ultimately be all of the above,” Perlmutter said. “But this is a truly unique opportunity for us to bring Funko’s IP license, which our fans around the world love, into the video game space.

He stated that Funko was in talks with some major streaming services, but could not reveal more information at the time.

You can follow Harrison Miller for more stock news and updates on Twitter Tweet embed

You may also like:

Cryptocurrency rates and news

What is cryptocurrency?

Get stock listings, stock valuations, and more with IBD Digital

Find stocks to buy and watch with IBD Leaderboard

Set rules and buy points using MarketSmith’s Pattern Recognition





Source link

Leave a Comment