Stakes has landed a $5.3-million seed investment which will result in the further development of the free-to-play social gambling platform. Powered by Web3 technology, Stakes wants to become one of the go-to options for innovative recreational gaming over the internet.
Web3 Technology Coming to Sports Betting Space
Previously operating under IAC, a prominent New York incubator, the company has now sought to attract capital through its own product portfolio. First respondents included venture capital firms, such as Matrixport, CMS Holdings, Digital Currency Group, Sterling Select Group, LD Capital, FBG Capital, and Cadenza Ventures, among others.
Stakes is changing the risk-reward equation when it comes to recreational gambling, and it is going to offer winners non-fungible tokens instead of the usual cryptocurrency or FIAT money payouts. These tokens can then be used to be traded with others on the platform, creating an inherent value for the more people there are participating.
Stakes CEO and founder Kevin Wang was excited about the project and argued that digital sports betting has become increasingly overwhelming in recent days, and instead of bringing people joy, it deprived them of emotion, a sense of community, or the energy associated with sports gambling.
Bringing Joy to Consumers
Wang is confident that Stakes will cater to a new generation of sports gamblers who want to enjoy watching their favorite teams while betting against friends and family and winning a unique product. He added:
“Stakes re-imagines sports betting for the 21st century by using NFTs as rewards. We combine social media, gaming and crypto to tap into what sports fans are truly after: friendly competition, showing off knowledge and earning bragging rights. NFTs are a unique way to achieve this.”
Stakes CEO and founder Kevin Wang
According to Rumi Morales, group director of investments for Digital Currency, cryptocurrencies and sports are only beginning to operate closer together and the coming years will be defining for the intersection between these two worlds. Stakes is in a position to leverage Web3 technology to make this a possibility, Morales adds.
Companies such as FTX, Coinbase, and Crypto.com have already signed numerous sports partnerships with prominent franchises. All three companies aired commercials during the Super Bowl in February, to an average audience of 112 million people.
Coinbase clearly won with a simplistic ad that had a QR code float around in empty space for 30 seconds. The segment cost $14 million and led to 20 million visits in a single minute after the commercial was over.