Futureverse Expands Its Horizons with Acquisition of Candy Digital

Futureverse, a burgeoning player in the metaverse space, has officially acquired Candy Digital, an NFT startup known for its partnerships with major brands like Major League Baseball (MLB) and Netflix. This strategic move aims to enhance Futureverse's offerings in digital collectibles and fan engagement.

Key Takeaways

• Futureverse has acquired Candy Digital, a notable NFT startup.

• Candy Digital has collaborated with MLB, Netflix, and DC Comics.

• The acquisition is part of Futureverse's strategy to expand its metaverse capabilities.

• Candy Digital's library will be integrated into Futureverse's blockchain, The Root Network.

Background of Candy Digital

Founded in 2021, Candy Digital emerged during the NFT boom, quickly gaining traction with its innovative digital collectibles. The startup was co-founded by notable figures including Fanatics CEO Michael Rubin and Galaxy Digital founder Mike Novogratz. Initially, Candy partnered with MLB, which served as its first major collaboration, and later expanded its portfolio to include partnerships with Netflix for the hit series "Stranger Things," NASCAR, and WWE.

In 2021, Candy Digital raised a significant $100 million in Series A funding, achieving a valuation of $1.5 billion. However, the NFT market's volatility led Fanatics to sell its 60% stake in Candy in 2023, with Rubin acknowledging the challenges of sustaining profitability in the NFT space.

Futureverse's Vision

Futureverse was established in 2022 through the merger of eight metaverse companies, aiming to create immersive digital experiences. The company raised $54 million in a Series A funding round in 2023, positioning itself as a key player in the metaverse ecosystem. Futureverse generates revenue through content, subscriptions, and APIs, providing tools and services to various brands.

According to Futureverse CEO Aaron McDonald, the acquisition aligns with the company's mission to leverage technology to enhance fan experiences. With the integration of Candy Digital, Futureverse plans to utilize its technology to develop new collections and variations from existing intellectual properties (IP).

The Future of Digital Collectibles

Matt Novogratz, co-founder of Candy Digital, will take on the role of Chief Commercial Officer at Futureverse, while CEO Scott Lawin will serve as an advisor. Novogratz expressed optimism about the future of digital collectibles, noting that despite the industry's ups and downs, the concept of ownership in digital spaces is evolving rather than disappearing.

He highlighted the growing interest among younger generations in platforms like Roblox, where digital ownership is a fundamental aspect of the experience. This sentiment reflects a broader trend in the digital landscape, where the appeal of NFTs and digital collectibles continues to resonate with fans.

Looking Ahead

As part of the acquisition, Candy Digital's library will be integrated into The Root Network, Futureverse's blockchain. This integration is expected to facilitate the creation of diverse collections and enhance cross-platform sharing capabilities.

The acquisition of Candy Digital marks a significant step for Futureverse as it seeks to redefine the digital collectibles landscape and provide fans with innovative experiences that blend technology and entertainment. With a growing team of approximately 200 employees, Futureverse is poised to make a substantial impact in the metaverse and digital collectibles space.

Sources

• Futureverse acquires NFT startup Candy Digital with partners like MLB and Netflix, Axios.