Hot Topic and Toonstar partner to bring NFTs into stores

Teenagers who search the mall – if anyone still does – will soon be able to pick up an NFT under the dim lights of Hot Topic.

Toonstar, a Los Angeles-based Web3 animation studio, joins Hot Topic, Inc. as the retail company’s official Web3 partner, the companies announced Wednesday. By creating NFTs related to Toonstar’s original projects and Hot Topic IP, Toonstar will facilitate NFT sales which can then be redeemed as physical goods in stores. The partnership will also include community-driven digital projects and will work with brands featured in Hot Topic to create new Web3 activations.

“We thought (the partnership) suited Toonstart and Web3 very well,” Toonstar CEO and co-founder John Attanasio told dot.LA. “When you look at their community … they are all heavy collectors of both digital and physical goods already. When you think of the NFT world, a lot of it is about collectibles.”

Hot Topic’s demographic teens and young adults also attracted Toonstar to the company, as Attanasio said it matches their current projects, such as Mila Kunis’ NFT show “The Gimmicks”, a workplace comedy series set in a world of regional wrestling. Attanasio said that Hot Topic shoppers are often the type to show up at fan events like the San Diego Comic-Con – this is where the partnership will officially launch later this month. Brand ambassadors for social media HT Fanatics will be able to participate in an episode of “The Gimmicks” during the event.

Creators have previously approached NFTs to encourage their community among their fan bases – a theory Toonstar follows with this partnership.

The collaboration marks a shift in the previous trend of incorporating NFTs into retail brands. Clothing companies including American Eagle and Gap have launched a digital clothing store and an NFT collection, respectively. Even advanced brands have explored Web3, with Gucci releasing a series of digital and physical collectibles earlier this year and Prada offering a free NFT to purchase from the Timecapsule initiative. But the Toonstar and Hot Topic partnerships allow people to purchase NFT activation codes in stores and online, effectively combining their retail experience with their digital sites.

As more retailers turn to digital creations, it is still up for debate how states will handle sales tax. And as more questions about intellectual property ownership arise in the midst of the crypto winter, retailers will have to navigate the changing digital landscape at the height of inflation.

Working with a store gives Web3 companies like Toonstar the opportunity to “make it as easy to buy an NFT as to buy a shirt in the store,” Attanasio said. Such collaborations, especially focused on the entertainment field, can also help Web3 reach a wider audience.

“Web3 and NFT are still very much a niche category, with only a few million people really active in the community,” he said. “Our thesis is that entertainment is going to be one of the things that brings NFTs and Web3 mainstream.”