Shares of Funko (NASDAQ: FNKO) closed nearly 45% higher in March as the company made steps towards entering the non-fungible tokens (NFT) market.
Fundamental analysis: A majority stake in TokenHead developer acquired to enter the NFT market
Pop culture products company Funko announced Thursday bought a majority stake in TokenHead developer TokenWave, a mobile platform, and website for tracking NFTs.
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The move will facilitate Funko’s foray into the NFT market and will bring digital assets to the company’s pop culture platform. The company hopes to launch its first NFT offerings in June this year, including a unique property every week with a minimum price of $9.99.
Funko will sell its offerings on the WAX platform, a blockchain-based decentralized wallet that offers verifiable authenticity for purchases of Funko NFTs.
“Funko is thrilled to advance another platform that our fans and collectors will love and find valuable,” said Brian Mariotti, CEO of Funko.
“Our strategy in this space is clear – bring the value-added NFT opportunity to our licensing partners to leverage our broad range of existing pop-culture content across Television, Movies, Sports, Music, Anime, Video Games, and Comic Books. Our amazing licensing partners are excited about our entry into this new digital space and we believe the diversity of our licensing portfolio sets us up for long-term success.”
Mariotti added that the combination of Funko Pop! digital non-fungible tokens with Pop! Vinyl figures could be a “gamechanger”. He also said that the NFT world revolves around content and that his company has been providing fans with “the content they love for over 20 years.”
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Technical analysis: Up over 100% YTD
Funko stock price has doubled in value since the beginning of the year. The NFT story has helped the stock to extend its rally above the $20 handle for the first time since October 2019.
The price action has stopped at the resistance area in the $22 to $23 region. This is where the 127.2% Fibonacci extension line and descending trend line are located. Lower, the nearby support comes in the region of $18.
Pop culture collectibles maker Funko said it purchased a majority stake in TokenHead developer TokenWave, a platform for tracking NFTs. Shares closed above the $20 handle for the first time since 2019.