Pixelmon NFT Reincarnated: Fractionalized Ownership Model Aims for Redemption

Once ridiculed as the "worst NFT project ever," Pixelmon is leveraging fractionalized NFTs in a bid to resurrect itself. Acquired in 2022, the project aims to transform its intellectual property into valuable assets. By owning a Pixelmon NFT, holders will receive royalties whenever the monster's likeness is used outside the game, similar to how an NFT owner of Pikachu would receive royalties for its likeness on merchandise.

Pixelmon NFT Project Undergoes Reinvention with Fractionalized Ownership Model

Pixelmon, the crypto project once maligned as the "worst NFT project ever," is attempting a resurgence with an innovative fractionalized ownership model. Launched in 2021, Pixelmon initially garnered notoriety for its underwhelming NFT offerings, including the infamous "Kevin" character.

Following its acquisition in 2022, the project's new CEO, Giulio Xiloyannis, recognized the need to revamp the artwork. However, the iconic Kevin character remained, symbolizing the project's resilience and the enduring nature of blockchain assets.

Understanding Fractionalized NFT IP

Xiloyannis explains the fractionalized NFT IP model, referencing Pokemon as an illustrative example. Imagine if Nintendo had issued 100 Pikachu NFTs in the 1990s, each representing a 1% ownership stake in the character's royalties. Every time Pikachu's image was used on merchandise or in-game purchases, NFT holders would receive a commensurate share of royalties.

Unlike conventional NFT-based blockchain games that restrict access to paying players, the revamped Pixelmon game will be free-to-play. NFT holders will instead earn royalties from the utilization of their monster's likeness outside the game, similar to the hypothetical Pikachu NFT example.

Risks Associated with IP Ownership

While Xiloyannis expresses confidence in the fractionalized IP model, he acknowledges potential risks. Most notably, the distribution of attention and popularity among different characters can impact the value of individual NFTs. For example, players could purchase an NFT for a character that receives significant in-game usage but generates minimal external revenue.

Ironically, the unfavorable reputation of "Kevin" may ironically make it a desirable NFT, as collectors speculate on the likelihood of its popularity. In recent weeks, some of the 119 available "OG Kevin" NFTs have sold for over 4 ETH (approximately $14,000).

Xiloyannis cautions against trying to predict which monsters will gain the most popularity, comparing it to investing in an unpopular Pokemon NFT before the game's launch. However, the fractionalized ownership model offers collectors a unique opportunity to participate in the growth and revenue generation of the Pixelmon ecosystem.

Building upon a Legacy of Resilience

Pixelmon's fractionalized NFT IP model represents a bold attempt to reinvigorate a project that had stumbled in its early days. By leveraging the power of blockchain to empower NFT holders with ownership stakes in intellectual property, the project aims to create a sustainable and rewarding gaming ecosystem. While risks remain, Pixelmon's enduring legacy as the "worst NFT project ever" may ultimately serve as a testament to the resilience and adaptability of the blockchain industry.