On July 29, Funko (Nasdaq: FNKO), a leading pop-culture consumer products company, announced a partnership with multinational entertainment conglomerate Paramount Global (Nasdaq: PARA) to launch a new series of non-fungible tokens (NFTs) based on the Avatar Legends universe. This marks Funko's latest expansion of its iconic Digital Pop! NFT lineup, following collaborations with Warner Bros., DC Comics, and other major brands.
NFT Drop Details and Pricing
The collection, titled “Avatar Legends x Funko Series 1 Digital Pop!”, will go on sale August 9, 2022 via the NFT platform Droppp. Standard packs are priced at $9.99 and premium packs at $29.99. A total of 625,000 NFTs will be minted. Each pack contains a random character digital bobblehead, with rare editions redeemable for a limited-edition physical vinyl collectible, a key feature bridging digital and physical collectibles. Featured characters include iconic figures from Avatar: The Last Airbender and The Legend of Korra, such as Kuruk, Painted Lady, and Fire Nation Aang.
Funko's NFT Roadmap and Market Context
This is not Funko's first NFT venture. The company has previously released Digital Pop! NFTs for Jay and Silent Bob, Transformers, Star Trek, DC Comics, Iron Maiden, and more. All Funko NFTs are minted on the Wax blockchain. According to CryptoSlam, Wax saw $379,000 in NFT sales over the past seven days, ranking ninth among 17 major NFT blockchains; its secondary marketplace Atomicmarket ranks tenth in all-time sales. However, the broader NFT market is sluggish: global NFT sales volume dropped 25.26% week-over-week, and Google Trends data shows the search term “NFT” has fallen from a peak of 100 in January to just 16. Despite this, Funko’s stock price has been rising, attributed by Zacks to “solid demand across product categories.” The company recently acquired collectibles brand Mondo and is set to release its quarterly earnings soon.
Paramount’s Position and Industry Outlook
In contrast, Paramount’s shares were recently downgraded by Goldman Sachs. This partnership represents Paramount’s attempt to monetize its popular IP amid a market downturn. Analysts suggest Funko’s model of linking digital assets to physical collectibles may boost mainstream adoption. Whether the Avatar Legends launch can revive market sentiment remains uncertain. Funko has not yet disclosed the rarity tiers for the collection.