tokenproof Raises $5M in Seed Funding, Led by Penny Jar Capital, to Bring Safety & Utility to NFTs
Tokenproof, an easy and secure way to unlock the value of Non-Fungible Tokens (NFTs), today announced it raised a $5M round of seed-funding led by Penny Jar Capital, with participation from Corazon Capital, 6th Man Ventures, Canonical Crypto, and prominent angels including Sebastien Borget, Mark Cuban, Keith Grossman, and Patricio Worthalter. tokenproof lets owners enjoy the benefits of their NFTs without putting them at risk, while also making it easy for companies to leverage tokens as an extension of their brand – whether in the real world or online.
With an increasing number of big brands entering the space, the NFT market is expected to grow by $147B over the next five years, according to a July 2022 report from Technavio. However, using NFTs comes with substantial risks for users, and logistical challenges for brands. That's because to unlock the value of an NFT, a user typically has to connect their digital wallet to use their tokens, exposing not just the required NFT, but all other assets in the wallet. tokenproof removes this risk by creating credentials that serve as proof of ownership of a digital wallet and its assets.
"Eliminating the unnecessary risk of connecting or carrying a digital wallet is crucial for mainstream use of NFTs," said Alfonso (Fonz) Olvera, Founder and CEO of tokenproof. "We are dedicated to delivering the security and privacy users deserve while making it seamless for companies to unlock the possibilities of NFTs and connect with people in compelling and creative ways."
After a one-time verification of a user's digital wallet, tokenproof issues a proof of ownership credential, while the actual wallet remains securely disconnected. The tokenproof mobile app creates dynamic QR codes to authenticate and unlock the value of NFTs; whether that's access to an invite-only event, a membership benefit, or a retail experience – in the real world or online. Companies using tokenproof for verification can customize the experience with flexible authentication rules, such as VIP access, discounts, or exclusive content.
At this year's NFT NYC, the leading non-fungible token conference, tokenproof powered over 75 events, including the Bored Ape Yacht Club's ApeFest, delivering a frictionless experience for both attendees and hosting companies, and establishing tokenproof as the go-to ticketing solution in Web3.
"The tokenproof team were amazing partners and a joy to work with," said Kerem Atalay (EmperorTomatoKetchup), co-founder of Yuga Labs. "Stoked to see where they're headed from here and can't wait to work with them again."
The funding follows the company's success at both physical and virtual events and will fuel the expansion of additional use cases for NFT verification, including online services, and retail experiences.
"We believe NFTs will transform how brands connect with customers, but only with seamless on-ramping and greater security," said Bryant Barr, co-founder of Penny Jar Capital. "Fonz and team are solving this massive Web3 problem by creating a safe way to realize the value and benefits of NFT ownership."