DeSo-backed PurpleTrader set to start social token exchange at end of month

PurpleTrader, a U.S.-based crypto exchange for so-called social tokens, plans to begin operation in the coming weeks.

The DeSo-backed exchange estimates the market potential is about $2.3 billion for such tokens and is trying to persuade issuers to list on their venue by pitching new sources of investors and trading liquidity.

Cult DAO, a venture capital platform; MoonDAO, a project to colonize the moon, and ApeCoin, a token linked to the Bored Apes non-fungible token community, are among those signed up so far, said Alex Jenn, founding partner at PurpleTrader. Other co-founders include Andre Costa, a former head of start-up ecosystems at Amazon, and Aleksey Covacevice.

''This is the future of the web3 ecosystem for brands, fans and content creators to interact with their communities,” Jenn said. ‘'We want to be the place for social token trading.’’

Social tokens tend to offer holders access to exclusive content and are increasingly used by consumer-facing firms, including sports clubs and retail businesses, to drive brand loyalty. 

Jenn said he hopes to launch the exchange by the end of this month or early March. Larger issuers will initially be able to list for free on the exchange, with fees coming in later, he said.

PurpleTrader raised about $1 million in a seed round last year with backers including Layer 1 blockchain DeSo, German football international Mario Götze, Centrifuge co-founder Markus Ament and Coinbase former legal director Eric Weingarten.