Breaking Down OpenSea’s $23 Million Raise in NFT Boom

As one of the first NFT-centered open marketplaces on the web, OpenSea has enjoyed a surge in popularity as collectors and speculators alike latch onto the red-hot trading of non-fungible tokens. From a startup that launched nearly 4 years ago at the advent of early-NFTs (i.e. Ethereum-based CryptoKitties), the company has now grown to sell digital assets ranging from digital art, gaming items to even domains. 

Creators, musicians, artists, influencers, and gamers are diving headfirst into NFTs. Hundreds of thousands of new users are discovering, collecting, curating, and trading NFTs on open marketplaces.”

Today, OpenSea announced that the platform had secured $23 million in Series A funding led by venture capital firm a16z with further backing from investors including Mark Cuban, Dylan Field, Lina Xie and Naval Ravikant. In the announcement, CEO Devin Finzer claimed that “transaction volume on the OpenSea NFT marketplace has grown over 100x” in the past six months. The Series A funding will likely allow the startup to expand its services to accommodate an explosive growth in user demand. 

Is NFT a Fad or Here to Stay? 

Throughout 2021, NFTs have certainly enjoyed their fair share of the limelight, as prestigious auction houses facilitated million-dollar digital artwork sales and Elon Musk tweeted out NFT memes. Just last week alone, an NFT of Beeple’s Everydays – The First 5,000 Days sold at Christie’s for $69.3 million dollars. 

This enthusiasm was largely accompanied by major cryptocurrencies like Bitcoin and Ethereum rallying to record-highs, creating new crypto millionaires with money to spend.

Whether the NFT craze can continue its spree remains to be seen. As the investing hype inevitably cools down, the market for these non-fungible tokens may largely depend on further adoption from entertainment and gaming giants. 

Many skeptics have also questioned whether the exorbitant prices of some NFTs are justified. If organic demand dries up, marketplaces like OpenSea may be left questioning the importance of building a user base of collectors over one of speculators and scalpers. 

Featured image from UnSplash

Source link

Latest articles

Major UK bank NatWest won’t serve businesses dealing in crypto

National Westminster Bank (NatWest), a major retail and commercial bank in the U.K., will stop serving any businesses that accept or...

BSC mania: Binance & Mr. Beast invest in NFT marketplace Refinable

Refinable is the first NFT marketplace on Binance Smart Chain (BSC), which has recently started to close the gap on Ethereum...

Data shows institutional demand for Ethereum surged despite the recent crash

Data shows institutional demand for Ethereum surged despite the recent crash | CryptoSlate Earn up to 12% APY on Bitcoin, Ethereum, USD,...

Legendary investor who bought Bitcoin at $350 says this rally is just beginning

American investor Bill Miller says Bitcoin’s (BTC) fabled bull run is only getting started despite the asset’s nearly 700% price increase...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here