【Aiming for a Global IP!] Interview with Luca Netz, CEO of Pudgy Penguins

We had the opportunity to interview Luca Netz, the CEO of "Pudgy Penguins," an NFT project aiming to establish globally recognized IP (intellectual property) content. Among the numerous NFT projects, Pudgy Penguins has gathered significant attention, and its adorable penguin characters have gained immense popularity.

・What are the latest updates in Pudgy Penguins?
・What is the "Penguin Summer" campaign?
・How does Luca think about the potential of the Japanese market?
・What are the essential points for successfully running a Web3 project?

We are going to talk about those topics and more. If you are interested in NFT blue-chip projects, managing NFT communities, or curious about the latest trends in overseas projects, keep reading!

PROFILE

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【Name】Luca Netz
【Position】CEO of Pudgy Penguins

【Background】Luca is an entrepreneur based in Los Angeles. In 2022, when the founder of the Pudgy Penguins project was ousted by the community, Luca stepped forward and acquired the project with 750 ETH (about $2,800,000 at the time), becoming the new CEO of Pudgy Penguins.

Popularizing the IP among the masses through events and merchandise sales

Q. What are the latest updates in Pudgy Penguins?

In 2024, Pudgy Penguins community continues to expand its influence and reach with worldwide events. Recently, we've organized events in the U.S. and Asia, and have already held several events in Japan as well.

Beside having events, we are also putting considerable effort into expanding their merchandise line, which features Pudgy Penguins characters. For example, our collaboration with Walmart, a major American retailer, in November 2023. This partnership allowed us to sell Pudgy Penguins plush toys, called "Pudgy Toys," in physical stores. The distribution channels are rapidly expanding, with merchandise set to be available at American retail stores such as "Target" and "GameStop" starting from May 2024.

As Pudgy Penguins continues to gain popularity among mainstream consumers through events and merchandise, it is expected that the influx of participants into the community will also grow as a result.

Q. Can you share us more details about "Penguin Summer" campaign?

"Penguin Summer" is a campaign that bridges the gap between the blockchain and the real world. In conjunction with the launch of plush toy sales at American retail stores "Target" and "GameStop," we kicked off "Penguin Summer" in May 2024.

The campaign aims to introduce the world of Pudgy Penguins to those unfamiliar with blockchain, through merchandise sales at these retailers. "Penguin Summer" helps drive this approach to reach the mass audience.

The potential hidden within the Japanese market, a king of IP

Pudgy Penguins　Official website

Q. How do you think about the potential of the Japanese market?

Japan is not only a hub for the IP industry but also a challenging market to establish new IP brands. However, at the same time, I see tremendous potential in this market. In September 2023, I had the opportunity to visit Tokyo and it might be one of my favorite places in the world.

This summer, the Pudgy Penguins project hosted side events at IVS2024 KYOTO and WebX2024. These events were designed to provide meaningful experiences not only for NFT holders but for anyone interested in Pudgy Penguins. Additionally, in preparation for these events, we worked closely with local distributors in Japan to ensure that Pudgy Penguins merchandise would be available.

Q. Do you have any advice for Japanese entrepreneurs who are trying to promote Japanese culture and traditions through the power of tokens?

When utilizing tokens, it's essential to keep the following points in mind:

・Determine your own positioning
・Clearly define the story behind your product
・Target the masses and incorporate tokens into the culture

Many project leaders feel pressured to develop highly original systems or services. However, this mindset often leads to unnecessary complexity. In truth, the majority of projects share comparable technical infrastructures and service components. The real differentiation comes from the conceptual aspects of the culture or tradition you aim to showcase.

From my perspective, Japan is at the forefront of the art and IP sectors on a global scale. The worldwide adoration for Japanese IP and characters stands as a testament to this. The key to successfully tokenizing lies in integrating tokens into the cultural movements already taking place in Japan.

Q. Can you tell us about your future plans and activities in Japan and Asia?

Pudgy Penguins has been actively implementing marketing initiatives in Asia. In May 2024, we announced a partnership with Lotte Group, a famous South Korean corporation. And this is just the beginning—we plan to share many more exciting updates in the future.

Continuously taking action is crucial for running a project successfully.

PudgyPenguins　Official website

Q. Are you a morning person, Luca?

I'm more of a night owl, but recently I've been trying to adjust my daily rhythm to be more active from early in the morning. I spend about 4-5 hours a day in meetings for project management. Then, I dedicate the remaining 4-5 hours to strategizing and planning how to move the project forward.

Q. How do you manage your project members?

Now we have 6 members in our team. Although the organization has grown in size, managing it hasn't been too challenging because each member works autonomously. Individual players proactively identify issues and decide on the tasks they should be working on independently.

Since I'm not a fan of micromanagement, I've aimed to create this kind of self-governing, decentralized project team from the early stages.

Q. Can you share the current state of the project's progress?

With over 90% certainty, the project is progressing exactly as envisioned. As if guided by the hand of the universe, the project is moving along a smooth trajectory.

Pudgy Penguins has all the necessary elements in place to become the world's largest and greatest NFT project. To make the most of this environment, I must fulfill my responsibilities as CEO. To ensure the project's success by any means necessary, I think about Pudgy Penguins 24/7, 365 days a year – even while eating or taking a shower. I believe that the more time and energy I pour into the project, the higher the chances of success will be.

Tokenization Makes "Cultural Value" Tradable

Pudgy Penguins　Official website

Q. Can you tell us about the potential that tokens hold?

Utilizing tokens enables the trading of "intangible items with cultural value." This allows the masses to become part of forming an IP brand. The idea of "tokenizing an IP and having countless individuals own it" was unthinkable by conventional wisdom. However, now, many people are enthusiastic about the "cultural value" issued as tokens.

In the early stages of the Pudgy Penguins project, NFTs played the role of "Customer Brand Tokens." To establish the Pudgy Penguins brand, NFT purchasers united to become the driving force behind its promotion. The fact that anyone can contribute to the growth of an IP as a project member is a very attractive feature unique to tokens.

We are now witnessing a new era where "culture is shaped by tokenization." In the future, NFT technology will play a crucial role in fostering culture.

Q. What are the unique points of Web3 projects compared to Web2?

A unique feature of Web3 is the ability to build billion-dollar businesses faster than in the Web2 era. However, while Web3 businesses have great potential, they also come with greater responsibilities. Therefore, you cannot run a Web3 project with half-hearted determination. But if you can overcome these difficulties, you will achieve results far beyond what was possible in Web2.

To promote the adoption of Web3, I am taking on the Pudgy Penguins project while facing many challenges. Through this experience, I am gaining a sense of fulfillment unique to Web3.

Q. How do you manage the expectations from the community when running a project?

The most important element, in my opinion, is "communication with stakeholders." It is necessary to clearly present the vision and share goals with the entire community. The key point here is to "set realistic and achievable goals based on reality." If you carelessly convey a grand vision, community members may be disappointed later.

In Pudgy Penguins project, we share short-term goals and my own initiatives with the community and provide opportunities for close communication. This approach builds trust between the project team and the community. Such mutual trust with the community is essential for leading the project to success.

The goal of Pudgy Penguins is to reach a state where "people around the world recognize and enjoy Pudgy Penguins." We share achievable goals within the community and diligently work on tasks to reach this final destination. Through this repetition, the expectations of participants are properly managed.

Q. Can you tell us about your future prospects?

The ultimate goal is to make Pudgy Penguins as a legacy for future generations. Everyone will eventually face death. In light of this, I wish to pass on Pudgy Penguins as a legacy to the next generation.

In 5 or 10 years, Pudgy Penguins should appear in all kinds of content, such as movies, TV shows, and games. I am confident in a future where "Pudgy Penguins will be accepted by hundreds of millions of people and loved worldwide," and I will continue to push the project forward.

Please keep an eye on the future developments of Pudgy Penguins.