Pixelmon, once infamous as the “worst NFT project ever,” is making a remarkable comeback through fractionalized nonfungible tokens (NFTs). In a candid interview with Cointelegraph, Giulio Xiloyannis, now the CEO of Pixelmon, recounted the project’s tumultuous history. Originally launched in February 2021 by a 19-year-old developer, Pixelmon aimed to create a Pokemon-inspired game where users could collect, trade, train, and battle monsters. However, what followed was a series of missteps that led to widespread ridicule within the crypto community.
Despite raising a substantial $70 million in Ether during its initial launch, Pixelmon’s unveiling revealed 68 “questionable” NFT characters, notably including “Kevin,” a character that symbolized the project’s downfall. Xiloyannis, who took over Pixelmon in May 2022, recognized the need for a complete overhaul of the artwork to breathe new life into the project.
Interestingly, Kevin, despite its association with Pixelmon’s rocky start, remains untouched as a symbolic figure within the crypto space. Xiloyannis explained the concept of “fractionalized NFT IP,” likening it to owning a share of royalties from iconic characters like Pikachu in the Pokemon universe. By owning a Pixelmon NFT, investors gain a stake in the royalties generated whenever their monster’s likeness is used beyond the game.
What sets Pixelmon apart is its decision to offer a free-to-play gaming experience, contrasting with other NFT-based games that rely on NFTs for access privileges. Xiloyannis believes that this approach is crucial for fostering real adoption among users. Furthermore, Pixelmon NFT holders receive royalties in the form of the MON token, distributed based on the rarity of their NFTs.
While Xiloyannis is optimistic about the fractionalized IP model, he acknowledges potential risks, particularly concerning the unpredictability of attention distribution. He emphasized that investing in fractionalized IP is akin to betting on characters that resonate with users both in-game and beyond.
Interestingly, the once-mocked Kevin has emerged as a surprising success story, with “OG Kevin” NFTs fetching substantial prices in recent sales. However, Xiloyannis cautioned that navigating the world of fractionalized IP can be akin to choosing unpopular Pokemon NFTs before a game’s launch, with outcomes uncertain until they unfold.
Pixelmon’s journey from ridicule to redemption exemplifies the dynamism and resilience of the crypto space. Through innovative approaches like fractionalized NFT IP and a renewed focus on user engagement, Pixelmon is carving out a unique niche in the ever-evolving world of blockchain gaming and digital assets.
