Shares of collectible toymaker and pop culture company Funko Inc (NASDAQ:FNKO) are trading higher after unveiling a plan for NFTs.
What Happened: Less than a month after confirming the company was working on NFTs, Funko announced Thursday it’s acquiring a majority stake in TokenWave LLC, the parent company of TokenHead. The acquisition gives Funko control of one of the leading mobile apps and websites for showcasing and tracking non-fungible tokens.
TokenHead displays over 10 million NFTs and has over 100,000 visits per day.
“Funko is thrilled to advance another platform that our fans and collectors will love and find valuable,” said Funko CEO Brian Mariotti.
Funko expects to launch its initial NFT offerings in June with a unique property launched each week starting at a price of $9.99. The NFTs will be sold on the WAX platform, one of the leading decentralized wallets on the blockchain.
Why It’s Important: Funko has a large catalog of licensing partners ranging from Walt Disney Co (NYSE:DIS), World Wrestling Entertainment Inc (NYSE:WWE), AT&T (NYSE:T) and professional sports leagues, Funko could become a major player in licensed NFTs.
“Our amazing licensing partners are excited about our entry in this new digital space and we believe the diversity of our licensing portfolio sets us up for long-term success,” Mariotti said.
Funko is betting on the long-term success of NFTs and also providing a cheap entry point for collectors and possibly investors: “By backing the rarest of the Funko NFTs with exclusive redeemable Funko Pop!s, we are poised to enter the NFT market in a very unique manner.”
Funko could see increasing demand and sales of its Funko Pop!s due to the connection of physical and digital assets. This could help boost Funko sales beginning in June and see new collectors make their first-ever Funko purchases.
FNKO Price Action: Shares of Funko are up 12% to $22.30 at publication time.
Disclosure: The author is long shares FNKO.
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