NFTs are having the full impact of Floptober, with sales now falling for the seventh consecutive week. It’s not just the market that’s getting hammered this season, but some of the biggest NFT native brands like Yuga Labs and Proof Collective announced substantial layoffs last week. The impact of a market downturn has never been more apparent.Thank you for reading this post, don't forget to subscribe!
With their first major layoff, Yuga Labs revealed that they will be changing the main focus of their business. Instead of creating supporting games in house, they will now turn entirely to third parties that bring more of an experience, and allow them to focus on their Otherside metaverse and community.
As a poster child or roadmap for NFT projects, many projects followed the path of Yug Labs’ game development. But the difficulty of creating a fun and engaging game can’t be underestimated, and now we’re seeing where the game plan potentially leads. While Yuga Labs has resources to outsource future games and focus on its Made with Apps intellectual property licensing platform, many of the projects were based on gaming. This could prove to be a costly mistake.
Pudgy Penguins have been winning during this crypto winter with a similar two-tier gaming and IP-centric model, but their brutal marketing outside of the existing NFT community shows that money can be raised in a bear market. Through viral social media campaigns and business savvy, Pudgy Penguin toys are now available in 2,000 Walmart stores across the US, and as of last week, also in Smyths stores in the UK.
As yet, 25% Walmart’s entire inventory of Puggy Penguin toys has sold out, and while it’s impossible to know the value of those sales right now (Walmart’s total supply is valued at approximately US$300 million), it’s safe to say that Puggy Penguin has created a recipe for success. have taken. ,
This success has directly translated to their NFT value, as the average price of Pudgy Penguin NFTs climbed in October US$8,875, up 11% from January. NFT holders whose NFTs are depicted as these toys also receive royalties every time their respective toy is sold, which is currently estimated This year it will be about US$2,000.
The difference between Yuga Labs’ and Pudgy Penguins’ licensing platforms appears to be that the Pudgy Penguins team works hard to find deals for holders, while Yuga Labs acts as an intermediary for anyone ready for a deal. . In the end, both strategies can work, but the real takeaway here is that Pudgy Penguins are finding the success that was elusive for most during the bear market.
The current game plans of both projects point to the importance of IP for NFT projects, this is the main objective of Pudgy Penguin, and Yuga Labs is now making it a huge focus. With the new IP meta in its infancy, we get a chance to sit back and watch how today’s niche NFT businesses are paving a path for the rest to follow. Future NFT builders, I hope you’re paying attention, because this is a road you’ll probably be walking down soon. It’ll be less bumpy thanks to the efforts of some bored and experienced animals.
The NFT market was down almost across the board last week, and will continue to decline until collectors find value. How low it can go depends on what NFTs are offering, but there isn’t much being offered yet. Last week just ended with this US$55 million In global NFT sales, this is the first time that sales have fallen below US$60 million since the week of February 8, 2021. Unique sellers, buyers and transactions all fell from the previous week, although all were still up sharply from February 8. , 2021.
- dmarket And their gaming skin NFTs (Counterstrike, DOTA2, etc.) sold over US$8.9 million, once again outperforming the #2 and #3 ranked collections combined.
- CryptoEdge CryptoEdge’s single “Fat Finger” tops top ten this week thanks to sale of 1,055 ETH #4030, The bid was actually intended to be 1.055 ETH.
- cuddly penguin Sales have surged to over US$1.3 million this week, quietly climbing to the #19 rank of all-time NFT collections.
- God It’s back in style this week with $877,000, and a fresh new collection “Reset” awaits.
- Ethereum Sales are down 9.14% this week to $36 million, and washtrading continues to decline as speculators are still farming the SoFi platform.
- DMarket is running 99% again mythos chain Even with the launch of the blockchain’s latest game, Nitro Nation World Tour, sales increased by US$8.9 million.
- Solana’s The US$6.7 million in sales came from several collections that ranked in the 24-hour top 10 last week, including Bozo Collective, Rivers and Fidelian.
- polygon Sales of US$4.7 million were seen in one week when co-founder Jayanti Kanani announced he would be stepping back due to the “day-to-day hassles”.