Haun making huge profits
The NFT market grew during the COVID-19 pandemic, and the trading of NFTs in 2021 increased to more than $17 billion, up by 21,000% over 2020’s total of $82 million. The NFT ecosystem is still functioning, but most of the volume is moving through the central hall of the NFT marketplace, OpenSea, and crypto VCs are keen to find new channels. Katie Haun’s new company, Haun Ventures, led the first deal with NFT startup Zora Labs. The $ 50 million funding round will value the company at $ 600 million. The Zora protocol allows artists and developers to create NFT marketplaces and collections. Zora, like OpenSea, has its own major marketplace for users to list NFTs, but most of the NFTs sold through that protocol are on third-party sites. Cryptographic organizations such as Startup Mirror and Public FWB use Zora’s protocol to sell NFTs to community members. In addition to Haun Ventures, the group’s supporters are Coinbase Ventures and Kindred Ventures. Haun oversaw OpenSea Series B, especially at a16z, and won a seat on the board.
What is an NFT?
A nonfungible token (NFT) is a noninterchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio. Because each token is uniquely identifiable, NFTs differ from most cryptocurrencies, such as Bitcoin, which are fungible. NFT ledgers claim to provide a public certificate of authenticity or proof of ownership, but the legal rights conveyed by an NFT can be uncertain. NFTs do not restrict the sharing or copying of the underlying digital files, do not necessarily convey the copyright of the digital files, and do not prevent the creation of NFTs with identical associated files. NFTs have been used as a speculative asset, and they have drawn increasing criticism for the energy cost and carbon footprint associated with validating blockchain transactions as well as their frequent use in art scams. The NFT market has also been compared to a Ponzi scheme.