EToro Launches $20 million for NFT creators to Bring more Investors into the Space

Last Thursday, the popular trading platform, eToro, unveiled its $20 million to purchase NFTs and support creators at a contemporary art museum in Miami. According to the company, the fund is part of a new project called eToro.art that aims to aid NFT creators and brands.

The company’s U.S. managing director, Guy Hirsch, stated that the fund marks the beginning of a larger strategy for eToro. He added that the project will eventually offer a multitude of services to give investors more opportunities in this new age economy.

“Before, with bitcoin and ether, you had only the likes of Goldman Sachs or similar traditional financial players participating or looking at expanding into crypto,” Hirsch told CNBC. “NFTs are essentially making any and every potential brand a participant in this market.”

eToro recently showcased its digital art collection as part of its new initiative. The collection includes tokens from the Bored Ape Yacht Club, CryptoPunks, and World of Women. Additionally, the company aims to commit $10 million to support creators and brands bringing their NFT projects to market in 2022.

“Any brand can hone in on this and create some sort of an NFT that represents an ownership stake in part of the brand,” Hirsch added.

Global brands such as Nike, Gucci, Coca-Cola, and McDonald’s have begun using NFTs in their marketing strategies to enhance their customers’ shopping experience. However, some investors have struggled to see the value of NFTs and remain confused as to how these tokens achieve such high prices.

“Price discovery in digital art and knowing what to buy are still big question marks, but the industry is working on it,” Hirsch said.

“Today, investors typically use the floor price or the minimum amount of money you can spend to buy an item from a collection.”

He added that “It [pricing] needs to be more sophisticated than that.”

“We see new services emerging that will be akin to the appraisal process of traditional art. Within a year or two we’ll have third-party services that will appraise individual pieces and give you an approximate price on what you’re about to buy or what you own in a way that would be agreed on by market participants.”

Hirsch notes that art has always been a strong asset class for the wealthy, but eToro hopes to change this narrative by bringing new artists and investors together through NFTs.

“When these artists create a collection or NFT drop, the price on those would be quite low,” Hirsch said. “People would be able to participate, and if the community is strong and if the art is promising, it will appreciate in value, but the entry point would still be accessible to the everyday investor.”

Source: CNBC