Metaplex, a nonfungible token (NFT) protocol, has raised $46 million in funding to support its strategic pivot into metaverse applications, demonstrating that current blockchain networks are trying to benefit from Web3 technology improvements.
The round was attended by a number of investors, including Solana Ventures, Alameda Research, and NBA luminaries Michael Jordan and Allen Iverson. Multicoin Capital and Jump Crypto led the financing, with participation from Solana Ventures, Alameda Research, and Animoca Brands. The financing attracted over 90 individual investors, including NBA legends Michael Jordan and Allen Iverson.
The Metaplex Foundation, which oversees the development of the Metaplex protocol, will be able to expand its support for metaverse and gaming applications this year as a result of the investment round. Metaplex has already been utilized to produce over 5.7 million digital collectibles for 85,000 projects as an NFT-first protocol, according to the business.
With the help of cryptocurrency exchange FTX, Metaplex started their NFT marketplace on Solana in June 2021. The platform was created to help the small yet booming NFT community with infrastructure. Despite its recent dip, the NFT industry is expected to expand this year, following a record-breaking year in 2021, when creators made over $17 billion in sales.
According to Cointelegraph Consulting, nonfungible tokens and metaverses have a natural connection because nonfungible tokens can offer a certificate of ownership or legitimacy to digital assets. As metaverse applications continue to attract more users and notions like digital land grow more widespread, proof of ownership will become more important.