Arcade, a credit provision platform that utilizes NFTs as loan collateral, has reportedly generated capital worth $15 million in its first series fundraiser.
The credit company that is formerly known as Pawn.fi, has revealed in an announcement on its Twitter page that its just-concluded series A fundraiser has provided $15 million worth of capital to facilitate its plans for global crypto users in 2022.
Arcade’s Series A Fundraiser
A first series fundraiser or series A funding round is a type of equity-based financing that start-up companies organize to raise capital that will allow investors to commit their capital in exchange for an equity interest in the company
The fundraiser round was led by Pantera Arcade’s Series A fundraiser was led by Capital, an American hedge fund that specializes I’m cryptocurrency, with other crypto firms like Castle Island Ventures, Franklin Templeton Blockchain Fund, Golden Tree Asset Management, Eniac Ventures, Protofund, Probably Nothing Capital, and Lemniscap.
Seed investors like BlockFi CEO Zac Prince and Quantstamp CEO Richard Ma participated in the fundraiser.
The fundraiser event will facilitate Arcade’s expansion, and subsequent public launch to reach more users, Robert Masiello, co-founder of Arcade, told reporters in a press release.
The just-concluded Series A fundraiser has raised the total revenue generated by Arcade’s first series of funding to $17.75 billion. Maisello revealed previously concealed information that the credit firm raised approximately $2.75 million in a similar equity leveraged fundraiser earlier in May.
The number of employees in the credit company is currently 13, but the start-up company is looking to hire qualified individuals for relevant roles spanning product, business development, marketing, and engineering functions.
The Arcade Credit Service’s Framework
The credit company’s loan provision services leverage Ethereum based non-fungible tokens (NFTs) as collateral. Provision for credit withdrawal is made available with the aid of ERC-20 tokens. According to co-founder Masiello, Arcade will support withdrawal for all ERC-20 tokens and top stablecoin USDC and DAI. He added that Blockchain networks other than the Ethereumbased network are being considered for support for usage in 2022.
The company’s current target customers are institutional lenders and high-net-worth retail investors.
The platform will reportedly earn a tiny percentage on every complete transaction its model oversees.
Arcade’s credit system is accessible through its private beta platform application software. It will be open to the public in the first quarter of 2022, said Masiello.
In a subsequent in-house report, the company claimed that it had facilitated loans up to $800,000 since its inception. According to the private release, Arcade’s total volume of loans facilitated is $3.3 million.
In the global DeFi space, Arcade isn’t the first, nor is it the only crypto firm that provides loans by leveraging NFTs. Crypto firms like NFTfi and Pawnfi are relatively strong competitors in the NFT credit sector.
Masiello enlightened users of Arcade on its superiority over its global competitors as he explained that the company’s edge is its framework’s enablement that allows numerous NFTs to be grouped to be used as collateral for a single loan.
The framework utilizes the digital assets package Masiello called the wNFT, which helps lower transaction fees as multiple transactions can be wrapped and treated as a single transaction.