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Mogo Inc has initiated 25% interest in the NFT Trader platform through a convertible note and will be acquiring another 25% by direct purchase of NFT Trader shares in the secondary market from its founders.
On Wednesday, January 11, Digital payments and financial technology firm Mogo Inc announced its move into the Metaverse. Mogo has made a strategic investment in Canadian company NFT Trader that operates by securing peer-to-peer OTC trading protocols for non-fungible tokens.
The craze surrounding blockchain-based NFTs has shot up significantly over the last year. NFTs have also clocked billions of dollars in trading volumes in 2021. NFT Trader is a well-established trading platform and has collaborated with several popular projects like Bored Ape Yacht Club, Cool Cats, Gutter Cat Gang, and CyberKongz.
The NFT Trader platform functions around a decentralized Web 3 ecosystem for securely trading digital assets. It also offers wide support for interoperable swapping of many tokens. Mogo Inc’s initial investment is via a convertible note. Upon conversion, it will represent a 25% interest in NFT Trader.
Mogo can also acquire another 25% in the company via a secondary purchase of NFT Trader common shares from the founders. Besides, Mogo can also appoint one director at NFT Trader’s board of directors. It also has a prorate right for any future securities offerings from NFT Trader.
Soon after Mogo’s announcement, BTIG analyst Mark Palmer said that this looks like a normal expansion of Mogo’s platform. Thus, he expects the company’s shares to react favorably. The NASDAQ-listed company Mogo Inc (NASDAQ: MOGO) is currently trading at $2.86. Palmer expects the stock price to hit $13 levels.
Mogo and NFT Space: Overcoming the Regulatory Challenges
Apart from stepping into the world of NFTs, Mogo said that is ready to work in coordination with the regulators in Canada and bring the services of NFT Trader to its Canadian customers. Speaking of the development, David Feller, CEO of Mogo said:
“The world of finance is rapidly changing and nowhere is that more apparent than what we are seeing with the emergence of Web3, the Metaverse and NFTs. Trading volume for NFTs in 2020 was estimated at less than $100M and that grew an estimated 230 times last year to over $23 billion USD. This is also clearly just the beginning as we’re just starting to see a whole new crop of play to earn video games where players are rewarded in native crypto currency and where their characters are NFTs that can be traded.”
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