This week, OpenSea had the chance to chat with the CEO of Pudgy Penguins, Luca Netz, about the future of the brand and what excites him about web3 today. 

Pudgy Penguins is a collection of 8,888 NFTs created in July 2021 with the intention of accelerating web3 innovation through IP utilization and community empowerment. Embodying love, empathy, and compassion, the Pudgy Penguins are a beacon of good vibes and positivity for everyone.

In May, Pudgy Penguins released Pudgy Toys, a line of physical toys with accompanying NFTs, on Amazon. These toys include stuffed penguins and figurines, each accompanied by a QR code granting access to Pudgy World. Pudgy World is linked to a blockchain wallet, soulbound (or non-transferrable) NFT, and tradeable NFT, accessible through email registration. 

As explained in the brand’s blog post, Pudgy Penguins used the physical toy as a “Trojan Horse” to seamlessly introduce NFTs to those buying the toys, thus turning it into a phygital product. The brand sold over 20,000 toys within the first few days, generating over $500,000 in sales. 

OpenSea: What was the inciting event or moment that sparked the idea for Pudgy Penguins’ recent launch? How did the concept evolve?

Luca Netz: [From] day one, knew we needed to transcend out of our little bubble that is web3. Over time and seeing launches that beat us to the punch, we knew we needed to tie the value proposition of digital ownership with NFTs to our physical products.

OpenSea: I appreciate the "Trojan Horse" approach to NFTs through toys. Could you explain how Pudgy Penguins decided to structure the launch this way?

Luca Netz: For $20 and three minutes of your time, Pudgy toys gives users their first blockchain wallet and NFTs. No other product out there onboards users as cheaply and effectively as ours. This is the Trojan horse [we're using] to onboard people into web3.

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OpenSea: As a brand, Pudgy Penguins is committed to bringing more individuals into the world of web3. How do you envision the evolution of the greater web3 ecosystem in the coming years to support these newcomers?

Luca Netz: Web3 needs to transition away from ponzinomics and shift towards pure collecting. As a current user base, we have to do a better job of supporting people doing it the right way, as opposed to rewarding ponzinomics.

OpenSea: Are there plans for additional upcoming phygital launches from Pudgy Penguins?

Luca Netz: Tons.

OpenSea: Speaking of phygital... The term "phygital" has received some criticism lately. How do you feel about it as a term?

Luca Netz: I don’t mind the word "phygital." Unlocking digital collectibles is how I prefer to explain the integration of our digital products with our physicals.

OpenSea: What are the biggest challenges and opportunities for the NFT space in the coming years?

Luca Netz: Our current degen culture is the biggest roadblock and challenge today.

OpenSea: What do you hope Pudgy Penguins achieves in the next year?

Luca Netz: By next year, we hope that when people think NFTs, they think Pudgy Penguins.

OpenSea: If someone at a party who knew nothing about the brand or the space asked you, "What's Pudgy Penguins?" how would you respond?

Luca Netz: We are the world's next great intellectual property brand, and the first great democratized IP.