I'm giving PLBY Group ( PLBY
) two thumbs up on its non-fungible token approach and drop.
The company did not adopt a build-it-and-they-will-come strategy. It is clear its project developers understand the current space and they likely talked with folks active in the NFT investing and trading community before they released their collection.
The current project: Rabbitars. It is an NFT collection of 3D rabbit characters. They used Playboy's iconic logo for inspiration. The sale was rolled out in three phrases: Whitelist in Ethereum (ETH), public in U.S. dollars, and a public mint in ether on Wednesday. The collection is available on OpenSea for secondary trading.
The 0.1953 ETH price tag is among the highest I've seen for a collection similar to this. If it can sell out at this number, it is absolutely fantastic. It would bring in a little over $9 million. If I had any criticism, it would be they went a little aggressive on the price. Once you factor gas, this pushes a single mint over $1000 worth of ETH. That being said, it is an iconic brand and one doing things I believe in a correct manner.
Yes, there is a lore. A few collectors actually care about that, but most don't. It exists more to make the project managers feel like their project is "different" from others. It adds a little marketing and creativity, but projects can easily succeed without them.
Playboy is pursuing the PFP angle with a mix of 175-plus traits and differing rarities. They don't appear to be going with the on-chain random generation, so rare NFTs "could" find their hands into specific collectors' hands; however, I would put the chances extremely low, if not at zero, for Playboy. It isn't likely looking to hook up friends or rug-pull buyers. In short, it is not enough money to them for that to be a concern to me. I mention it, because it is a possible bearish argument; however, I see it as a weak one.
They followed the path of whitelist, then public mint. It is a good way to measure hype, interest, and generate some early sales. Unlike many projects, Playboy offered both ETH and dollar purchase options. The mistake I see many big names making is not finding a way to transact in ETH. Look, it is great Marvel and Disney ( DIS
) are getting into the fray, but the real trading volume resides in ETH. Everything else is a distant second. The projects that catch fire and run to five-digit, six digits, or seven figure individual NFTs are priced in ETH. Without it, your revenue will mainly come from the initial mint and your secondary revenue will be lackluster. We are seeing some "level 2" chains catch some volume, so that's a plus, but it's still not in dollar.
Lastly, they have served up some utility. Despite what some tell you, I don't believe offering you, the NFT owner, the ability to buy merchandise is a utility. Sorry, it's just more money for the merchandise seller, not a utility for the NFT owner, so let's dismiss that; however, Playboy is serving up metaverse events and experiences. That is utility. I might even say access to artists collaborations is a utility. It's more unique than merchandise. Also, art is an asset, so there may be a chance to purchase something that will immediately have more value in the public space, because it can only be purchased privately.
Overall, this is a nice win for Playboy. It should add eight-figures to the top line in the first three months. After that, we'll have to keep an eye on the secondary activity and the floor, but I believe Playboy is doing it right. Other big brands could learn from this one.