Pixelmon CEO Bets on Big Return for Distributed NFTs

Crypto project Pixelmon, once dubbed “the worst NFT project ever” – is turning to non-fractional tokens (NFTs) to bring it back from the dead.

Originally launched in February 2021, the Pixelmon project became an instant sensation for the wrong reasons, the project's current CEO Giulio Ziloyanis explained in an interview with Cointelegraph.

The project was launched on February 25 by the 19-year-old developer, who promised to deliver a Pokemon-esque game where people can collect, trade, train and battle monsters called Pixelmon.

However, the project became the laughingstock of the crypto world after it raised $70 million in Ether (ETH) at the time, but at launch it featured 68 “questionable” NFT characters, including “Kevin” – an awkward-looking character later described as “the worst NFT project ever.” ” of what is described as.

When Xiloyannis stepped in to found the Pixelmon project in May 2022, he knew immediately that if the team was going to revive the project and do something for the community, all of the artwork would have to be redone.

The only non-renewable NFT was Kevin, which Xiloyannis described as a symbol of something like crypto and should not be changed.

“Yes, it's a funny meme, but it's a sign that nothing will die in blockchain – there's resilience in the industry. That is why we hold him as a symbol and that is why we are taking care of him.

Fractionation of NFTs intellectual property

Xiloyannis knows how the term “fractional NFT IP” can be confusing to many, but says it's relatively simple once the facts are broken down. He points to Pokemon as an example, and the seemingly complex convergence of blockchain gaming, NFTs and intellectual property rights.

Imagine if Nintendo released 100 NFT Pikachu in the 90's and by owning one you got 1% royalties from Pikachu's usage. “Every time a shirt, mug, or in-game skin is purchased, you'll receive a chain of royalties equal to 1% of Pikachu's total royalties.”

Unlike other NFT-based blockchain games that use NFT to enforce “restricted” access to the game, the soon-to-be-released Pixelmon will be completely free to play, but Xilyoannis holds the key to true adoption.

By owning a Pixelmon NFT, owners are entitled to royalties every time the monster's avatar is used outside of the game, similar to how a hypothetical NFT for Pikachu would pay royalties to its owner every time it was placed on a piece. March or appear in another show or play.

Holders of Pixelmon NFTs are paid in the form of MON Protocols' Native MON token, which recently held a pre-sale to holders and distributes selected MON amounts to holders based on NFT rarity.

There are still risks with IP ownership.

Although Xiloyannis said that he “clearly” believes in the segmented IP model, he explained some of the risks that could come to holders.

Apart from the worst-case scenario – where the game simply does not take any action and NFT owners are not paid enough for their initial investment – Xiloyannis' main problem is in the distribution of attention.

“Split IP ownership is a very, very realistic bet as to which character will ultimately find love. You can buy a lot of usable assets in the game, but no one spends money outside of the game,” he explained.

Interestingly, Xoloyannis explains that this is one of the reasons why the infamous “Kevin” is one of the most sought-after NFTs in the collection, with holders trying to place bets on which character will be used the most. Over the past month, several of the 119 “OG Kevin” NFTs have been sold for over 4 ETH (approximately $14,000).

However, he warns that trying to pick the right monster is like buying an unpopular Pokemon NFT before the game starts, only to find out later that you didn't pick the right one.

Related: Web3 games must be ‘fun and engaging' to be sustainable – OKX exec

“The danger is when you have a curve where the top of the curve is very happy because you have a very skewed set of properties thrown at the right character, but the tail is not very happy. he said.

The second-biggest risk, says Xiloyannis, is the structure of the Pixelmon company itself. Built on a decentralized management model, Pixelmon – a perpetual licensee of all IP rights – enforces all license agreements through the community of owners.

“Imagine a paradoxical situation. Disney wants to put one of our characters in the next Frozen movie but for some strange reason our owners vote no. So there is some business risk. And that business risk is basically the biggest risk. “

“Ultimately, we were convinced that it would be better for the IP's longevity to let the early fans — the people who knew what made it great — control where it went, than let Netflix destroy The Witcher,” he added.

Xiloyannis added that the Mon protocol community has grown significantly over the past eighteen months, currently boasting over 1 million wallets by March 2023.

The “Battle Arena” monster fighting component of the game is slated to launch this year, while the open-world role-playing component “Hunting Fields” is slated for release in 2025.

Several crypto companies are looking at Pixelmon with high optimism. On March 19, blockchain game publisher Immutable launched a $100 million fund, choosing to allocate a significant portion of that capital to Pixelmon.

Additionally, on February 1, Pixelmon raised $8 million in a seed investment round, including firms such as Animoka Brands and Delphi Ventures.

Magazine: Bitcoin ETFs Make Coinbase a ‘Honeypot' for Hackers and Governments – Treasure CEO