Funko Culture Products Go Digital with NFTs

NFTs are taking the digital collectibles space by storm. On August 1, 2021, Funko announced that they will be entering the Non-Fungible Token (NFT) market. This investment extends the company’s pop culture products and licenses into the digital space. Here are the high level details of the announcement: 

1. Funko products will be sold on the WAX platform, the leading decentralized wallet on the blockchain, which provides verifiable authenticity for purchases of Funko NFTs
2. Funko acquired a majority ownership stake in TokenWave, LLC, the developer of TokenHead, a leading mobile app and website for showcasing and tracking Non-Fungible Token (“NFT”) holdings.

So what is an NFT?
Non-fungible token (NFT) is an economic term that describes things like a toy, artwork, or furniture. They have unique properties and are not interchangeable. NFTs are tokens that represent ownership of an item. They enable us to tokenize things like art, collectibles, and even real estate. Each tokenized item can only have one official owner and no one can modify, change, or duplicate the record of ownership. NFTs are secured on Ethereum, a decentralized blockchain with smart contract functionality.  

Fungible items, on the other hand, can be exchanged because their value defines them rather than their unique properties. For example, dollars are fungible because $1 USD is exchangeable for $1 EURO.

How do NFTs work?

Each NFT token minted has a unique identifier, an owner, and information that is verifiable. They live on the Ethereum blockchain and can be bought, sold, and traded on any Ethereum-based NFT marketplace. In simple terms, if you own a NFT: 

• You can prove you own it
• The NFT can not be manipulated in any way
• You can sell or trade it 
• You can hold it and keep it secure in a digital wallet on the Ethereum Blockchain

Understanding the basics around NFTs is important before you jump into the market. There are risks and mistakes you can avoid by simply understanding how things work. 

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