Fanatics-Owned NFT Venture Undergoes Layoffs

Candy Digital, the sports and entertainment NFT startup backed by Fanatics, has laid off more than a third of its workforce of approximately 100 employees, according to Sportico.

The NFT platform, which operates independently from Fanatics, was valued at $1.5 billion in October 2021 following a $100 million Series A funding round co-led by New York-based VC firm Insight Partners and Softbank Vision Fund 2, but the wider NFT market has struggled in 2022..

Candy Digital was founded in June 2021 by Michael Rubin, executive chairman of Fanatics, along with Galaxy Digital founder and CEO Mike Novogratz and entrepreneur and investor Gary Vaynerchuk. Fanatics was described as the majority owner at the time and said that it would tap its existing customer base to promote Candy.Fanatics has an NFT vertical within Topps, the trading card brand acquired in January.

Candy Digital launched with the official Major League Baseball license, and has sold a number of collections based on the league and its teams. The platform has also formed partnerships with World Wrestling Entertainment (WWE), NASCAR Cup Race Teams, and a number of college athletes. The company has also expanded into entertainment-themed digital collectibles, including with a Netflix alliance that has yielded various “Stranger Things” NFTs.