Pluto&Folius Leads $8M Push to Merge NFTs with Physical Toy Collectibles

Capybobo, a Web3 NFT project focused on blending digital and physical collectibles, has secured an $8 million strategic investment led by Pluto&Folius, with participation from Mirana Ventures, HashKey Capital, and Animoca Brands, according to LookOnChain. The funding underscores growing institutional interest in Web3 gaming and NFT-driven consumer goods, particularly in markets where traditional toy brands are seeking digital innovation.

Pluto&Folius, a Web3 game distribution platform backed by YZi Labs, emphasized its expertise in scaling blockchain-based gaming projects. Its flagship project, Catizen, has become the top revenue-generating game on Telegram's miniapp platform, amassing over 63 million users across Telegram and LINE. The firm's involvement in Capybobo aligns with its strategy to bridge physical and digital collectibles, leveraging its existing infrastructure to expand into new IP categories.

Capybobo operates within the TON and Kaia blockchain ecosystems, targeting Web2 toy enthusiasts by creating NFTs tied to trendy toy intellectual properties. The project debuted its co-branded toy apparel at the Tokyo WebX Expo in August 2024, where it received strong on-site feedback. The latest funding will accelerate the development of its online toy apparel platform, support brand expansion in Europe and Asia, and fund the construction of a global toy trading hub. The team also plans to open its first physical flagship store in Hong Kong by 2026.

The investment follows a broader trend of Web3 projects securing institutional backing to scale physical-digital integration. Capybobo's approach—where NFTs correspond to tangible products—differentiates it from traditional GameFi models. Players can earn ecosystem tokens through in-game activities, with rare NFTs offering higher airdrop weights, as noted in a LookOnChain snapshot. This model was previewed at the Tokyo WebX Conference, where the project's physical-digital synergy generated significant buzz.

Pluto&Folius' leadership in the round highlights the platform's role as a key enabler of Web3 gaming adoption. By leveraging its existing user base and distribution networks, Capybobo aims to create a unified ecosystem where digital ownership translates into real-world utility. The project's focus on toy IP also taps into a market with established consumer demand, potentially attracting both Web3-native and traditional collectors.

The funding comes as Web3 projects increasingly seek to establish tangible value propositions beyond speculative trading. Capybobo's strategy to integrate NFTs with physical products aligns with broader industry efforts to address criticisms of Web3's "infinite scrolling" problem by creating hybrid experiences. The project's plans for a global trading platform and physical retail presence further signal a shift toward Web3's mainstream adoption.