LimeWire has raised $10.4 million in a private token sale led by Kraken Ventures, Arrington Capital and GSR as it builds its platform for music-focused NFTs.
News of the fundraise, unveiled on Thursday, comes a little over a month after the company announced it was plotting a comeback.
LimeWire originally gained notoriety in the 2000s as a place to download music and other files outside of mainstream channels. But, aside from the name and branding, the business proposition for LimeWire is completely new.
The team behind the resurrection, which is currently based across Vienna, London and Berlin, says the platform will initially focus on music-linked NFTs. Its new iteration will allow fans and artists to create, buy and trade digital collectables without the current technical hurdles of the NFT landscape.
Music-related assets will include limited editions, pre-release songs, unreleased demos, graphical artwork, exclusive live versions, as well as digital merchandise and backstage content.
"As artists perform for live audiences again, positioning NFTs as exclusive backstage passes or access to unreleased content will become an invaluable avenue to strengthen direct engagement and loyalty with fans," said Akshi Federici, a partner at Kraken Ventures.
Public sale coming
The brand said it would use the fresh funds to grow its team, extend partnerships and onboard major music artists to the platform.
A public sale of LMWR tokens will take place later in the year. Holders will be able to participate in a token reward program, reduce their trading fees on the platform, and gain access to exclusive community perks and regular LimeWire events. Further down the line, holders will also start playing a fundamental role in deciding which up-and-coming artists are supported by LimeWire and featured on the marketplace, the company said.
Investors in the round also included Crypto.com Capital, CMCC Global; Hivemind; Hard Yaka; Red Beard Ventures; FiveT Fintech; DeepTech Ventures; SwissBorg Ventures; 720Mau5 – the fund behind Canadian music producer Deadmau5; as well as DAO Jones – a group of investors from the music industry, including electronic music artist Steve Aoki.
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