Reviving Pixelmon: The Infamous NFT Project Returns through Fractionalized Tokens
Summary:
Pixelmon, the infamous non-fungible token (NFT) project, aims to resurrect itself by leveraging fractionalized NFTs. Its current CEO, Giulio Xiloyannis, plans to renew the project and pave the way for the free-to-play game where Pixelmon NFT holders can earn royalties each time their monster's image is used. However, the project still faces potential risks like betting on the wrong character and a governance model that highly depends on community decisions. Despite the challenges, the project has received a positive response from Blockchain game publisher Immutable and successfully raised $8 million in seed funding.
Pixelmon, dubbed as the most disastrous non-fungible token (NFT), is planning to use fractionalized NFTs for its revival. Introduced to the market in February 2021 by a 19-year-old developer, Pixelmon quickly became renowned, albeit for all the wrong reasons, according to its present CEO Giulio Xiloyannis. Despite raising about $70 million in Ether upon its launch, the project faced ridiculing due to its 68 "dubious" NFT characters. Out of these, one stood out; “Kevin,” which has now become the symbol of the infamous NFT project.
Despite the challenges, Xiloyannis, after acquiring the Pixelmon project in May 2022, saw a way to resurrect it. He decided to rework all the artwork except Kevin, whom he deems as a symbol of the resilience of the crypto world.
The concept of “fractionalized NFT IP” can be daunting. Xiloyannis simplifies it by using Pokemon as an example. Imagine if in the 90s Nintendo minted 100 NFTs of Pikachu. Owning one of these would entitle the holder to 1% royalties from Pikachu’s usage. Thus, whenever Pikachu’s likeness is used for merchandising or appearances in games, the holder would receive 1% of the total royalties.
Pixelmon’s soon-to-be-launched game stands out from other NFT-based games because it allows free play – a decision Xiloyannis believes will drive adoption. Ownership of a Pixelmon NFT entitles one to royalties every time the monster’s image is used. Payments are processed in the form of the MON token. However, being owner of a Pixelmon NFT isn’t without risks. Aside from the risk of the game failing to gain traction, betting on the wrong character could lead to a major loss. Kevin, ironically, is predicted to be among the most coveted NFTs.
Another risk is associated with Pixelmon’s decentralised governance model. All licensing agreements are approved by community holders, and any adverse voting decision on such agreements could lead to business risk.
Despite the risks, there's been significant growth in the Mon Protocol community, which now has over a million wallets. Furthermore, several crypto firms are taking an interest in Pixelmon. On March 19, Immutable, the Blockchain game publisher, launched a $100 million fund, with a large part of the funds allocated to Pixelmon. Also, Pixelmon raised $8 million in seed funding on February 1, from firms such as Animoca Brands and Delphi Ventures.
Published At
3/26/2024 5:19:02 AM
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