Funko Skyrockets After Entering NFT Market

Funko (NASDAQ: FNKO), a pop culture collectible company, rose Thursday following the announcement that it had acquired a majority stake in TokenWave, ultimately entering the NFT market. TokenWave is the creator of TokenHead, an app and website that tracks holdings in nonfungible tokens. No financial details regarding the deal were disclosed.

The move facilitates the entry into the NFT market and will boost Funko’s pop culture division to incorporate digital assets. The company said it plans to launch its NFT offerings in June, with a new property to be presented each week at a minimum of USD9.99. 

“Our strategy in this space is clear — bring the value-added NFT opportunity to our licensing partners to leverage our broad range of existing pop culture content across television, movies, sports, music, anime, video games and comic books. Our amazing licensing partners are excited about our entry into this new digital space and we believe the diversity of our licensing portfolio sets us up for long-term success,” CEO Brian Mariotti said in a statement.

Mariotti emphasized that it was critical to make Funko NFTs readily available to fans amid affordable prices. Goods are to be sold on the Worldwide asset exchange (WAX) platform, a decentralized wallet on the blockchain. Wax will supply buyers with verifiable authenticity of Funko NFTs.

“Digital leads to physical and physical to digital,” Mariotti told GeekWire. “For mainline products, we may do promotions like offer free NFTs to get them into the digital world. You will see strong physical and digital strategies to make this successful. Each card will have an experience that includes motion and artistic creativity, a truly interactive experience.”