EXCLUSIVE: How Pudgy Penguins, Pixel Vault Plan To Shake Up Web3: 'Trailblazing As A Unit'

How can two Web3 startups keep the momentum going during a bear market?

According to Pudgy Penguins CEO Luca Schnetzler, it's less about competing with each other and more about "linking arms and trailblazing as a unit."

"I love this moment," Schnetzler said, referring to the current crypto winter which saw the price of non-fungible tokens (NFTs) plummet.

See Also: 'Ape Talk' At Benzinga's Future Of Crypto — Why 'Absurdity' Of Bored Ape NFTs Makes Sense

"The space is in its infancy," Schnetzler told the crowd Wednesday at Benzinga's Future of Crypto event in New York City. Traders will "move on," while the "real participants" will "step up to the plate."

One of those players is Pixel Vault CEO Sean Gearin who joined Schnetzler on stage for a panel discussion, "Using NFTs To Foster Community And Build On-Ramps Into Web3," moderated by Benzinga reporter Chris Katje.

"No one likes to see prices going down," Gearin said. The average price of an NFT sale in 2022 fell from $3,894 in May to $293 in July. That's a drop of 92% in a span of just two months.

From January to September, NFT trading volume collapsed by 97%, from $17 billion in value to just $466 million.

Still, "the community has grown stronger during the bear market," Gearin insisted. "We're left with people who are passionate about what we're trying to build."

In fact, Schnetzler said the space was poised to start competing with the likes of Walt Disney Co. DIS — at least when it comes to memorable characters and developing valuable intellectual property (IP).

Whether it's penguin plushies, toys or games, the goal is to appeal to everyday consumers, adults, and kids, alike, Schnetzler explained.

"Meet them at their mark," he said, referring to Disney. "Take market share from them."

For Gearin, Pixel Vault also has multimedia aspirations. The company, backed by 01 Advisors and Velvet Sea Ventures, boasts a giant NFT collection of superheroes and comic characters.

It also has partnerships in place with big-name brands like Adidas AG - ADR ADDYY, DraftKings Inc. DKNG and Ultimate Fighting Championship.

"The positive vibes will come back," Gearin said. "In many ways, we're in a better place than where we were eight or 12 months ago."

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Photo: Chris Katje, Luca Schnetzler and Sean Gearin, photo by Anthony Noto