Non-fungible token (NFT) marketplace Rarible raised $14.2 million in funding from Venrock Capital, CoinFund, and 01 Advisors. The platform, which launched in early 2020, revealed that it processed more than $150 million in transactions in the last 12 months. As with most marketplaces, to date, Rarible has focused on the Ethereum blockchain but will support Flow going forward.
Despite the attention and popularity that NFTs have gained in the last six months, it is still a very complex and expensive market to participate in. While Ethreum was booming, the resultant high transaction (gas) costs meant the minimum cost of minting an NFT was around $70. For many middle and low income individuals, the break-even price alone is simply not affordable. In addition, complex crypto wallets, unsustainable practices, and upfront fees scare more people away from participating in the industry and inhibit its expansion.
Rarible believes there is a potential to make the technology mainstream. NFTs are already moving in this direction with celebrities, sports, teams, and brands fueling the trend. momentum
To achieve this, Rarible has partnered with Flow to support its primary and secondary markets. Flow is the blockchain developed by Dapper Labs and used in its NBA Top Shot offering. It has fewer barriers to entry for consumers and brands than Ethereum, where most NFT marketplaces operate.
In addition, Rarible has plans to launch the Rarible NFT protocol, an Ethereum layer two solution that makes it more scalable, cuts the cost of gas fees and is more sustainable. In the coming months, Rarible will also enable credit card payments and announce new partnerships.
One of these collaborations is well underway with one-click NFT creator S!ING. The innovative platform enables digital creators to mint and put their NFTs on sale at zero cost.
Meanwhile, public blockchain Klaytn launched an NFT minting service, which in turn is supported by NFT marketplace OpenSea. NFT infrastructure provider Bitski raised $19 million in a Series A funding, and Fox Entertainment is investing $100 million in a creator fund for NFTs.