Cryptoassets: "NFTs are unlikely to be profitable as a stand-alone business" (M. Rubin, Fanatics)

"Over the past year, it has become clear that NFTs are unlikely to be sustainable or profitable as a standalone business. Aside from physical collectibles (trading cards) driving 99% of the business, we believe digital products will have more value and utility when connected to physical collectibles to create the best experience for collectors," said Michael Rubin, founder and executive chairman of Fanatics (US manufacturer and distributor of licensed sports products), in an internal letter relayed by CNBC on 04/01/2023.

Fanatics has sold its 60% stake in NFT company Candy Digital, which was founded in June 2021, according to the US financial news outlet. The stake was acquired by a group of investors led by crypto-currency investment bank Galaxy Digital.

"Divesting our ownership stake (in Candy Digital) at this time allowed us to ensure investors were able to recoup most of their investment via cash or additional shares in Fanatics - a favorable outcome for investors, especially in an imploding NFT market that has seen precipitous drops in both transaction volumes and prices for…