OpenSea has backed non-fungible token (NFT) minting platform Fair.xyz in a $4.5 million round led by venture capital firm Eden Block.
Other investors in the round included NFX and First Minute Capital, Fair.xyz told The Block. The startup, which has partnered with the Ukrainian government to help launch its own NFTs to fund the war against Russia, was valued at $33 million after the round closed.
According to the founders Isaac Kamlish, Isaac Bentata Chocron and Nathan Cohen — all former Meta and Goldman Sachs engineers — the current process of minting NFTs is broken. They describe how a lack of developer knowledge, gas fees and transaction failures lock out the vast majority from creating their own NFTs.
"There's loads of no-code solutions out there that help but with only creating one- or two-piece collections," said Bentata Chocron in an interview. "When you launch at scale — say 10,000 – you have to deploy your own smart contract, build a website and integrate the NFT fully into it, generate your artwork and decentralize it. It's a very elaborate process that can take weeks for an experienced team."
Through Fair's solution, creators can launch NFT collections in minutes, according to the founders. Its smart queuing technology also helps to reduce gas fees and the possibility of failed transactions. The team plan to monetize by taking a 6% commission on primary sales of NFTs created through the service.
While the current NFT market is a far cry from the heady days of January 2022 when monthly trading volume reached $5.6 billion — last month it dipped under the $700 million mark — that hasn't stopped companies from developing in this field.
In June of this year, crypto payments firm MoonPay launched a similar service named HyperMint which allows brands and creators to mint up to 100 million NFTs at once. On Sunday, American luxury jewelry brand Tiffany debuted and sold out its 250-strong NFT collection in 20 minutes.
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