NFTfi, a South African NFT collateral startup, has raised $5 million in seed funding to improve innovating NFT financialization.
Sound Ventures, Maven 11, Scalar Capital, and Kleiner Perkins were among the investors in the round, which was led by early-stage crypto company 1kx.
NFTfi is a marketplace where users can acquire a cryptocurrency loan on their NFTs and give loans to borrowers against their NFTs. It was founded by Stephen Young in 2020. In other words, on the decentralized and peer-to-peer system, users can use their NFTs as collateral to borrow money from other users.
“Our major goal is to do for NFTs what DeFi achieved for bitcoins. When DeFi was introduced to cryptocurrencies, the market experienced an explosion of activity and liquidity. Young said
“We really want to act as a catalyst for the NFT market, releasing some of the value in these NF T’s so that it can be poured back into the NFT community and market to help develop the field further,” Young added.
NFTfi intends to use the new funding to expand its workforce, introduce new product features, expand the network to other blockchains, expand its network, and support its decentralization.
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