As the crypto market continues to lay in shambles, there’s been yet another shakeup.
Fanatics plans to divest its 60% stake in Candy Digital, an NFT company with which it created virtual trading cards, according to a CNBC report. It will sell to an investor group including the original other founding shareholder.
“Over the past year, it has become clear that NFTs are unlikely to be sustainable or profitable as a standalone business,” Fanatics founder Michael Rubin reportedly wrote in an internal email.
- Only about 18 months old, Candy Digital came onto the NFT scene strong.
- Co-founded by Fanatics, it boasted deals with MLB, NASCAR, WWE, and others. The company was valued at $1.5 billion in October 2021 after a $500 million Series A funding round.
- But by November 2022, the company laid off 100 employees — a third of its workforce.
Now, Fanatics is distancing itself from the NFT market altogether.
In the email, Rubin wrote: “Aside from physical collectibles (trading cards) driving 99% of the business, we believe digital products will have more value and utility when connected to physical collectibles to create the best experience for collectors.”
The company has plenty of options for physical collectibles after acquiring Topps last January.