Pudgy Penguins were bred for the NFT Winter
Market Downturn: Floptober refers to a period of declining NFT sales, lasting for seven consecutive weeks. This slump has affected not only the market but also major NFT brands, such as Yuga Labs and Proof Collective, resulting in substantial layoffs.
Shift in Focus: Yuga Labs has announced a change in its core business focus. Instead of developing in-house games, they will now rely on third-party developers with more experience. This shift will allow them to concentrate on their Otherside metaverse and the NFT community.
Pudgy Penguins' Success: Pudgy Penguins have adopted a two-tiered approach, combining gaming and intellectual property (IP) licensing. Their success lies in their aggressive marketing efforts outside the traditional NFT community. Pudgy Penguins toys are now available in Walmart and Smyths stores, with 25% of Walmart's inventory sold out.
NFT Value: The success of Pudgy Penguins in the physical toy market has translated into increased NFT values. The average price of a Pudgy Penguin NFT in October rose to $8,875, marking an 11% increase since January. NFT holders also earn royalties each time a corresponding toy is sold.
Licensing Platforms: Pudgy Penguins actively seek deals for NFT holders, while Yuga Labs acts as a middleman for those looking to make deals. Both strategies can be effective, but Pudgy Penguins have found success during a bear market.
Importance of IP: The article emphasizes the growing importance of intellectual property for NFT projects. Pudgy Penguins prioritize IP, while Yuga Labs has also increased its focus on IP. Both projects serve as examples of the significance of IP in the NFT space.
Trailblazers for NFT Businesses: The success of Pudgy Penguins and the evolving strategies of Yuga Labs serve as examples for future NFT projects. They highlight the significance of IP in the NFT space and show that even during a market downturn, success can be achieved.
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