It was recently announced that Michael Rubin’s sports platform company, Fanatics, is divesting its 60% stake in Non-Fungible Token (NFT) company Candy Digital. This news has left many people wondering why this decision was made and what it means for the future of NFTs. In this article, we will explore the reasons behind Fanatic’s divestment as well as some of the potential implications that this decision may have on the world of NFTs.
The reason behind the divestment is not yet clear. However, it could be related to a recent announcement by Fanatics that they are investing in a new venture called “The Brand Collective” which is set to focus on connecting brands with digital influencers. This could mean that Fanatics wants to focus its resources on building up The Brand Collective and no longer wishes to invest in Candy Digital.
Candy Digital focuses heavily on creating and trading digital art, music, memorabilia, and other collectibles through blockchain technology and cryptocurrency transactions. It has gained a lot of attention lately due to its role in creating high-end digital collectibles for celebrities like Justin Bieber and Paris Hilton. With the divestment from Fanatics, it remains to be seen whether or not Candy Digital will be able to continue producing these pieces without its major investor’s support.
Implications for NFTs;
The divestment of Fanatics’ stake in Candy Digital could potentially have major implications for the future of Non-Fungible Tokens (NFTs). With less investment coming into the space, there may be fewer opportunities for smaller companies looking to get involved with NFT projects. Additionally, this could lead to an overall reduction in innovation within the sector as larger companies are less likely to take risks on new projects without significant investment backing them up.
It is still too early to tell what exactly this means for NFTs but one thing is certain: it is never a good sign when an established investor like Fanatics decides to pull out of an industry as quickly as they did with Candy Digital. We can only hope that despite this setback there will still be enough interest and investment from other players in order to keep non-fungible tokens alive and thriving in today’s ever-evolving digital economy.
