Pudgy Penguins Have Sold $10 Million Worth of Toys—Now Walmart Wants More

Ethereum NFT project Pudgy Penguins announced Tuesday that it will launch a second line of toys inspired by the colorful profile picture (PFP) characters, in an expanded tie-up with Walmart that includes a presence at 1,100 additional stores.

The Pudgy Toys line, which includes plush toys, action figures, and “blind box” style mystery igloo collectibles, will be offered across 3,100 total Walmart locations. Last year, the first line of Pudgy Penguins toys debuted across 2,000 Walmart stores in a landmark push for mainstream adoption of Web3 intellectual property.

A Pudgy Penguins spokesperson told Decrypt that the Pudgy Toys line has already racked up $10 million in sales in less than a year, with over 750,000 toys sold.

“Our strategic collaboration with Walmart has allowed Pudgy Penguins to reach new heights in the consumer market,” Pudgy Penguins CEO Luca Netz said in a press release. “The expansion into additional Walmart locations, alongside exclusive toy offerings, underscores the enduring appeal of Pudgy Penguins characters.”

The toys are also available through other retail stores like Five Below, but are most prominently featured at Walmart stores, some of which have standalone display units in the aisles. They’re also sold online through Amazon.

Each Pudgy Penguins toy has a QR code that unlocks NFT items and unique customizations within the upcoming Pudgy World game on Ethereum scaling network zkSync.

Netz previously told Decrypt in December that they saw a roughly 20% conversion rate on buyers scanning the QR codes and claiming their free NFT items, but that the team aimed to push that to 50% through branding refinements.

Pudgy Penguins has been one of the biggest success stories in the NFT world over the past year. Amid a gradually sinking market for tokenized collectibles, Pudgy Penguins has found ways to bring its products to larger audiences while returning value to holders—the Ethereum NFTs have seen a 5x spike in price over the last three months alone.

And the Pudgy Toys can benefit holders directly too. Pudgy Penguins launched an IP licensing scheme through its OverpassIP platform, which lets the company utilize the artwork from submitted NFTs in exchange for a royalty fee on sold toys. According to the website, that royalty share can be as much as 20%, depending on the toy type.

Decrypt named Pudgy Penguins its 2023 NFT project of the year due in part to its mainstream expansion efforts and success amid the brutal bear market. For more on the Pudgy path to here and what’s next for the collection, read our December interview with Luca Netz.

Edited by Ryan Ozawa.