ABCDE: Why are we leading the investment in NFEx?
NFEx's vision is to establish the strongest liquidity platform for the NFT industry, serving not only individual users but also institutions, bringing significant breakthroughs in NFT liquidity to the industry.Author: BMAN
NFEx is a trading and clearing platform for NFT perpetual contracts. By providing derivative trading tools for the NFT market, NFEx aims to offer hedging, clearing, and risk management capabilities to the NFT industry and is committed to becoming the largest NFT liquidity platform.
ABCDE led the Seed round investment in NFEx, with follow-on investments from Amber Group and Firestone Ventures.
1. The Huge Problems Facing NFTs Today:
1.1. Insufficient Liquidity
The number of NFTs on Ethereum has surpassed 100 million, but 99.99% of NFTs lack liquidity.
Even NFT lending projects in the industry lack liquidity providers and clearing agents, leaving the vast majority of NFTs in a state of liquidity exhaustion.
1.2. High Transaction Costs
The NFT market often incurs royalty fees of 5-10% and transaction fees of up to 2.5%, exacerbating the already poor liquidity of the market. NFEx, through the design of contract derivatives, allows NFT players to avoid transaction fees and reduce their trading losses.
1.3. Inability to Short
Currently, NFTs remain a one-sided long trading market, lacking financial tools for shorting and hedging to provide protection. NFEx offers bidirectional liquidity to the NFT market, allowing for more flexible options whether for hedging, shorting, or leveraged long positions.
1.4. High Entry Barriers
Mature NFT projects like BAYC or PUNK have floor prices that have reached exorbitant levels of 60 ETH, which is very unfriendly to new users and those with insufficient funds. NFEx allows users to take long or short positions with as little as 0.1 ETH, enabling more people to participate in the trading market of blue-chip NFTs.
Thus, while the NFT market today holds immense potential, it urgently needs a platform that provides more derivative tool options and brings stronger liquidity to the market. NFEx is one of the strong contenders, with co-founders from top exchanges and liquidity market makers in the industry, who not only understand the NFT market but also possess professional trading and risk management experience, equipped with the comprehensive ability to build an industry-leading NFT derivatives platform.
2. Becoming the Strongest NFT Liquidity Platform
NFEx's vision is to establish the strongest liquidity platform for the NFT industry, serving not only individual users but also institutions, bringing significant breakthroughs in NFT liquidity to the industry.
On the institutional side, the NFEx team has years of experience as market makers, providing a foundation for solving liquidity issues for institutional users in the industry. NFEx will start by targeting mainstream NFT assets, providing clearing and hedging services for NFT lending platforms, NFT marketplaces, and more. In the future, all NFTFi project clearings can be completed on NFEx.
For individual investors, NFEx will be the most comprehensive and liquid NFT contract platform, allowing users to participate in the NFT trading market with lower entry barriers, cheaper transaction rates, and stronger capital utilization, providing the industry with more financial tools and trading varieties.
By expanding NFT financial derivatives and lowering usage barriers, NFEx will attract more NFT enthusiasts and new users, creating more liquidity for the industry and becoming the cornerstone of infrastructure in the NFT sector.
About ABCDE:
ABCDE is a VC focused on leading investments in top Crypto Builders, co-founded by entrepreneurs, public company CEOs, and top researchers with over 10 years of experience in the Crypto industry. The co-founders of ABCDE have built companies with a market value of billions of dollars from scratch in the Crypto sector. Because we are entrepreneurs, we understand entrepreneurs better. We have already built an end-to-end ecosystem for ABCDE's Builders, including public companies (1611.HK), exchanges (Huobi), SAAS companies (ChainUP), media (CoinTime.com), and developer platforms (BeWater.xyz). If you are a Builder with dreams of changing the world, join us in building the next generation of the crypto network world together.
