Fractal, the gaming non-fungible token (NFT) marketplace founded by Twitch co-founder Justin Kan, has acquired $35 million in funding backed by investors including Paradigm and Multicoin Capital.
The San Francisco-based company is a web3 platform for gamers to buy and sell items in games under the Solana blockchain.
Back in December 2021, Fractal faced a rocky debut when its Discord server was hacked, defrauding almost half of its members in Solana crypto valued at $150,000.
The company implemented tighter security procedures and even restricted its staff’s access to its web communication. Fractal which is backed by Kan’s GOAT Capital fund reimbursed its users.
Fractal could also face gamer animosity as most believe that NFTs are a pure scam and blockchain gaming is a pyramid scheme, thus the game developers giants, Square Enix Holdings Co., Ubisoft Entertainment SA, and Electronic Arts Inc. received tons of backlash upon announcing their interest in incorporating NFTs into their games at the recent Game Developers Conference.
Although Kan thinks that NFTs are better for gamers, in his recent Twitter post he said “Allowing gamers to have ownership of the assets they buy and earn in-game allows them to participate in the potential growth of a game. It lets gamers preserve some economic value when they switch to playing something new.”