OpenSea is the largest NFT marketplace in cryptocurrency to date. Built upon the Ethereum network and some Layer 2 platforms, OpenSea holds a majority of the NFT trading volume. Many NFT enthusiasts have been highly anticipating a funding round for the company, which could see it take new steps to lower gas prices and improve functionality.
OpenSea has grown dramatically in the last few years. According to analytics websites, it has around 300,000 active users a month who trade more than $50m per day. The nearest competitors to the platform are dwarfed by the size and dominance it has on NFTs.
News broke on 6 December 2021 that OpenSea will be hiring the former Lyft CFO, Brian Roberts. Roberts aims to boost the NFT marketplace. He also hopes to push for an IPO alongside a new funding round for acquisitions and partnership opportunities.
While Roberts has no formal background in cryptocurrency, he told Bloomberg that Web3 and NFTs reminded him a lot of eBay during the early internet days.
This news came as a shock to many crypto enthusiasts who were hoping that OpenSea would launch its own native token. Typically, companies that go for an IPO do not launch their own cryptocurrencies, much like Coinbase, which was one of the few that did not start their own native token.
Speculators believed a native token set up by the company would quickly explode in volume and make them one of the top 10 projects by market cap.
An IPO for OpenSea could potentially be very successful. These funds can be used to take the NFT marketplace to the next level. One of the biggest upgrades the platform could do is to increase the file size limit on NFTs. Doing this will allow more mediums, utility, and NFT types to develop. For example, the current file size limitations restrict the NFT music industry from releasing full songs or albums via NFTs.
If OpenSea goes public, it will be interesting to see what happens to their stock as NFTs continue to grow in utility and demand. Would you buy OpenSea stock?