Venture capitalists pour millions of dollars into burgeoning NFT startups. The non-exchangeable token has grown in popularity this year along with the soaring values of cryptocurrencies such as Bitcoin and Ethereum.
NFT is a type of Digital assets designed to track ownership of a unique virtual item – such as a piece of art or sports cards – using blockchain technology.
Last year, the total value of NFT’s transactions quadrupled to $ 250 million, while last month’s total NFT sales volume alone exceeded $ 220 million.
Investors have poured $ 90 million so far in 2021 into NFT startups and digital acquisitions, and that number is close to three times the $ 35 million raised by NFT startups last year.
It was the biggest deal Sorare, A blockchain-based fictional soccer game that raised nearly $ 50 million in February from venture capital firms.
The second largest investment this year was in OpenSea, Which is NFT Market, which acquired $ 23 million.
Emerging NFTs could attract millions of dollars more venture capital firms.
It is reported that the blockchain company Dapper Labs It seeks to attract $ 250 million in cash for a market value of $ 2 billion.
The company secured a significant boost in demand via the digital acquisitions platform NBA Top Shot created in partnership with the NBA.
It is easy to see why some novice investors are lured by emerging NFT companies, as the market is rapidly growing, with some digital acquisitions selling for millions of dollars.
This happened alongside a spike in cryptocurrencies, such as Ethereum, which is often used in NFT trading.
And last week, Twitter CEO Jack Dorsey sold his first tweet for more than $ 2.9 million on Valuables, a platform run by the blockchain company Cent.
Meanwhile, Christie’s auctioned a virtual work by artist Beeple that eventually sold for $ 69 million.