The “non-fungible token” hype that is raging across the country has fueled appetite for the backbone of the phenomenon.
Driving messages: Investors invest a lot of money in the infrastructure of the phenomenon – they bet it will stay here.
Catching up quickly: The staggering amounts of money spent to own a digital version of art – or newspaper covers, trading cards, memes, as you call them – verified through blockchain have been cited as a side effect of the wider market hype.
What you say: The infrastructure behind NFTs “has improved tremendously in recent years. … protocols, applications, and developers can quickly scale to meet demand,” said Matt Beck, director of investments at venture capital firm Digital Currency Group.
- “”Interest in NFTs is likely to remain even if prices cool in the face of a major financial downturn. “
The company behind the virtual trading card website NBA Top Shot said it Tuesday Raised $ 305 million – the largest financing round to date for an NFT-focused company. (Valuation: $ 2.6 billion).
- NFT marketplace SuperRare said today it raised $ 9 million.
- OpenSea, another platform for selling and buying NFTs, said last week it raised $ 23 million.
By the numbers: NFT-related startups raised $ 35 million in the past year, according to Pitchbook.
- The funding rounds listed above (by no means exhaustive) are already more than nine times as high – and it’s only March.
The bottom line: As long as NFTs are hot, so will its ecosystem.