OpenSea is the largest NFT marketplace in the world, and their valuation has topped $13 billion following their latest Series C funding round. The company announced a capital raise of $300 million, which values OpenSea at $13.3 billion. That's a lot of bored apes!
Here's a snippet of the OpenSea blog post announcing the latest round of funding:
Investment will help improve customer and community experience
In 2021, we saw the world awaken to the idea that NFTs represent the basic building blocks for brand new peer-to-peer economies. They give users greater freedom and ownership over digital goods, and allow developers to build powerful, interoperable applications that provide real economic value and utility to users. OpenSea’s vision is to become the core destination for these new open digital economies to thrive, building the world’s friendliest and most trusted NFT marketplace with the best selection.
To accelerate this vision, we have raised $300 million in Series C funding at a $13.3 billion post money valuation. Paradigm and Coatue led the round with participation from new and existing investors. We are excited to work with these incredible partners, thinkers and builders who collectively bring a depth of experience in Web3, NFTs, and best in class consumer experiences.
We have four goals for this funding: 1) accelerate product development, 2) significantly improve customer support and customer safety, 3) meaningfully invest in the wider NFT and Web3 community, and 4) grow our team.
Just last weekend, Square Enix's president announced the company will enter the NFT space. GameStop has also been rumored to be working on an NFT marketplace as well with creator sign-up forms going live last month.
It's pretty apparent that NFTs are the new hotness for venture capitalists and stock market junkies. The $300 million in funds raised by OpenSea includes new and existing investors, and this market doesn't seem to be batting an eye at the valuation. With companies like Apple trading at a $3 trillion valuation earlier this week, it seems pretty tough to really ascertain what something is worth in 2022.
Surely this unrepentant risk-taking from crypto investors will end well. Some NFT doubters question the utility of non-fungible tokens, but it isn't like these pixelated ape images are as bad as investing in tulips. Right?
Yes, there are some folks out there who even think the NFT markets are largely used for money laundering activities, and with a $500 million CryptoPunk NFT transaction executed by a single individual just last year, it seems like this is a market set to derail at any moment. There is another cohort who firmly believes that Web3 is the future and NFTs are going to transform gaming and collecting forever.
Which side of the NFT debate are you on? Let us know in the Shacknews Chatty comments thread below. We really want to hear your opinion.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.