New York-based decentralized NFT auction protocol Burnt Finance has secured $8 million in a Series A funding round led by VC firm Animoca Brands. The platform seeks to expand its team and product features along with scaling partnerships with other Solana-based projects.
The round also saw participation from Multicoin Capital, Alameda Research, DeFiance, Valor Capital Group, Figment, Spartan Capital, Tribe Capital, Play Ventures, HashKey, Mechanism Capital, DeFi Alliance, Terra, Fantom, and others, suggesting soaring popularity of the platform.
Burnt Finance gained traction after pulling off a stunt where it bought an original artwork by Banksy for $95,000 before burning it in a Twitter live. The company then created an NFT of the artwork and sold it on NFT marketplace OpenSea for 229 ETH, worth $400,000 at the time.
Since then, Burnt Finance has launched its NFT marketplace and auction protocol. The platform allows users to mint synthetics, NFTs, and new digital assets in less than a few minutes and offers full control over their auctions in a permissionless ecosystem.
Burnt Banksy, the anonymous founder of Burnt Finance, told crypto media Blockworks:
“Over time, we will become an all encompassing multichain hub for NFTs by integrating DeFi functionality which include NFT lending, liquidity mining with staking incentives, fractionalization, and GameFi.”
The protocol previously raised $3 million via a private token sale round held in May last year. At the time, the round was led by Alameda Research, with participation from Multicoin Capital, Polygon COO Sandeep Nailwal, Terra CEO Do Kwo, and others.
“The Burnt team and product vision have both grown significantly since the close of the seed round,” Banksy said. “We are now looking to expand onto other chains such as Terra and Fantom while building out new functionalities that bridge the worlds of DeFi with NFTs.”