The latest non-fungible token (NFT) marketplace has raised $4,206,900 to tokenize and fractionalize the internet’s most famous memes.
Dank Bank, as it’s known, raised the pre-seed sum from lead backers Mechanism Capital, Samsung Next and former Coinbase Chief Technology Officer Balaji Srinivasan, the company said.
According to a press release, the marketplace sells fractionalized NFTs from iconic moments to pay creators and build community through shared ownership.
“You know, most people are going to recognize, like, Pepe the Frog and form a more personal relationship with it than will, like, a Rembrandt. A lot of the art that we think is the most valuable in today’s society is a lot less culturally significant than the biggest memes,” co-founder Prez Thomas told CoinDesk.
One meme can create 10,000 Pepes.
“The meme economy is the greatest use for fractional NFTs,” Jones said. “We can finally unlock the ability to invest in content as a collectible.”
Fractional NFTs allow for shared ownership of one digital asset. Creators create an NFT and then break it up into smaller tokens that can be purchased by multiple owners instead of one.
Dank Bank is not the only one that has access to fractionalized memes. September’s record DOGE NFT sale for 11,000 ether showed demand for shared ownership of culturally iconic content. This “meme economy” was kick-started by the 300 ETH sale of the Nyan Cat in February 2021.
Dank Bank will spend its funds snapping up the intellectual property of various “culturally iconic” and exceptionally viral memes with which to stock its marketplace, said Jones. It will encourage creators of NFTs to list them themselves and they will be entitled to 100% of the profits.
Dank Bank will cross-check creators against their real-world identities, as well as their “copyright documentation” to make sure they actually own the rights to the memes, according to Jones.
Dank Bank is an Ethereum-based bank and will soon be adding Polygon.
“Dank Bank plans to subsidize the gas costs for traders” on Polygon, said Jones.