By Alan Hatfield
Blockchain-based NFT appraisal protocol Upshot yesterday announced a $22m Series 2A round led by Polychain Capital.
Upshot’s machine learning technology makes it the first technology company able to accurately and reliably appraise the value of digital assets like NFTs at scale. The company plans to put the funding towards continued R&D for its pricing model and growing its team.
“This past year has been one of explosive growth for NFTs, but the inefficient pricing mechanisms for these new assets has significantly limited their potential,” said Upshot co-founder & CEO Nick Emmons in a statement. “We’re incredibly excited to partner with Polychain, one of the premiere crypto funds, as we embark on this next wave of development.”
According to DappRadar, NFT trade volume grew to $24.9 billion in 2021 from only $95 million in 2020. However, difficult pricing mechanisms for such digital assets has remained an obstacle to the overall value growth of NFTs in terms of the user experience, crossover applications within DeFi, and more.
The only way to limit volatility and price bubbles within NFTs and create liquid digital assets, issues with scalability and accuracy within the market is through real-time NFT price feeds. This new round of funding will help Upshot demonstrate that real-time, machine learning and expert-sourced appraisals are an intuitive, accurate approach to solving this critical problem.
“Polychain is inspired by the vision of a collective intelligence platform rewarding its users for accurately modeling and pricing esoteric assets. Upshot provides deep insight into NFT markets and has already demonstrated the efficacy of their pricing models through industry-leading accuracy metrics, their appraisal of the Sotheby’s Bored Ape Yacht Club batch auction, and more,” said Olaf Carlson-Wee, Founder and CEO of Polychain Capital, in a statement. “Upshot is the premiere real-time appraisal market that will unlock the next wave of financial primitives for NFT markets.”