Kryptos Bank raises a16z funding to build NFTs for kids – Meczyki.Net

The past several months haven’t been entirely kind to the NFT market – while transaction volume hasn’t budged much, dollar amounts invested in the space have been in free fall as cryptocurrency prices took a historic dive. As background, this may not seem like the best time to launch an NFT platform, let alone one that is geared towards kids.

And yet, the NFT startup kryptoys The company is raising tens of millions of dollars with the goal of creating a blockchain-based toy company that can expose young users to the ideas of digital ownership and NFT mechanics. The platform, which will launch widely over the next few months, features characters in hats, sunglasses and big-eyed animals with cryptographically ensured exclusivity.

Platforms for trading non-fungible tokens often prove difficult to navigate even for adult users, so the prospect of making onboarding for younger users seems daunting. By partnering with Dapper Labs and launching its platform on the startup’s Flow blockchain, Kryptoise will remove some of this friction. Flow, on which Dapper’s NBA top shot runs, provides a blockchain-lite experience that allows users some of the hallmarks of NFT land, including high gas fees, complicated wallet onboarding and the inability to transact with payment methods like credit cards. Allows stumbling blocks to be removed.

Still, making blockchain easy enough for children to use is a contentious issue at the moment, as users must be 18 years of age or older to sign up for the platform, although CEO Will Weinraub says parents Wallets controlled by are on the way that will allow young users to interact more directly with the platform and learn about NFTs.

“You have to take a step back from this Web3 maximalistism,” Weinraub says. “You have to take small steps to get millions and millions of people into these new paradigms.”

Cryptoz is getting some help in this journey. The startup told Meczyki.Net that it recently raised a $23 million Series A round led by a16z crypto, with partnerships including Mattel, Dapper Labs, Draper & Associates, Acrav Capital, Coinfund, Animoca Brands and Sound Ventures, among many others. has stopped. The startup announced a $7.5 million seed round in October – also led by a16z Crypto.

image credit: onchain studio

The funding will give Kryptos parent company Onchain Studios some capital to build on its vision, which includes a number of NFT-adjacent opportunities, including games where users have the chance to earn NFTs through gameplay. Weinraub noted that the company also plans to create experiences that won’t require users to interact with NFTs, something that could prove helpful as the startup seeks to reach younger users on platforms like iOS. , which is not very friendly to crypto. Industry – although Weinrab believes this may change.

“Apple is constantly evolving how they think about these things,” he says.

One of the biggest questions raised by the NFT-for-kids platform is why kids would care about their in-app purchases being blockchain-oriented. Weinraub says kids are bouncing from platform to platform, meaning a lot of digital asset value is being lost, and they think their own kids will be interested in reselling in-game items , which they have bought and are tired of new digital purchases. Weinraub believes that the phenomenon of parents spending big bucks on Cartoon Animal NFTs has left plenty of room for them to bond with their kids over what it means to invest and own digital.

For parents who have been involved in the NFT space over the past several months, it is fair to say that many investments did not turn out to be as profitable as had been expected, even as many of the companies involved did not. Have seen big paydays. When asked if the startup missed the historic launch window of NFT razzmatazz, Weinraub said, “This is a better time to launch products, a lot of hype has been taken out of the market.”

Subscribe to Meczyki.Net’s crypto newsletter “Chain Reaction” with news, funding updates and summertime take on the wild world of Web3 – and listen to our companion podcast!