The founders of OpenSea, a non-fungible token exchange, were approaching a make-or-break moment after two years in business.
Since its introduction in December 2017, the platform has only made a modest $28,000 in commission revenue per month by March 2020, according to reports in a November 23 story headlined “What Every Crypto Buyer Should Know About OpenSea, The King Of The NFT Market.”
According to the story, the creators, 31-year-old Devin Finzer and 29-year-old Alex Atallah, stated the market for NFTs felt dead and that they planned to close if business hadn’t quadrupled by year’s end.
According to sources, they achieved that aim by September 2020.
The income increase, which was fueled by a 2.5 percent transaction commission, was only the beginning of what was to come.
According to sources, OpenSea, which is currently the largest NFT marketplace by trading volume, surged from $1.1 million in monthly transactions when it was just getting started to an all-time high of $3.4 billion in August 2021 (generating $85 million in commission money).
Finzer and Atallah have amassed a net worth in the hundreds of millions of dollars as a result of the NFT marketplace’s boom, and they’re on their way to becoming the crypto world’s newest billionaires, according to sources.
OpenSea has grown from obscurity to become the premier marketplace for NFTs, selling items such as CryptoPunks, the Bored Ape Yacht Club, Decentraland, and even a tungsten cube.
NFTs are blockchain-based digital assets such as artwork. While bitcoin tokens are fungible (meaning they may be duplicated), NFTs have a one-of-a-kind value. Some doubters, on the other hand, argue that the image has no value and that they can just right-click and save it.
Despite this, the market for NFTs has exploded this year. NFTs recorded $10.7 billion in trading volume in the third quarter alone, up 704% over the previous quarter’s $2 billion.
Finzer said in reports that OpenSea was successful because it was “at the right place at the right time.”