If there was a tech investment craze that grew beyond recognition in 2021, it was NFTs. Non-Fungible Tokens are, essentially, digital artwork assets that hold immense value. As you may imagine, there are also startups working to help propel NFTs even further forward - but how?
NFTs - The Brief
NFTs, essentially, are digital assets. Some have described them as high-value, irreplaceable trading cards. However, they are crucially part of the wider blockchain technology, tied to Ethereal, a popular cryptocurrency.
NFTs are crucially speculative assets. They enable creators to make money through unique, singular works. Thus, they have an immense collectible value. However, there has been some speculation over their worth, with digital duplication likely to be rife.
However, it is easy to compare NFTs to classic works of art. For example, Da Vinci’s original Mona Lisa is a single entity, a one-off. There are prints and posters of the Mona Lisa, but they are not the original version.
NFTs of artwork, music, and animation are the ‘original works’ or ‘first editions’. As they are tied to the blockchain, they are more protected and thus impossible to overwrite.
How Are Startups Changing NFTs?
Despite concerns that NFTs have already become niche assets, there are startups working with the medium with future ambitions. Aside from actively creating NFTs outright - what are these companies doing to help transform the asset space?
Illuvium is an intriguing brand that uses NFTs in gaming. Illuvium offers players an experience to capture and claim NFTs while exploring and battling through a digital world. Their role-playing game format is already catching investor interest, too. In March 2021, their platform gained an impressive $5 million in direct funding.
Illuvium also has its blockchain token, ILV, that emerged a month after their big funding round. Their Series A success now means they are at the forefront of NFT gaming.
Alchemy, meanwhile, is also cashing in on NFTs in a big way. Based in San Francisco, the company provides a midpoint engine between the blockchain and providers. Essentially, they’ve helped build apps and stores to bring NFTs even closer to the masses. They’ve even had a hand in selling a token worth $69 million.
Alchemy’s received impressive funding all on its own, with some big-name investors backing them up. They claimed a Series B round of $80 million, with public names such as Jay-Z and Jerry Yang on board. What’s more, Coinbase and SpaceX allies DFJ Growth helped to invest, too.
Are NFTs Here to Stay?
Despite the meme status of NFTs being easy to exploit, their value and position as genuine assets are holding firm. At least, that appears to be in line with two of the most significant ventures listed above.
NFTs startups breaking into their second big year - could they go mainstream? Take a look at real-time information available via Fundz for startups dipping into the niche.
SOURCES USED
https://www.cnbc.com/2021/04/28/nft-start-up-alchemy-raises-80-million.html
https://venturebeat.com/2021/03/11/illuviam-raises-5-million-for-nft-based-fantasy-battle-game/
https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq
https://kadimadigital.com/10-hot-nft-startups-you-should-be-following-right-now/
https://www.yahoo.com/now/10-nft-startups-investors-flocking-181135081.html?guccounter=1
https://explodingtopics.com/blog/nft-startups
Topic: NFT Startups
