Token.com’s metaverse subsidiary acquires NFT coining platform CocoNFT
Metaverse Group aims to use CocoNFT’s platform to expand in the creative economy.
Vancouver-based startup CocoNFT, which offers an NFT mining platform for social media posts, has been acquired by Tokens.com’s metaverse subsidiary.
Metaverse Group, a Tokens.com subsidiary, announced on Tuesday that it acquired Coco to promote the latter’s offering and integrate it with Metaverse’s virtual world B2B products.
NFT sales have fallen to a 16-month low.
Founded in 2019 as a joint venture between GDA Capital Corporation and Wolfest Woods, Metaverse consists of several firms focused on various areas of the metaverse industry, including real estate development, metaverse capital markets and other related services.
Metaverse, which has its global headquarters in the virtual world “Crypto Valley” of “Decentraland”, also offers additional services such as assistance in marketing and advertising in the metaverse.
With Coco, Metaverse aims to be “at the forefront of the development and expansion of Web3 and NFT use cases,” according to Tokens.com CEO Andrew Kiguel, who is also executive chairman of Metaverse.
NFT sales skyrocketed in early 2021, ushered in by the rising popularity of monetized games like Dapper Labs’ CryptoKitties, and digital collectibles like NBA Top Shot. This led to many popular brands such as Nike, Balenciaga and even public figures such as Snoop Dog buying into the crypto mania.
As the sector saw more fraud, theft and tax regulations, the value of NFTs and activity in the area has declined significantly. Bloomberg reported in December 2022 that NFT sales have fallen to a 16-month low.
The general downturn in the crypto market has hit Toronto-based Tokens.com, which trades on the NEO exchange and the Frankfurt exchange. The share price is down 95 percent in the past year, and was trading at USD 0.10 at press time. In contrast, Tokens.com’s stock price hovered around $2.75 USD in November 2021.
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As part of the deal, Coco’s co-founders Mark Allen and Brody Berson will join Metaverse as chief technology officer and chief product officer, respectively. Coco’s third co-founder, Reid Robinson, has not publicly confirmed whether or not he has joined Metaverse. However, he has notified via Twitter that more details will be announced “soon”.
Established in 2021, Coco’s NFT generator allows users without Web3 knowledge to convert Instagram posts into purchasable NFTs, with no upfront costs. Coco makes money through commission, collecting a five percent royalty on all first and future sales. Coco’s partner, Rarible, also charges a 2.5 percent service fee if the NFT buyer checks out on Rarible.com. In addition to Rarible, Coco also has a partnership with OpenSea, the largest digital marketplace for NFTs and other crypto collectibles.
Berson made a statement on Twitter in February 2022 mentioning that Coco raised a round of pre-investment but did not disclose the amount. BetaKit has contacted for details.
According to Metaverse, Coco will help expand the former’s reach within the creative economy. Metaverse said it will use Coco’s platform to engage with creators and brands, eventually developing “one-to-one marketing strategies.” It will also enable Metaverse to “come to market” with its own proprietary NFT and virtual products.
