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NFT startups Dapper Labs and Sorare raise over $ 900 million

LeBron James # 23 of the Los Angeles Lakers will face the Phoenix Suns to the basket during the 2021 NBA Playoffs on June 3, 2021.

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Two startups in the bright red NFT market have raised a total of $ 930 million this week. This highlights investors’ continued desire for crypto companies as the industry grows so much.

Dapper Labs, a manufacturer of virtual basketball trading cards, said Wednesday that it had raised $ 250 million in a Coatue-led funding round. Bond, an investment company run by former Wall Street analyst Mary Meeker, and Singapore’s sovereign wealth fund GIC also helped the round.

The new round is valued at $ 7.6 billion for a Vancouver-based company in Canada, according to people familiar with the matter who preferred to remain anonymous because the information was not disclosed.

Sorare, a French fantasy soccer game that incorporates NFTs, will also be on Tuesday. Softbank..Venture capital companies Atomico, Bessemer Ventures, and IVP have also invested with investment company D1 Capital. Eurazeo..

French soccer star Antoine Griezmann and former British player Rio Ferdinand are also investors in Solare.

The investment brings Solare to a valuation of $ 4.3 billion, making it France’s most valuable private technology company and one of Europe’s largest start-ups, the company said.

What is an NFT?

NFT, or Non-substitutable tokenIs a new but fast-growing phenomenon in the crypto industry. These are digital tokens that represent ownership of virtual items such as works of art. Ownership is tracked on the blockchain, the digital ledger of transactions.

Unlike Bitcoin and other cryptocurrencies, NFTs are not replaceable. This means that they cannot be exchanged with each other like dollars and gold. Each NFT is unique and acts as a non-duplicate collector’s item, but the underlying media remains visible to someone else on the Internet.

“When we think of real-world collections, most of them aren’t of practical value,” explained Sorare CEO and co-founder Nicolas Julia. “You put them on an album, and it’s great, but it’s a kind of limitation.”

“There are many other things you can do when converting to NFTs in the digital world, for example in games, but there are also demonstrable rarities that are very attractive to collectors.”

NFT prices soared earlier this year, with sales reaching a record $ 2.5 billion in the first half of 2021. Record $ 69 Million Artwork Sold by digital artist Beeple at Christie’s auction First-ever Tweet Sales of $ 2.9 Million According to Twitter CEO Jack Dorsey.

The enormous amount of money flowing into companies like Dapper Labs and Sorare highlights how investors are chasing the next big thing in cryptocurrencies.

Cryptocurrency and blockchain startups have received about $ 19 billion in venture funding so far this year, with $ 6.4 billion raised by the sector in 2020, according to figures shared by data firm Pitchbook with CNBC. It’s almost tripled.

However, like other assets in the emerging crypto industry, NFTs have proven vulnerable to exploitation by malicious individuals.Last week, the digital collection marketplace OpenSea revealed: Insider trading was happening on that platform..

NFT enters the world of sports

Some sports organizations are looking at NFTs and other crypto assets as a way to generate additional revenue.

For example, the English Premier League Manchester City has announced two NFT collections. During that time, many soccer clubs have been launched.Fan token“This allows owners to vote primarily for minor club decisions and receive certain perks.

Dapper Labs’ NBA Top Shot Platform allows users to exchange and collect basketball match highlights in the form of NFTs. The highlights, or “moments,” are licensed by the NBA, which receives royalties on each transaction.

Dapper Labs has also developed a unique blockchain designed for NFTs called Flow.I used to use Ethereum, but in 2017 the popular digital pet game CryptoKitties Slow transaction processing.. We are currently migrating CryptoKitties to Flow.

In addition to announcing the latest funding on Wednesday, Dapper Labs announced a partnership with Spain’s top football league, LaLiga, to share a similar experience with the NBA Top Shots for football fans. Dapper Labs says it plans to invest some of its fresh cash in new experiences, such as paid trips to large-scale games.

“Part of this money will go to extend the capabilities of the NBA Topshot, develop mobile products, connect the digital collection experience with the fan experience in live games, and even support the team on social media.” Said Roham. Gharegozlou, CEO of Dapper Labs, told CNBC.

One week after LaLiga announced Individual partnership with Solare Add a digital player card from the league.

Sorare is also strengthening its rivalry with Dapper Labs and plans to set up a new office on the ground and expand into the United States. Solare has been approached by many US sports organizations, its CEO told CNBC.

Sorare will also launch a mobile app to register in all of the top 20 football leagues by the end of 2022. Both Dapper Labs and Sorare have shown that they want to leverage the vast social media followers of sports stars to disseminate information. Their platform.

NFT startups Dapper Labs and Sorare raise over $ 900 million

Source link NFT startups Dapper Labs and Sorare raise over $ 900 million

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