Pudgy Penguins CEO’s advice to Web3: Create ‘real products’ that ‘transcend’ NFTs
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The old NFT business model is obsolete, Luca Netz says.
The formula? “Create hype, tell a narrative, hope people believe that narrative, mint a collection, make an exorbitant amount of money for little to no effort on royalties,” according to the Pudgy Penguins CEO.
Speaking to Blockworks on the Empire podcast (Spotify/Apple), Netz adds: “Pray that your floor price goes higher so you can release a secondary collection and make even more money.”
“And then you can do a third collection. And hopefully, if God is on your side and the market is on your side, you could come out of there with a hundred million bucks. Basically, that’s been the business model.”
Netz remarks that NFT-centric companies need to change their tactics amid a challenging environment. The bear market has “humbled that business model,” he says. He explains that entrepreneurs need to make “real money in the real world,” where they can control their own destinies.
“When you’re making a business that’s dependent on outside variables you can’t control,” like royalties or volatility, he says, “then you do not control your own destiny and you don’t really have a business.”
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