MEDIA DO : Launches NFT Marketplace FanTop Updating the “joy of collecting” by combining the physical and digital worlds

https://mediado.jp/english/

News Release

October 25, 2021

MEDIA DO Co., Ltd.

5F PALACESIDE Bldg. 1-1-1 Hitotsubashi Chiyoda-ku Tokyo, Japan

President and CEO Yasushi Fujita

First Section of the Tokyo Stock Exchange (3678)

MEDIA DO Launches NFT Marketplace FanTop

Updating the "joy of collecting" by combining the physical and digital worlds

MEDIA DO Co., Ltd. ("MEDIA DO") announced on October 12, 2021 that it launched its own NFT marketplace called FanTop* built using blockchain technology.

*FanTop is the official name now used for the provisionally named MEDIA DO NFT Marketplace.

• About FanTop

FanTop is an NFT marketplace where fans of various content can collect and view digital "collectibles" as well as enjoy sharing, transferring, and buying/selling these digital "collectibles" among their fandoms. FanTop seeks to update the joy of collecting, which until now had primarily taken place in the physical world, by combining the physical and digital to capitalize on the unlimited possibilities of the digital world.

Link to the FanTop website: https://fantop.jp(in Japanese only)

・Increased accessibility with payments in Japanese yen

FanTop targets new, inexperienced NFT users. It accepts payments in Japanese yen using a credit card instead of crypto currency to increase accessibility. The aim of FanTop is to build an ecosystem where anyone can enjoy NFTs of their favorite works; rather than seeking to exponentially increase the value of NFTs through speculative trading.

Direct inquiries to:

Tobari or Osaka, Corporate Communications, MEDIA DO Co., Ltd. TEL: [phone] / E-Mail:[e-mail]

https://mediado.jp/english/

・FanTop adopts Flow, the blockchain for NFTs without added costs for users

FanTop uses Flow blockchain to manage the ownership data of NFTs. This allows ownership data for all collectibles on FanTop to be recorded in the blockchain without costs incurred by the user instantly upon acquisition, creating an NFT. Ownership data is publicly available on the blockchain, making it possible to easily view the NFT collections of friends or other people with similar interests.

FanTop commenced sales of various NFT collectibles at the time of its launch. One of FanTop's most interesting features is the "NFT Digital Benefit" service where consumers who purchase certain printed publications sold at participating bookstores nationwide can receive NFTs. This service is made possible through collaboration with TOHAN CORPORATION, with which MEDIA DO entered into a capital and business alliance in March 2021.

On October 12, 2021, MEDIA DO hosted a briefing session for IP holders and media at the time of service launch. A video of the briefing session can be accessed via the following link: https://youtu.be/NyEju5c7s98.

• Features of FanTop

Gift code functionality: able to issue NFT Digital Benefit

MEDIA DO, through collaboration with TOHAN CORPORATION, with which it concluded a capital and business alliance in March 2021, will distribute NFT Digital Benefit, which can be issued on FanTop, at participating bookstores nationwide as a

bonus to consumer who purchase certain printed publications.

Consumers read the gift code on the printed publication purchased to obtain a digital collectible related to that publication for free, with ownership data instantly recorded on blockchain.

By gifting NFTs linked to physical items, this service seeks to increase the added value of printed publications, drive customer traffic to bookstores, and achieve synergistic effects between the digital and analog worlds. Through the roughly 5,000 bookstores nationwide that do business with TOHAN CORPORATION, limited edition digital collectibles can be delivered to many readers using this nationwide network of bookstores (the number available and participating bookstores vary by printed publication).

Linkage with app: viewer app slated for release at the end of 2021

MEDIA DO plans to release a viewer app at the end of 2021 featuring 3D browsing and AR/VR functions where all NFTs provided on FanTop can be displayed and viewed. In addition to being able to view huge digital figures

in 3D and AR, a number of VR collection rooms containing personal favorites can be setup inside the app.

Information exclusively for NFT owners can also be distributed within the app.

Direct inquiries to:

Tobari or Osaka, Corporate Communications, MEDIA DO Co., Ltd. TEL: [phone] / E-Mail:[e-mail]

https://mediado.jp/english/

Global distribution: sales for overseas NFTs including on MyAnimeList

MyAnimeList (MEDIA DO Group) is the world's largest community and database of Japanese anime and manga with 18 million active monthly users representing 240 countries. Using FanTop as a platform, beginning with MyAnimeList MEDIA DO will distribute digital NFT collectibles of Japanese manga and anime to international audiences.

MyAnimeList already offers sales of physical collectibles and by combining this with NFTs, MEDIA DO will be able to expand collectibles available to overseas fans.

Community-drivenNFTs: Manga Fragments turning individual panels of comics into collectiblesMEDIA DO will begin selling individual panels as digital NFT

collectibles called Manga Fragments that highlight fans' most cherished manga works. The idea was born from more than three months of discussions among passionate MyAnimeList community members around the world. The name Manga Fragments was chosen based on the desire for NFTs that remind fans about manga they've read a long time ago.

• First round of content

Lineup of printed publications with NFT Digital Benefit (first round)

Fans read the gift code attached as a bonus to a printed publication to access a virtual box with digital collectibles inside that can be enjoyed on FanTop. Fans then open their NFT Digital Benefit box on FanTop to randomly receive digital collectibles, with ownership data immediately recorded on blockchain upon acquisition. The first round of printed publications with NFT Digital Benefit include the following three.

	Title		Shukan SPA! 10/19 and	Sae Okazaki 1st Photo	Ryoha Kitagawa 1st Photo
			10/26 Special Combined	Compilation Sugao Special	Compilation Kimi no Taiyo
			Edition	Edition	NFT Special Edition
					Featuring Digital Movie and
					Previously Unreleased
					Photos
	Release date		October 12, 2021	October 14, 2021	November 2, 2021
	Cover of
	printed
	publications
	with NFT
	Digital Benefit
	and available
	virtual boxes
	Note: For details of each title, refer to the press release dated September 21, 2021 (https://mediado.jp/service/4086/)
					(in Japanese only)

Direct inquiries to:

Tobari or Osaka, Corporate Communications, MEDIA DO Co., Ltd. TEL: [phone] / E-Mail:[e-mail]

https://mediado.jp/english/

Content lineup (as of October 12)

The virtual box sold on FanTop has a different price and number of NFT collectibles based on each work. Fans who purchase one will receive collectibles randomly, with ownership data recorded on blockchain immediately upon acquisition. The first round to be released are the following five virtual boxes.

				Product name (alphabetical order) / Price			Provider
	(1)			Cheat Kusushi no Slow Life "Digital Art Board" Series / ¥550 (tax incl.)		Edia Co., Ltd.
	(2)			Fist of the North Star "Dying Like a Man" Series Nanto Rokusei Ken		Coamix Co., Ltd.
			Box / ¥4,910 (tax incl.)
	(3)			Ginga Densetsu NFT Art Series / ¥2,200 (tax incl.)				NIHONBUNGEISHA Co., Ltd.
	(4)			JAM Project Jacket Art Collection / ¥2,200 (tax incl.)				BANDAI NAMCO Arts Inc.
	(5)			Ryo Shitara Fan Club Badge / Unreleased item (distributed only to fan		Cork, Inc.
			club members)
Sample images of available content
			(1)	(2)	(3)		(4)	(5)

• About Flow blockchain used by FanTop

FanTop uses Flow blockchain to manage NFT ownership data.

The most important reason for using NFTs is the reliable protection of owner's rights. Using a decentralized and dispersed blockchain called public chain to record NFT data makes it impossible to delete NFTs that have been issued. This will also make it nearly impossible to modify ownership data, allowing owners to freely transfer or buy/sell NFTs. MEDIA DO preferred to use the public chain to ensure complete reliability when recording connections between fans and their favorite works. Furthermore, the blockchain used by FanTop must accommodate high data loads because users will be selling fan items for several hundred yen and NFT Digital Benefit will be granted at a rate of 10,000 per printed publication. MEDIA DO adopted Flow because it secures the rights of owners on the dispersed public chain and keeps transaction costs down with little environmental impact.

Flow is also adopted by NFT services operated by a number of famous overseas sports teams including the NBA. Flow already has more than two million wallets (users)1 around the world, and secondary market transactions of NFTs in 2021 on Flow amounted to more than 10 million, the most of any blockchain.

1 Source: The CoinList Blog "The State of Flow: A Year in Review" （https://blog.coinlist.co/the-state-of-flow-a-year-in-review/）

Direct inquiries to:

Tobari or Osaka, Corporate Communications, MEDIA DO Co., Ltd. TEL: [phone] / E-Mail:[e-mail]

https://mediado.jp/english/

By using Flow, which is widely adopted overseas, MEDIA DO will accelerate the worldwide expansion of anime NFTs through MyAnimeList, the world's largest anime and manga community and database website operated by its subsidiary.

Flow developer: Dapper Labs

Kelly DiGregorio, VP, Partner Management & Operations

"The arrival and launch of MEDIA DO and FanTop on Flow is the next evolution of anime fandom for the digital age. We're looking forward to seeing them delight new and existing audiences through NFT ownership, and join Flow's ecosystem of truly innovative and amazing builders and partners on a blockchain purpose-built for fan engagement. "

• Future FanTop function expansion and rollout (planned)

Looking ahead, in addition to a viewer app with 3D, AR and VR functionality, MEDIA DO plans to begin providing a secondary market where users can buy and sell NFTs amongst themselves sometime before the end of 2021. The proceeds generated from secondary market transactions will be returned also to IP holders providing the content.

FanTop does not prioritize speculative trading. FanTop's goal is an NFT marketplace where fans can easily access their favorite digital collectibles. Therefore, MEDIA DO will not encourage resales soon after service launch; instead it will launch its secondary market after a certain period of time has passed.

■ Background to FanTop's Launch

In the past, people felt a connection with their favorite content by owning physical collectibles and gained a major sense of satisfaction as fans. In the case of physical collectibles, fans were able to take pride in knowing that they were the only ones in the world to own them. Today, the ratio of time people spend in digital spaces during their daily lives continues to increase. Similarly, the digitalization of collectibles such as trading cards and figures is expected to progress further.

Given this background, MEDIA DO positions FanTop as an NFT marketplace for fans of collectibles. By using NFTs, which make it possible to authenticate owners, MEDIA DO focuses on developing a platform where many fans can trade and buy/sell actively their favorite collectibles in a digital world. MEDIA DO, which has contributed to a creative cycle of delivering digital content to countless fans including music, videos and e-books and returning profits appropriately, aims to promote the expansion of services tailored to the fans of each content and to grow the marketplace for collectibles.

Direct inquiries to:

Tobari or Osaka, Corporate Communications, MEDIA DO Co., Ltd. TEL: [phone] / E-Mail:[e-mail]