Scott Lawin, the CEO of Candy Digital, discusses the navigation of the NFT landscape following its initial boom.

Scott Lawin's career trajectory has been quite diverse, marking significant milestones in finance, technology, and architecture. After graduating from MIT with a degree in architecture, he committed 27 years to the finance sector, where he excelled as a global business developer, investor, and innovator, with a keen interest in the fusion of technology and finance.

His journey into the cryptocurrency realm began in 2013 and intensified during the ICO explosion of 2016. Despite the allure of the technology, he soon recognized that the cumbersome experience around cryptocurrency onboarding was hampering widespread acceptance among those unfamiliar with crypto. This realization led him to conclude that licensed digital assets could serve as a powerful means of introducing millions to the space.

In 2020, Scott founded Candy Digital with a mission to offer genuine digital products and experiences that resonate with fans of sports, entertainment, and cultural influences. Understanding the need for a reliable partner and an intuitive platform to leverage opportunities in the crypto arena, Candy Digital was established.

In this conversation, we will delve into how Scott Lawin views Candy Digital's journey through the current NFT landscape, the hurdles and potentials he sees ahead for the industry, and his vision for the company's future impact.

What sparked your interest in NFTs, and when did you first encounter them?

I recall coming across CryptoKitties during their initial launch and being baffled by someone spending $100,000 on a digital image of a cartoon feline. Nevertheless, as someone who appreciates art, I found the idea of empowering creators through royalties and validated ownership via NFTs incredibly thrilling. As we increasingly transition into a digital world, I genuinely believe NFTs will significantly shape the ownership economies of tomorrow and redefine our digital identities.

Why did you decide to concentrate on sports and entertainment collectibles for Candy Digital rather than exploring other NFT avenues?

Both sectors boast enormous audiences filled with passionate fans, and digital collectibles have the power to expand and enrich the experience of real-world collectibles. We see NFTs as a fresh way for fans to possess a tangible piece of their enthusiasm and engage with their communities and beloved content in innovative ways.

Fanatics recently sold 60% of its stake in Candy Digital, suggesting that NFTs are likely to function as an integrated product/feature rather than an independent business. What are your thoughts on that?

Fanatics was an excellent collaborator to kick things off, and they still hold a minority stake in Candy. While Fanatics primarily focuses on physical sports merchandise, Candy has established itself as a digital-first entity aimed at empowering brands and content owners in the web3 realm. Nonetheless, since sports forms the backbone of our operations, we foresee future opportunities to collaborate more closely.

Candy Digital disclosed a $38 million fundraising effort in an extended Series A round, stating that this capital will be directed toward overhauling the marketplace's development. What gave investors the confidence to invest, and what new features can we expect with this revamp?

Our investors align with our belief that digital assets will become central to how customers and fans interact, and that globally recognized brands and intellectual property holders will consistently seek out a top-tier partner to navigate this evolving landscape. In 2023, we're rolling out new technologies to unveil products and partnerships while also integrating gamification and engagement features to elevate the overall experience for our collectors and community.

Can you share any thrilling partnerships or collaborations on the horizon, and what impact they might have on both Candy Digital and the wider NFT ecosystem? What do you prioritize when scouting for new collaborations?

Despite the downturn in NFT trading volumes over the past year, we view this phase as an opportune moment to ally with other frontrunners in the sector. Our goal is to develop and broaden our technological foundations, enhance our product offerings, and grow our consumer base.

Both Candy Digital and Meta have reduced their workforce recently, and Meta has even discontinued its NFT features less than a year after launch. What do you believe prompted Meta to withdraw from NFTs, and how will this affect NFT marketplaces?

It's not my place to speculate on the motivations behind Meta's decisions, but the tech industry did experience a substantial adjustment last year, prompting many firms to reassess their strategic approaches and financial plans in light of shifting economic conditions. While Meta could have played a role in hastening mainstream NFT adoption, I don’t anticipate their exit will significantly detriment the broader NFT market in the long run.

What obstacles have you faced in launching and expanding Candy Digital, and what strategies have you employed to overcome these challenges?

The main hurdle is educating and transitioning web2 users into the web3 environment. We believe our unique product lineup, built with a clear focus on enhancing the fan and collector experience, can address this challenge effectively. The NFT hype over the past two years left many brands, investors, and customers feeling disillusioned. Still, our commitment to constructing a sustainable business model in partnership with others is what we believe will deliver lasting value.

How do you envision the NFT market changing in the coming years, and what strategies will you utilize to maintain competitiveness in such a fast-changing landscape?

NFTs will undoubtedly play a more significant role in engaging customers and fans, with leading global brands employing NFTs in various areas, such as products, experiences, marketing, and loyalty initiatives.

What is your current perspective on the NFT industry, and what role does Candy Digital occupy within it?

The NFT sector is still working through the aftermath of its meteoric rise and swift decline in 21-22, as transient participants exit and those committed to the field continue to develop. Many newcomers lacked plans for building scalable and sustainable businesses, forcing all players, including Candy, to adapt to the new market realities.

Despite these challenges, the influx of global brands entering the web3 sphere continues to rise, and consumer applications around identity, community engagement, and loyalty are becoming increasingly appealing. Candy aims to keep innovating and delivering remarkable products and experiences for our clients and partners, as we firmly believe that web3 is the future of brand-consumer interaction.

Where do you foresee the NFT landscape heading in the near future?

I am thrilled about the potential of digital collectibles to forge stronger community links and create shared experiences, both online and offline. We advocate that NFTs can provide far greater utility to their owners, with anticipations of more thrilling use cases emerging around generative collections, gamification, augmented reality, token-gated access, community DAOs, and integrative digital/physical projects.