SNEAK PEEK
- A company named NiftyApes has received $4.2 million in startup funding from Coinbase Ventures. This company allows clients to borrow money against any NFT collection.
- NiftyApes intends to strengthen the secondary loan market for NFTs to get away from the predatory lending practices that only benefit the wealthy in web2 environments.
- Adding utility and use cases becomes more important as buyers struggle to understand the worth of these coins beyond trading.
A company called NiftyApes, which enables customers to borrow money against any NFT collection, has raised $4.2 million in startup money from Coinbase Ventures. The company follows a recent trend of venture investors showing interest in debt financiers with an emphasis on NFT.
TODAY IS THE DAY.
A year ago, #NiftyApes began with questions about inequalities in lending and borrowing.
Today, our $4.2M seed round led by @variantfund and @fintech_io begins to answer those questions.https://t.co/WK5Z1v4svk
— NiftyApes (@NiftyApes) November 1, 2022
The financing was headed by Variant and FinTech Collective. Robot Ventures, Polygon, Coinbase Ventures, The LAO, FlamingoDAO, and Ryan are more participants. Sean Adams, David Hoffman, Eric Conner, Cyrus Younessi, Anthony Sassano, DC Investor, James Young, James Duncan, Nadav Hollander, and Brendan Forster are among the participants.
To move away from the predatory lending practices that only favor the wealthy in web2 environments, NiftyApes wants to strengthen the secondary debt market for NFTs. By encouraging market competition to automatically refinance an NFT loan, NiftyApes hopes to achieve this.
NFT programming layer Revise raised $3.5 million earlier this year in a funding round that was co-founded by AlphaWave Global and 8i Ventures. Sandeep Nailwal, cofounder of Polygon, Utsav Somani, partner of AngelList, and Rahul Chaudhary, co-founder of Treebo, were among the other angel investors that took part in the round. Several startup founders and top executives from Bharat Founders Fund and other companies have also contributed to the financing.
MetaStreet, a company that specializes in NFT debt finance, has also recently received funding. On October 13, it raised $10 million with the aid of OpenSea and Dragonfly Capital.
The bear market has caused a decline in NFT floor pricing, but so-called blue-chip NFTs, or well-known NFT projects, continue to be extremely valuable, making them desirable assets to utilize as collateral in the debt economy.
As buyers fail to comprehend the value of these coins beyond trading, adding utility and use cases becomes more crucial. According to an ET report from January 30, NFT startups and markets in India are creating an NFT economy that uses NFTs to solve for digital flexing and unleash value in both physical and digital worlds.
