If someone had uttered the letters NFT back in 2020, not surprisingly, many of us would have remained indifferent. But little did we know that in 2021, NFTs would become the hottest tech topic, a multi-billion dollar industry, a golden duck for new-age investors, and a benchmark for creators.
So much so that, on November 24, 2021, Collins Dictionary named NFT as the “word of the year.”
And in continuation of NFT’s ongoing glory and as a testimony to its unprecedented success, OpenSea, the largest NFT marketplace, raised $300 million in Series C funding, valuing the startup today at $13.3 billion.
Here’s your complete guide to Non-Fungible Tokens or NFT.
But wait, why is OpenSea’s valuation at $13 odd billion news in an era of startup boom?
Enter: NFT Explosion
Here are some numbers that will fire up your entrepreneurial juices.
OpenSea exploded from a $1.5 billion startup to a $13.3 billion company in just 6 months. According to Devin Finzer, the CEO of OpenSea, the startup witnessed an increase in transaction volume by over 600x in 2021. The platform saw over $2.4 billion in transaction volume in just the last 30 days.
The New York City-based startup is a decentralized, peer-to-peer marketplace for blockchain-based assets like crypto collectables. And Non-Fungible Tokens or NFTs are certificates that represent digital ownership of such unique collectables.
OpenSea’s wild growth has coincided with the burgeoning NFT craze in 2021.
It all started in March 2021, when Mike Winkelmann, the digital artist known as Beeple, sold an NFT of his work for $69 million. Soon the craze caught on, and celebrities from Lionel Messi to Justin Bieber have flocked the NFT bandwagon. Eminem and Paris Hilton were the most recent entrants to have dropped the NFT bomb.
On a side note, the Bored Ape Yacht Club (BAYC), a unique collection of 10,000 bored apes, generated a record 1 billion sales entering 2022.
NFT’s First Billionaires
Meanwhile, the NFT industry produced its first billionaires.
Devin Finzer and Alex Atallah, the co-founders of OpenSea, with an estimated stake of 18.5%, are the industry’s first set of billionaires valued at about $2.2 billion, per Forbes.
“Our ambition is to foster the scale and growth of the broader NFT ecosystem including raising the profile of emerging creators and investing in the people who shape the NFT space for the better today,” noted Finzer.
The fresh injection of capital will help the duo fend off some fierce competition from Brian Armstrong’s Coinbase, which is all set to launch its own NFT marketplace.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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