Rare Bits raises $6 million for site where you can buy and sell CryptoKitties

Rare Bits has raised $6 million in enterprise funding for its blockchain-based retailer the place you should buy and promote digital property comparable to CryptoKitties.

CryptoKitties are blockchain-based digital kittens that may be purchased and offered for as a lot as $200,000. That appears form of nutty, you then most likely assume the identical a few startup that allows you to purchase and promote CryptoKitties. But the buyers who're funding Rare Bits clearly don’t assume it’s nuts.

The lead investor is Spark Capital, a widely known recreation startup investor, and its managing director Nabeel Hyatt (who spoke at our GamesBeat Summit convention), is becoming a member of Rare Bits’ board. Other buyers embrace First Round Capital, Craft Ventures, SVAngel, Neil Mehta, Justin Kan (founding father of Twitch), Emmett Shear (CEO of Twitch),
Aditya Agarwal, Ruchi Sangvhi, and Avichal Garg.

“We have a really great set of investors,” mentioned Amitt Mahajan, cofounder and chief know-how officer at Rarebits, in an interview with GamesBeat. “As for crazy, isn’t that how all great businesses start? You have an opportunity and you have a crazy idea.”

The CryptoKitties, he mentioned, seem to be tradeable toys.

“But what they are under the surface is actual property, like Beanie Babies,” Mahajan mentioned. “The idea of collecting stuff is human, and in this case, cats are just a starting point. They represent true digital ownership, which we have never had before. From that perspective, this is a massive opportunity. Our job is to move it from digital cats to something with both online and offline value.”

One factor the corporate is addressing is find out how to make cryptocurrency extra acquainted to the mainstream customers.

Mahajan mentioned the corporate has additionally launched a closed beta for one thing new known as Fan Bits. With Fan Bits, the corporate is partnering with influencers on Twitch and different social media to create blockchain-based celeb memorabilia and collectibles for the influencers’ audiences.

“They can create new content on the blockchain to monetize the audience directly,” Mahajan mentioned. “Imagine if Beyoncé released 10 offline crypto tickets to a backstage event. How many people would bid for that?”

Rare Bits has eight workers. Besides Mahajan, the cofounders embrace CEO Dave Pekar, Danny Lee, and Payom Dousti. They initially obtained collectively to make a blockchain recreation, like a Hearthstone for blockchain. They began to appreciate that that they had a possibility for a market for blockchain characters and gadgets, as they go from one recreation to a different.

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