Based on the idea that NFT auctions could be improved, it raised $3 million for a decentralized auction protocol built 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 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 significant projects.
Burnt Finance will now launch its own NFT marketplace, which will feature English, Dutch and Buy Now auctions, aiming to be a hub for NFTs, integrating DeFi functionality such as NFT lending, liquidity mining with staking incentives, fractionation and GameFi.
This will provide permissionless access to NFTs and claims to have low rates and fast speeds, with “160,000 users” on its waiting list. It also claims to have processed over $100 million worth of trading volume in 7 days on its Spark test network.
It also plans to expand to additional blockchains, including Terra and other EVM-compatible layer-one protocols.
Yat Siu, executive chairman and co-founder of Animoca Brands, commented, “Creating and trading assets in a permissionless ecosystem is crucially important to the economic foundations of the open metaverse.”
The global non-fungible token market 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 is pushing an open door. NFT sales covered $4 billion in December 2021 alone.
Competitors include, to varying degrees, of course, OpenSea, SuperRare, Rarible, and NiftyGateway. However, while Burnt is clearly still very early on, he is trying to outpace the bigger players by using Solana and heading into the DeFi space.