How Luca Netz saved NFT brand Pudgy Penguins with plushies

Pudgy Penguins, an NFT brand launched in 2021, avoided bankruptcy through a major strategic shift by expanding into the toy industry. In 2022, the company had only six months of financial runway, but current projections indicate $50 million in revenue for 2025.

Luca Schnetzler, known online as Luca Netz, acquired parent company Igloo for $2.5 million in Ether in April 2022, amid a decline in the collection’s value. Shortly after, the collapse of the Terra ecosystem triggered a prolonged bear market, drastically reducing the value of NFT assets.

To ensure business continuity, Netz launched a line of physical toys, initially to cover operating expenses. The expansion later generated significant revenue, transforming Pudgy Penguins into a profitable brand in both physical and digital collectibles.

Currently, the brand benefits from a surge of interest in collectibles, which could support an NFT market rebound. Netz’s prior experience in e-commerce and social media marketing facilitated the company’s transition to the physical market.