# Our Frame Web3 began with promises of empowerment. **Yet, it became a playground for artificial scarcity. Empty promises, and endless drops chasing quick cash by monetizing hypes.** Luca Netz chose a different path. He bought a failing NFT project, turned it into a real consumer brand, and sold it in Walmart and Target. He proved that Web3 can still fulfill its original mission: ownership, participation, and shared growth. This isn’t a Web3 redemption story. It’s a rejection of everything the industry got wrong and a reminder that building something real always beats selling a dream. # The Profile ![image alt](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/5e112a0e-e4f5-46d0-be62-53f5a51dbb53) Luca Netz is the CEO of Igloo Inc. and the owner behind Pudgy Penguins, driving over $10M in retail sales within a year without issuing new NFTs.// Under his leadership, Pudgy Penguins secured distribution through Walmart, Amazon, and Target, Netz is also backed by top investors like Founders Fund, 1kx, and Big Brain Holdings, and is expanding his ecosystem with Abstract, a new L2 blockchain focused on consumer adoption. Prior to Pudgy Penguins, he built multiple seven-figure e-commerce ventures and developed a strong track record as an early-stage investor across Web3 and consumer tech. # In Their Words ![Luca Netz](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/4f66b58a-656c-4b1c-a468-a599e2a03a42) > “Stop feeling sorry for myself." "Once I made that mindset shift at 15, everything changed. I realized I was old enough to make something happen." Luca Netz emphasizes. The Los Angeles sun streams through the window as Luca Netz settles into his chair, a quiet confidence in his demeanor that belies his age. **At just 25, he's already transformed Pudgy Penguins from a struggling project into the second-largest NFT collection globally, with over 1.5M toys sold through major retailers like Walmart and Target in just 12 months.** But before diving into his current success, Netz takes me back to where his entrepreneurial journey began. ![Young Netz ©Courtesy of Luca Netz](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/cc48ed96-ce1a-4f36-ab85-b1d75231aad4) "Growing up, my mom, brother and I were homeless for 10 years," he shares, his voice steady but reflective. "We bounced between 14 different places across Europe, America, and even parts of South Africa." ![©Pudgy Penguins](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/d58f42d1-7d41-46a8-b2fe-2a3f2092f9f8) Despite the instability, this early adversity shaped his business acumen in unexpected ways. By age 18, Netz had launched his first company, achieving millionaire status within six months through innovative e-commerce strategies. Now, as CEO of Igloo Inc., he's pioneering new frontiers in consumer crypto adoption while building what he envisions as "the Mickey Mouse of Web3." ## Web 3 Is Not Web 3 > “A Web3 business is not predicated on the technology. It's the cadence in which you build it." One of Netz's most pointed pieces of advice challenges the current crypto startup paradigm. **"Just because you're selling products on the blockchain, whether tokens or NFTs, doesn't mean you're building a Web3 business."** ![People thinking cryptocurrency and Web 3.0 as a temporary bubble ©Google](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/2016d562-b420-44d3-a443-f54b6a5fd443) "The elephant in the room is that so many projects depend on issuing more NFTs and taking more money from their community," Netz explains. "But that's not building a real business - **it's just creating a bubble.**" When Netz acquired Pudgy Penguins in 2022 for $2.5M, the NFT industry was following a clear formula: create artificial scarcity, hype up drops, and keep issuing new NFTs to drive revenue. **It was essentially a digital pyramid scheme dressed up in Web3 clothing.** ![Pudgy Penguins in Amazon ©Amazon](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/dd7a269c-3559-45b8-977a-6e0362a4030d) So he did the opposite. Netz focused on building sustainable revenue streams through physical products and licensing. "We haven't issued any new NFTs since our inception," he notes. "Instead, we've built a real business that's not dependent on asking our community for more money. **The superpower here is how you leverage this group of people to build something bigger than what you could have built on your own, and in a faster timeframe."** This isn't just theory – Pudgy Penguins has demonstrated it in practice. The project has pioneered a new model where NFT holders can license their characters for physical products, earning royalties from retail sales. This has created a network of over 30,000 brand champions actively promoting and expanding the ecosystem. "If your penguin gets turned into a toy sold at Walmart, you get paid." > “Why would anyone want to just be a Disney consumer when they could be a participant in our ecosystem?" The traditional brand playbook calls for treating consumers as passive buyers. But Netz saw an opportunity to transform them into active participants and champions. ![](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/300e147d-b504-46d8-a1d2-84190f7c4c04) "We have 30,000 highly motivated champions pushing the brand forward in incredible ways," he says. "Some throw community events, others create amazing products.” One of “champions”, OCap Games, even started building a Pudgy Penguin trading card game that will compete with Magic The Gathering and Hearthstone. > “You can accelerate the brand-building process that might take 10 years traditionally into 3 years. By leveraging the Web3 incentive model." While many NFT projects have seen dramatic price fluctuations, Pudgy Penguins has maintained steady growth. The project has generated over $15M in toy sales within 12 months, with products available in over 10K retailers globally. ## Meet Consumers Where They Are ![©Pudgy Penguins](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/45bc2b6a-3761-4d21-8f5f-b426bb9cbcd6) While other NFT projects chased crypto natives with exclusive parties and artificial scarcity, Netz targeted mainstream consumers through an ingenious "Trojan horse" strategy. **A key insight from Netz's success is the importance of making complex technology accessible.** > “Too many people in crypto try to force things down people's throats instead of meeting consumers where they are." Rather than expecting consumers to navigate the intricacies of blockchain technology, Pudgy Penguins created simple entry points through familiar channels. Each Pudgy Penguins toy includes a QR code linking to a digital birth certificate. When scanned, it creates a custodial crypto wallet and allows users to claim NFTs through a gasless experience – all from a $5 toy purchase. This strategy has helped onboard hundreds of thousands of new users to Web3, many of whom might never have engaged with crypto otherwise. "Most blockchains are built by engineers for engineers," he explains. "But for crypto to break through to mainstream adoption, we need infrastructure optimized for regular consumers. The technology is largely commoditized now - it's about who can build the best brand and user experience." "We're not waiting for them to come to us," Netz emphasizes. > “We are coming to them." ## Think Beyond Initial Success Despite Pudgy Penguins' achievements, Netz maintains a grounded perspective that's rare in the often-hyped crypto space. "My valuation would be a lot higher if I was a little more arrogant and sold people more of a non-realistic dream," he admits. "But what's really important to me is the weight of my words." ![image alt](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/9a693158-601c-4d05-bec8-26c234c1e4a8) This long-term thinking has led to the development of Abstract, a new L2 blockchain focused specifically on consumer applications. "Consumer crypto is the final frontier," Netz argues. "If we don't break through to the consumer quickly in the next couple of years, there's going to be a ceiling set on crypto." He sees two possible paths for the industry: remaining primarily focused on digital gold and programmable money, with a potential ceiling of $10-15 trillion, or evolving into the foundation for new internet-based economies, with potential value reaching $90-120 trillion. The key to achieving the latter, he believes, is creating breakthrough consumer use cases. > “Otherwise, crypto will remain trapped in its current perception as a casino for speculators." ## Appeal Universally "Whether you're a man or woman, white or Asian, an engineer or teacher, everyone can resonate and identify with what a Pudgy Penguins is." His investment in Pudgy Penguins was driven by this principle. When evaluating opportunities, Netz looks for ideas with broad market potential. ![©Pudgy Penguins](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/539b78c6-8085-4395-b799-08debbce65c6) This focus on universal appeal has helped the brand achieve remarkable engagement metrics, including 50-60M daily views across social channels and billions of GIF impressions monthly. It's a reminder that while niche products can succeed, the biggest opportunities often lie in creating something that resonates across demographics. "We're here to prove that crypto is more than just a safe haven for casino degenerates," he states firmly. "It's about empowering basic human rights and translating physical ownership into the digital world." ## Don't Wait for Perfect Conditions to Start ![](https://eo-mag-backend.s3.us-west-1.amazonaws.com/article/8/7067e3d8-84cd-45d4-997d-cd609e5dec44) "At 15, I was asking the universe 'why do I live the way that I'm living? I never really felt safe or secure," he recalls. "But in hindsight, I wouldn't have grown up any other way. That adversity builds character. I see people who grew up in amazing lives, and I don't think they could have achieved what I achieved if I lived that same way." When Netz dropped out of high school at 16, he didn't have a safety net or formal business education. Instead of letting these limitations hold him back, he created his own curriculum through YouTube videos of entrepreneurship lectures from top universities. "The moment I stopped feeling sorry for myself and took responsibility for my future, everything changed," he emphasizes. > “In business and in life, you can either be the victim or be the victor – that choice is yours to make." Success often comes not from waiting for perfect conditions, but from taking action with whatever resources are available. For entrepreneurs looking to navigate the evolving landscape of Web3 and beyond, Netz's story offers both inspiration and practical guidance on turning crisis into opportunity while building sustainable, community-driven businesses. > “I'm in the business of winning, breaking barriers, and doing things that have never been done before." "But those things take time, they take hard work, and you can't just do things. Do them right." # What To Carry ### 1. Build a business that survives without hype Instead of depending on constant product drops or artificial scarcity, Netz built steady revenue through real products and licensing. *“We haven’t issued any new NFTs since our inception. Instead, we’ve built a real business that’s not dependent on asking our community for more money.”* A brand that survives hype cycles must have real demand, not just manufactured scarcity. Build something that would still thrive if the headlines disappear. --- ### 2. Make new ideas feel familiar Rather than teaching consumers new behaviors, Pudgy Penguins wove innovation into channels they already trust and use. *“Most blockchains are built by engineers for engineers. For real adoption, we need infrastructure optimized for regular consumers.”* Success comes from meeting users where they are, not asking them to change first. The best products lower the barrier between curiosity and action. --- ### 3. Create for everyone not just for early adopters Netz deliberately designed Pudgy Penguins to resonate across ages, cultures, and professions, not just among crypto enthusiasts. *“Whether you’re a man or woman, white or Asian, an engineer or teacher, everyone can resonate and identify with what a pudgy penguin is.”* If your brand or product only appeals to insiders, you’ll plateau fast. Lasting impact comes from building something that feels universal from day one.

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