Luxury goods blockchain-based marketplace 4K announced a $3 million round of funding led by Electric Capital, Crosscut Ventures, Colab+Currency, ConsenSys and IDEO CoLab Ventures. The platform looks to combine physical items with non-fungible token (NFT) technology to create an eBay-like marketplace for luxury items.
Marketplaces such as eBay pose several issues for people looking to buy and sell high value items. Buyers can’t tell whether an item is in good condition or authentic from the pictures, and the website is not liable for false advertisement. Some platforms are tackling this issue by putting a layer of authenticators after the product is sold and before it reaches the buyer. However, this process takes time and adds significant cost.
4K’s solution is going one step further in addressing these concerns. The website will only market items that have been previously authenticated. Customers send their assets to a storage facility where it’s insured and authenticators determine its value. Owners receive an NFT representing the item’s value, authenticity, and ownership that can be used as collateral to take out a decentralized finance loan or sell. If owners decide to save the NFT, they can return it in exchange for the physical item.
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