Burnt Finance is a crypto startup that, as a stuntman, burned a piece of Banksy artwork and then the NFT they minted for $400,000, double what it cost on the market. the “normal” open art.
Based on the idea that auctions for NFTs could be improved, he then raised $3 million for a decentralized auction protocol based on the Solana blockchain. This round was led by Multicoin and Alameda Research and was incubated by Injective Labs, the main contributors to the Injective Protocol multi-chain network.
Now it’s getting more serious.
Burnt Finance has now raised an $8 million Series A funding round led by Animoca Brands, which develops and publishes a broad portfolio of blockchain games, traditional games and other products.
Multicoin Capital, Alameda Research, DeFiance, Valor Capital Group, Figment, Spartan Capital, Tribe Capital, Play Ventures, HashKey, Mechanism Capital, DeFi Alliance, Terra and others also participated.
Of these investors, Multicoin is perhaps among the best known, as it has been investing in the blockchain space since 2017 and has invested in Solana, NEAR, MobileCoin (used for P2P payments in Signal), and several other prominent projects.
Burnt Finance will now launch its own NFT Marketplace, which will offer auctions in English, Dutch and Buy Now, aiming to be a hub for NFTs by integrating DeFi functionality, such as NFT lending, liquidity mining with staking incentives, splitting and GameFi.
It will provide permissionless access to NFTs and claims to have low fees and fast speeds, with “160,000 users” on its waiting list. It also claims to have processed over $100 million in transaction volume in 7 days on its Spark testnet.
It also plans to expand to other blockchains, including Terra and other EVM-compatible Layer 1 protocols.
Yat Siu, Executive Chairman and Co-Founder of Animoca Brands, commented, “Mining and trading assets in a permissionless ecosystem is critically important to the economic foundations of the open metaverse.”
The global market for non-fungible tokens reached around $22 billion in 2021 according to DappRadar. Traditional auction houses Christie’s and Sotheby’s have also expanded into the NFT space.
Burnt Finance pushes an open door. NFT sales topped $4 billion in December 2021 alone.
Competitors include, at varying levels of course, OpenSea, SuperRare, Rarible and NiftyGateway. However, while Burnt is clearly still very early, he is trying to get ahead of the big players by using Solana and moving into the DeFi space.