Israeli social trading and multi-asset brokerage firm eToro is getting into the non-fungible token (NFT) game with the launch of a $ 20 million fund.
The NFT craze
A decade ago, the million dollar JPEG idea would have been hilarious. Yet now everyone wants an animated NFT monkey that could make them millionaires. Here's how blue-chip NFTs have carved out a niche for themselves.
In the traditional financial market, a 'blue chip' refers to a company that is considered a reliable investment. Some NFTs that have skyrocketed, such as Cryptopunks or BAYC, may be called blue-chip NFTs. Market watchers have started calling these projects 'blue-chip NFTs' to believe they will hold their high valuations for a long time to come.
With NFT fever on the rise, every collector is aiming to find a design that could be a blue-chip NFT. However, it is not easy to find the right project soon. With plans to buy blue-chip NFTs and support emerging projects in space, eToro announced the launch of its $ 20 million fund on Thursday.
EToro's entry into NFTs
According to an eToro press release, the allocated fund will be distributed through the “eToro.art” platform just launched by the company. The platform aims to bring the “fun and community” of the NFT industry to its 27 million users.
Additionally, eToro claims it will be “one of the leading NFT collectors in the world” after its funds are fully distributed. The eToro.art platform has a collection that already includes NFTs from projects like Bored Ape Yacht Club, CryptoPunks and World of Women, and others.
Yoni Assia, co-founder and CEO of eToro said:
"As a company with a constant eye on 'what's next', eToro sees tremendous potential in the metaverse and a host of new digital assets."
Recently, major brands are turning to NFTs. In particular, since Visa has purchased CryptoPunk in August 2021, high-profile names followed suit. KPMG Canada purchased a World of Women NFT in February. At the same time, Universal Music Group built an NFT group around a Bored Ape figure.