Globally, Panini is the largest sports trading card business and a household name in its own right, partnering with global brands such as FIFA, Disney and NASCAR.
Globally, Panini is the largest sports trading card business and a household name in its own right, partnering with global brands such as FIFA, Disney and NASCAR.
Last year, the company began to venture into the digital collectibles space. In particular, we are experimenting with NFT technology to create rarity and value with digital cards as much as we do with physical collectibles.
The timing of this move may have coincided with the dramatic crash of the global market for NFTs, but Panini is pushing ahead with its plans. As Jason Howarth, Panini USA’s vice president of marketing and digital, told me, the main impact of this collapse will be those who entered the market simply to make quick money, and those who entered the market in the long term. It would be to “weed out” those who find value. technology.
“We have focused on building a private, governed, and sustainable blockchain marketplace, so we don’t have to worry about fakes appearing on the market…and we are currently selling our NFT products,” he said. The only way it can be consumed is as follows.” Our private blockchain. “
One of the reasons NFTs make so much sense for your business is that they capture a valuable slice of the resale market. Cards from the company’s most popular series, such as FIFA and NBA, often trade for tens of thousands of dollars, so this could create a lucrative secondary income stream.
Cryptocurrency collapse
Of course, NFTs and the broader crypto space have been rocked recently by both a dramatic collapse in the trading value of assets and a number of frauds and business failures. The most notable of these is the collapse of crypto exchange FTX and Silicon Valley Bank, which banked many prominent players and startups in the industry.
Do these failures suggest that the great Web3 experiment has reached its end before it even began? Well, Panini doesn’t think so. Some believe that what we are seeing is similar to the 2000 dot-com stock market bubble burst. The technology itself is healthy, but there are still not enough truly worthy use cases to support the industry that has emerged around it.
Panini USA has maintained centralized control over its marketplace rather than jumping headfirst into big Web3 ideas such as decentralization and user-owned online communities. The aim is to create value in the market through interactions with customers and collectors, rather than boosting valuations with investments from venture capitalists.
Howarth describes this as building a “sustainable” market for NFT goods.
“I think it helped us weather the crypto storm,” Howarth said.
“There are many exciting elements emerging in the blockchain marketplace. It will become more user-friendly and user-centric, allowing users to see individual card sales data, pack data, and collection data by collector. It allows us to really understand what is going on in the market.”
So part of the philosophy is that the move to digital collectibles may not offer the same tactile experience, but instead allows collectors to immerse themselves in the stats and data they can create using digital platforms.
“There is a showcase where users can show off their favorite NFTS. Also, if an existing NFT is for sale, they can see its value and buy it in one click.”
Unlike the majority of NFT marketplaces in operation today, Panini’s marketplace users will use US dollars to buy and sell collectibles rather than going to get cryptocurrency. This can be a technically difficult process for some and can also expose unsuspecting users to scams and scams.
Howarth said: “There was a lot of uncertainty and people didn’t understand how to go out and get a cryptocurrency wallet and buy cryptocurrency. I wanted them to do it, but the best thing to do was just leave it alone and the transaction will be in USD.”
hybrid collectible
One of the innovations driving engagement is the bundle of physical trading cards and digital NFT versions.
“There are pluses and minuses to both,” Howarth said. Nothing will change, in fact, the physical trading card category continues to grow around the world, including Asia, Australia, New Zealand, and Europe.
“I think these tracks will have elements of both.” [physical and digital collectibles] coexist. “
According to data from NFT sales tracking website cryptoslam.io, sales of Panini NFTs generate approximately $2.38 million in revenue per month. This includes retail sales and resale between collectors. This demonstrates that collectibles continue to have cultural relevance at a time when a myriad of competing channels may capture the attention of viewers, especially young people.
“This is a space where people can disconnect themselves from the chaos of the world and collect their favorite teams, players, and other things they hold dear,” Howarth says. And let him connect with the kids – I know my kids…they go into their rooms, use social media, play video games. We don’t always have that connection, but when we’re opening packs of cards together and talking about the players… it doesn’t go away. “
you can click here Watch Panini’s full conversation with Jason Howarth. There, we delve deeper into the trading card giant’s future plans for digital collectibles and NFTs.
