Candy Digital faces many challenges as the Web3 world continues to endure the ongoing crypto winter. In November, we had to lay off a significant portion of our workforce. I have even worse news. Fanaticannounced the sale of its 60% stake in the company.
Why Fanatics is leaving Candy Digital
Fanatics has sold its stake in Candy Digital to an investor group led by Galaxy Digital. In a note to staff, Fanatics CEO Michael Rubin explained that the decision was made after careful consideration of various factors.
After looking at all the factors on the table, this was a fairly straightforward and easy decision for several reasons, said Rubin.
Despite a promising start, Candy Digital has recently suffered a series of setbacks. The company will launch his service in mid-2021 and has quickly secured lucrative partnerships, including one with Major League Baseball. At the time, many sports leagues were considering using his NFTs, and Candy Digital’s future looked bright. But recent events have put a damper on the company’s success.
NFT projects, including Candy Digital, faced a decline in trading when the cryptocurrency market slumped. As Rubin noted in his memo, this added to the challenges the company was already facing.
Over the past year, it has become clear that NFTs are unlikely to be sustainable or profitable as stand-alone businesses, he said, adding that the company will continue to dabble in NFTs, but will continue to do so as an independent company. It added that it would not act as a business entity.
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*All investment/financial opinions expressed by NFT PLAZA are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Tokoni Uti has written extensively on blockchain and cryptocurrencies over the years. Her work has been featured on sites such as BTCmanager and Blockchain Reporter. She has a degree in Corporate Communications.