The popular blockchain investment company Hashed has taken part in the seed round of Contxts – the operator of the NFT portfolio manager NFTBank.
$1.4 Million Investment in NFTBank
NFTBank is a platform that provides asset management services of NFT assets from various projects such as League of Kingdoms, Axie Infinity, The Sandbox, and so forth. It supports all of the non-fungible tokens built on Ethereum’s network, as well as on Polygon (formerly known as Matic). The platform allows users to view all of the NFTs in a single place.
Most recently, it received a sizeable investment from well-known industry firms such as Hashed, 1KX, and Digital Currency Group, amounting to $1.4 million, according to a press release shared with CryptoPotato.
Speaking on the matter was Ethan Kim, co-founder of Hashed, who justified the investment in the platform:
NFTs are a great example of using blockchain to assert unique digital asset ownership… […] Indeed, the disruptive power of NFTs will allow digital artworks and collectibles to become more than a mere part of a collection. The meeting of NFTs and the metaverse will create greater added value. I expect NFTBank’s strong data analytics to serve as a good indicator for crypto natives to calcluate appropriate pricing of NFTs.”
The Valuation Challenge
Putting a price on art is a very challenging task, as it’s purely subjective, and it can vary from one investor to another. A piece of art worth millions to someone can be worthless to another.
This is one of the most heated debates within the cryptocurrency community over the past couple of months, especially as NFTs grow in popularity. After all, as CryptoPotato recently reported, the searches for “NFT” had topped these of “ICO” from back during their peak in early 2018, highlighting the euphoria in this industry segment.
The topic became even hotter after Christie’s auctioned off Beeple’s ‘Everydays: The First 5,000 Days” NFT for a whopping $69 million, turning Beeple into the third-most valuable living artist on the planet.
In any case, NFTs are, in essence, an illiquid asset, which also poses a challenge in itself. Speaking on the matter, Daniel Kim, founder at NFTBank, said:
“… NFT holders must own their NFTs for a long period while being exposed to liquidity risk. NFTBank allows users to manage scattered NFTs across multiple blockchains in a single place…”