“The red shirt capital of the front foot allin blockchain, the back foot OpenSea is planning an IPO, who betrayed Web3.0.

OpenSea betrayed Web3.0.

Recently, the news of the upcoming IPO of OpenSea, the world’s largest NFT trading platform, has spread like wildfire, attracting a large number of airdrop users on the platform:

“I thought I could squeeze the wool, but it turned into revenue.”

“I expected it to be airdropped before, but now I can only take stocks? It’s like a dream, and I am still very moved when I wake up.”

“Their venture capital did not get them to where they are today, we did it.”

“It’s terrible to hear that OpenSea is selling and doing an IPO.”

The news of OpenSea’s upcoming IPO is not groundless. According to Bloomberg News, OpenSea has hired Brian Roberts, the former CFO of the leading U.S. ride-hailing platform, as the company’s chief financial officer, and Roberts also hinted that the IPO will be promoted soon, saying: “When you have When a company grows as fast as OpenSea, it would be foolish if you don’t consider it to go public.”

In addition to Roberts’s explicit mention of the listing plan, its founder and CEO Devin Finzer also said euphemistically that although Roberts is not short of money (just recently raised $100 million at a valuation of $1.5 billion), OpenSea raised More funds received can be used to acquire companies, establish partnerships and establish joint ventures to further expand the use of NFTs to new industries. The company is currently working with investors including a16z, Founders Fund, Coinbase and Blockchain Capital Discuss new financing issues. (Supplement: At present, no company has issued its own token after IPO)

However, it should be noted that OpenSea has not yet clearly stated that it will not issue tokens. Some optimists believe that OpenSea may concoct a hybrid model that combines traditional IPOs with certain types of community tokens. However, with the continuous emergence of IPO news, even the community believes that OpenSea has betrayed Web3.0. .

OpenSea: A company that was “lifted” to the top of NFT

What kind of company is OpenSea?

First of all, OpenSea is an NFT trading platform that makes a profit by charging a 2.5% transaction fee for seller transactions. However, OpenSea is the world’s largest NFT trading platform. Since its launch, its historical sales have exceeded 10 billion U.S. dollars. It is reported that the monthly transaction volume of the OpenSea platform reached 3.4 billion U.S. dollars at the peak of the transaction in August. It is currently in November’s NFT In the transaction, OpenSea monopolized 92.5% of the market share.

"The red shirt capital of the front foot allin blockchain, the back foot OpenSea is planning an IPO, who betrayed Web3.0.

Data source: Dune Analytics

In fact, OpenSea is a tens of billions of unicorns that have been “lifted” to the top of the NFT industry. However, it is not what the airdrop users said in the previous article. It was only lifted by them. Those who lifted OpenSea to the top of the throne are also the wind and capital. Hand.

Just as it is said that pigs can fly when standing on the tuyere, the advent of the NFT tuyere allows OpenSea to fly successfully. According to OpenSea founders Devin Finzer and Alex Atallah, they launched a platform that can create, buy and sell various irreplaceable NFTs-at the beginning of OpenSea, It was a miserable life. After 26 months of going online, they only had 4,000 active users making 1.1 million USD monthly transactions, which is equivalent to (based on OpenSea 2.5% sales commission) platform monthly revenue of only 28,000 USD.

This situation took a turn for the better in February 2021. The NFT market began to wake up. A large number of users poured into the platform to trade NFT on the platform. Since then, almost every phenomenon-level explosive NFT has been released or KOLs such as Beanie and Gary Vaynerchuk promoted it at the same time. In a certain NFT series, the OpenSea website will collapse due to the surge in the number of visitors.

The rapid expansion of OpenSea is like a butterfly flapping its wings in the Amazon rainforest, which will cause a series of reactions. First of all, investors have seen the wealth portal. They look forward to OpenSea issuing their own native tokens and believe that if OpenSea issues tokens, they will definitely issue airdrops to users (in fact, OpenSea has indeed issued and governed tokens), so some people do not hesitate to spend human and financial resources. Hundreds of accounts interact with OpenSea one by one, hoping to make a lot of money when sending airdrops.

Then when the airdrop users helped OpenSea to scan the data, the capital again saw the wealth value behind it, and they put aside the olive branch of capital on OpenSea (although Redshirt Capital did not invest, it recently expressed that it wants to be all in the blockchain). The final result we saw is that OpenSea has become the world’s largest NFT trading platform, and in 2021 it has also received investment from a number of head funds including a16z and Coinbase (in 2021, it received US$23 million in Series A and US$100 million, respectively. Series B financing. Currently, multiple rounds of financing of US$1 billion in Series C financing are underway.

OpenSea: A company that thrives on

OpenSea, which has been promoted to the leading position, is still a company that has been growing up and has an unstable foundation.

The development of OpenSea is very rapid. From 4,000 monthly active users to 200,000 monthly active users, the 50-fold growth of OpenSea in half a year is a miracle, but it has also plunged OpenSea into crisis many times. For example, the server crash problem mentioned in the previous article. According to statistics, OpenSea crashes caused by NFT transactions in 2021. There were more than 11 large and small crashes, and there were countless times of congestion. The problem of pending orders), caught in a series of problems that OpenSea is not ready to meet the rapid growth.

Another example is the shocking “mouse warehouse” incident not long ago. OpenSea employees took advantage of their positions and used several small accounts to buy NFTs in advance, and then advertised them on the front page to make their value soar. , And finally transfer it to the main account to complete the transaction. The mouse warehouse incident caused strong resistance from users after Twitter was shaken. OpenSea had to take emergency measures, namely, prohibiting OpenSea employees from buying their NFTs when the company advertises collectors or artists, and prohibiting OpenSea employees from buying and selling through inside information. NFT (not limited to the OpenSea platform) in order to calm the anger of the public, but from the perspective of God, OpenSea is undoubtedly helping.

At the same time, the foundation of OpenSea is unstable. Although OpenSea certainly has an overwhelming advantage over the industry’s second-ranked Rarible (other platforms add up to not have as much transaction volume as OpenSea), but strong enemies are coming. Recently, exchanges including Coinbase and FTX.us have announced plans to launch the NFT market. , And as Sequoia Capital and other institutions join the war to cheer, the threat of latecomers will become greater and greater in the future. And if OpenSea really can’t apply for airdrops, presumably this part of the profit-driven core users don’t mind changing places to apply for airdrops, and their departure will also counteract its valuation.

Harvard Business School Associate Professor Scott Duke Kominers also said, “Early leaders in the encryption field face great risks. The first participants in an industry are not necessarily the most successful. Your network must be strong enough to overcome subsequent borrowings. The successful part of your business model does not target competitors with slightly different audiences.”

Finally, back to the beginning question, what kind of company is OpenSea? I think my answer is: OpenSea is a more influential NFT trading platform, nothing more.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-red-shirt-capital-of-the-front-foot-allin-blockchain-the-back-foot-opensea-is-planning-an-ipo-who-betrayed-web3-0/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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