Solana NFT Marketplace “Magic Eden” Plans To Raise $27 Million From Sequoia Capital

NFT market Magic Eden is planning to announce a $27 million fundraising spherical on Monday, involving Sequoia Capital and different buyers. Magic Eden makes use of the Solana blockchain to authenticate NFTs on its market. Solana, additionally known as “Ethereum killer,” is able to facilitating extra transactions per second than Ethereum and at a less expensive price, in response to analysis by Etherscan.

Sequoia Capital sees a weak spot in Opensea’s NFT dominance, because it depends on the much less environment friendly Ethereum blockchain. Therefore, the corporate chooses to put money into the smaller participant constructed round what it sees as a greater blockchain for NFTs.

Sequoia Capital To Make investments In Solana-Primarily based NFT Market Magic Eden

Individuals take into account shopping for or promoting NFTs most steadily from bigger marketplaces like OpenSea, which has 43% of the market share, with $23.3 billion in whole gross sales, in response to an evaluation of knowledge from the analysis agency DappRadar.

Nevertheless, Shaun Maguire, a companion at Sequoia Capital, says OpenSea is much less environment friendly resulting from its reliance on the Ethereum blockchain. Alternatively, Magic Eden, a Solana blockchain-based NFT market, might beat OpenSea by being the primary to introduce Solana NFTs.

“The guess was that they’d transfer quick and that they’d seize that benefit earlier than OpenSea would have the ability to go into Solana,” he mentioned.

The buyers within the fundraising, aside from Sequoia Capital, might embrace crypto enterprise capital agency Paradigm, Greylock, Solana Ventures.

Zhuoxun Yin, a former Coinbase product supervisor, co-founded Magic Eden final yr in the course of the NFT growth. Over the previous month, buying and selling volumes on OpenSea have lowered in half. Nonetheless, NFT gross sales reached $2.9 billion in February, in response to NFT information supplier CryptoSlam, and buyers anticipate curiosity to carry up in the long run.

Magic Eden Continues Progress

Investor Marc Andreessen and Reddit Inc. co-founder Alexis Ohanian backed a $30 million fund final week solely devoted to purchasing NFT art work.

Tim Beiko, a core contributor to Ethereum, mentioned that blockchain has a robust neighborhood of creators and followers experimenting with NFTs, with essentially the most progressive NFT initiatives selecting Ethereum.

The Bloomberg report mentioned, Magic Eden has 55 workers dispersed around the globe and can open its first workplace subsequent month in San Francisco. It additionally created a decentralized autonomous group known as MagicDAO that anybody can be a part of. Members can vote on issues like which NFT collections are featured on the homepage.

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