Pudgy Penguins CEO Predicts 2020-2021 NFT Boom Repeat, $50 Million Revenue

Luca Netz, the CEO of Igloo Inc., which owns the Pudgy Penguins brand, has expressed optimism about the future of NFTs and crypto gaming. In an interview, Netz predicted that the NFT market will experience another boom similar to the mania seen in 2020 and 2021. He also expressed confidence in the potential of crypto gaming, stating that he is even more certain about its growth than he is about NFTs.

The Pudgy Penguins brand, which began as an NFT collection, has since expanded into various areas, including games, meme-inspired social videos, children’s books, and plush toys. Netz sees this expansion as a way to compete with popular memes like Doge and Pepe in the short term, and with giants like Pokémon or Hello Kitty in the years to come. He believes that physical toys can capture a different part of someone’s life and maintain a brand presence when all screens are off. They can also be intergenerational, holding meaning for both adults and kids.

Netz bought the Penguins brand three years ago for 750 ETH, or about $2.5 million at the time. He has a clear vision for the brand's future, aiming to make "everybody in crypto" own some piece of Pudgy Penguin IP and some PENGU, the brand’s affiliated memecoin. He plans to tap into the existing crypto-native audience and their families, while also expanding into broader consumer markets.

Igloo Inc., which owns Pudgy Penguins, Abstract, and the Overpass NFT licensing platform, is on track to make $50 million in revenue this year. Netz believes that the opportunity in the open ocean in crypto today is consumer-focused, stating that a billion dollars in revenue in consumer markets could be more profitable than a billion dollars in revenue in DeFi.

Netz's predictions about the NFT market and crypto gaming come at a time when the NFT market is experiencing a significant resurgence. The market capitalization of NFTs has surged, and notable collections like CryptoPunks and Pudgy Penguins have seen significant increases in their floor prices and daily sales. This resurgence is not just about financial gains but also about culture, status, and ultimately belonging. It is a positive sign for the crypto gaming industry, as NFTs are the backbone of the Ethereum cultural economy.