How plushies saved Pudgy Penguins from bankruptcy
From a six-month runway in 2022 to a projected $50 million in 2025 revenue, Pudgy Penguins beat the NFT crash with a risky bet on toys.
Just about three years ago, non-fungible token (NFT) brand Pudgy Penguins was nearing bankruptcy — now it’s projected to end the year with $50 million in revenue.
CEO and owner Luca Schnetzler (better known as Luca Netz) built a fortune through Instagram before breaking into the toy industry. In the blockchain world, he was among the largest Pudgy Penguins holders, but like many in the community, he wasn’t happy with the collection’s price performance. In April 2022, the project was at an all-time low. He decided to strike, acquiring parent firm Igloo for $2.5 million in Ether (ETH).
But soon, Netz had some hard choices to make. The Terra collapse in May 2022 sparked a prolonged bear market. NFT assets tanked in value, threatening to turn Netz’s acquisition into a failure.