Hype about non-fungible tokens: “The world’s first and largest digital marketplace”: This is the NFT pioneer OpenSea | news

• Open marketplace for setting up and trading NFTs
• Still relatively inconspicuous at the beginning of the corona pandemic
• OpenSea now has a dominant market share

In December 2017, Devin Finzer, now CEO, and Alex Atallah, now CTO, OpenSea in New York, built an open marketplace to create and trade all types of NFTs – be it art, music or games. OpenSea thus provides a platform where users can create, buy and sell all types of non-fungible tokens (NFTs). “The world’s first and largest digital marketplace for crypto collectibles and non-fungible tokens (NFTs). Buy, sell and discover exclusive digital items,” the OpenSea website states. NFTs are tracked on Ethereum or other blockchains, and all purchases are made in crypto.

OpenSea benefits from NFT hype

In March 2020, as the COVID-19 pandemic took its toll, Atallah Finzer told over the phone that the NFT market felt “dead,” according to Forbes. At the time, the platform had only 4,000 active users and saw $ 1.1 million in transactions per month, which in turn was just $ 28,000 in revenue.

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But in February 2021, the NFT business picked up speed. As of July, OpenSea was already able to record $ 350 million in transactions. That same month, the company also raised $ 100 million in venture capital for a $ 1.5 billion valuation in a round led by Andreessen Horowitz. “OpenSea is the interface between the consumer and infrastructure layers of the digital goods economy and is a critical enabler in this new world of digital ownership,” Horowitz wrote in the investment announcement.

The hype surrounding NFTs just got bigger. In August, transaction volume rose to an impressive $ 3.4 billion, according to Forbes. While transactions have since dropped to around $ 2 billion a month, the platform now has around 1.8 million active users and a dominant market share. While OpenSea was still five people in March 2020, the company from New York now has 70 employees – and more are wanted.

“In the right place at the right time”

According to Finzer, OpenSea is now so successful because, among other things, it was “in the right place at the right time” and responds to users’ wishes, Forbes reflects the founder’s assessment. “As a company, we are excited to be at the heart of this growing industry and will continue to invest in our core infrastructure to build the most accessible marketplace for buyers, sellers and creators,” the company’s website states.

The competition is growing

Nevertheless, the competition is fierce and constantly growing. In addition, OpenSea’s open market approach is not entirely without risk to business, as according to Forbes it increases the risk of counterfeiting, fraud and rip-off. For example, a scammer might copy an artist’s image and sell it on OpenSea as an NFT. However, according to Finzer, the company is already working on an automatic method to detect counterfeits. There are also employees investigating suspicious offers.

Nevertheless, OpenSea founders are still ambitious and optimistic: “We have a big pillow if we are to survive a winter,” quotes Forbes Finzer.

Editing finanzen.net

Image sources: Sergei Elagin / Shutterstock.com, phloxii / Shutterstock.com

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