Non-fungible token (NFT) renting platform reNFT has announced it raised a $1.5 million strategic funding round led by Animoca Brands. Eight other venture capital firms, including Scalar Capital, SkyVision Capital and MetaCartel Ventures (a DAO), also participated in the funding, alongside five angel investors.
The concept behind reNFT is to use NFT technology to support renting tangible and intangible assets ranging from intellectual property rights to claims to real estate. Despite the possibility of minting a representation of a physical asset as an NFT and using the technology to rent it out, currently one of the most common use cases is renting out in-game assets and applications of the technology in decentralized finance.
One of the developments in the NFT industry that is likely contributing to the strategic focus of reNFT is play-to-earn games. Players purchase in-game assets minted as NFTs. They use these NFTs, which may be characters, to play the game. Successful in-game action earns tokens that can be exchanged for regular money. While users can re-sell the NFTs for tokens and still make a profit, renting these out to other users supports a new stream of revenue and expands the uses of the game, especially for players looking to make a wage out of playing. That’s the plan, although it doesn’t support this quite yet.
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