CoCreate is the leading company in its field: the creation of cryptocurrencies backed by NFT projects. NFTs are disrupting many industries such as fashion, art, music and even horse racing ! But today there are few cryptocurrencies linked to NFT projects. We can note the ApeCoin (APE) token linked to the collection of NFT Bored Ape Yacht Club. Thus, Co:Create has the ambition to help NFT collections to issue their own tokens. But why would we buy the token from an NFT collection? What are its uses?
A big fundraiser for Co-Create
Startup Co:Create recently completed a $25 million first round of funding to help NFT Collections launch their own tokens. This first round was led by Andreessen Horowitz (a16z) with participation from VaynerFund by Gary Vaynerchuk, Not Boring Capital by Packy McCormick, Amy Wu and RTFKT. This fundraising will allow the company to develop and recruit new talents in order to develop their services. The startup uses its own protocol to generate customizable tokens and rewards for participating NFT projects. This process makes it possible to pay royalties with tokens issued on a decentralized exchange (DEX).
A project based on three pillars
Co-Create is based on three fundamental pillars. The first is to help projects develop their community. Indeed, by decentralizing the governance of the NFT project through a fungible token, this would allow the token to be used as a means of extending this community. Thus, by issuing a token associated with the collection of NFTs, it will allow the creation of decentralized collections arousing enthusiasm. Second, Co:Create aims to encourage community participation in the NFT Project. For example, the company implements reward programs. Thus, developers external to the NFT collection can be encouraged to create games centered on this collection in exchange for an allocation of tokens from this project. Ultimately, Co:Create's third focus area is governance. The limited tools available to NFT projects today have resulted in a high degree of centralization. A particular group or subset of contributors to a DAO (Decentralized Autonomous Organization) largely drives key decisions about the project. Associating a token with a collection of NFTs will therefore allow for better decentralization.
Co-Create, a project that does not claim to be the champion of a single blockchain
Most well-known NFT projects, such as BAYC, tend to live on the Ethereum blockchain. However, competitors have quickly attracted new projects to their ecosystems by promising greater efficiency and reduced costs ( like Solana ) or a smaller ecological footprint ( like Polygon). Co:Create does not only collaborate with NFT projects on the Ethereum blockchain. This means that Co:Create supports NFT projects built on Solana, Tezos or Polygon blockchains for example. The promotion of token-linked NFTs follows the continued success of ApeCoin (APE). AepCoin (APE) is the token linked to Yuga Labs' Bored Ape Yacht Club and Mutant Ape Yacht Club NFT collections. After some early price volatility, the token now has a market capitalization of nearly €2 billion. In fine Co:Create said it is already in talks with several prominent NFT collections that participated in the round and are planning to launch their own tokens.
New NFTs keep popping up every day. And Co:create brings real innovation to this sector. We can't wait to discover the next collections of NFTs that will decide to launch their own governance token!