/Investors are pouring big money into the infrastructure behind NFTs – Axios

Investors are pouring big money into the infrastructure behind NFTs – Axios

The “non-fungible token” hype sweeping the country has invigorated an appetite for the backbone of the phenomenon.

Driving the news: Investors are pouring big money into the phenomenon’s infrastructure — betting it’s here to stay.

Catch up quick: The eye-popping amounts spent to own a digital version of art — or newspaper covers, trading cards, memes, you name it — verified via blockchain, have been called a side effect of the broader market frenzy.

What they’re saying: The infrastructure behind NFTs “has improved tremendously in recent years. … Protocols, applications and creators can scale fast to meet demand,” says Matt Beck, director of investment at venture capital firm Digital Currency Group.

  • The interest in NFTs is likely to persist, even if prices were to cool off amid a wider financial downturn.”

The company behind virtual trading card site NBA Top Shot said Tuesday it raised $305 million — the biggest ever funding round for an NFT-focused company. (Valuation: $2.6 billion).

  • NFT marketplace SuperRare said today it raised $9 million.
  • OpenSea, another platform to sell and buy NFTs, said last week it raised $23 million.

By the numbers: NFT-related startups raised $35 million last year, according to Pitchbook.

  • The funding rounds listed above (by no means exhaustive) are already more than 9 times that amount — and it’s only March.

The bottom line: So long as NFTs are hot, its ecosystem will be too.

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