• Algorand NFT marketplace Rand Gallery is acquired by Distributed Finance

  • This morning, Distributed Finance came out of the woodwork, announcing a $2.5 million seed investment and the acquisition of Algorand NFT marketplace Rand Gallery.

    According to a press statement issued on Tuesday, the new company wants to support the growth of non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs) in the Algorand ecosystem.

    A $2.5 million seed round was raised.

    Borderless Capital, an investment firm that created a $500 million fund focused on the Layer 1 ecosystem in November, is leading the round for Distributed Finance.

    According to the statement, other investors in the round include The Algorand Foundation, Eterna Capital, Big Brain Holdings, and Fun Fair Ventures.

    Distributed Finance was created by the founding team of Zest, an Algorand DAO management tool. According to Ross Murray-Jones, CEO of Zest, in response to questions from The Block, Distributed Finance will now become Zest’s holding company.

    Zest has been working on a for-profit DAO structure in the Cayman Islands in recent months. According to the statement, institutional clients will have access to the Investment DAO LLC structure, which will allow an infinite number of worldwide members to access equity ownership in their DAOs.

    Borderless Capital and Al Goanna are among Zest’s clientele. Murray-Jones stated that the new $2.5 million in capital will be used to launch and scale Zest, expand Rand Gallery, and drive recruiting.

    Purchasing Rand Gallery

    Some of the seed funding was also used to acquire Rand Galley, he noted, though the terms of the deal were not disclosed.

    Distributed Finance has been working on the deal for six weeks, according to Murray-Jones. It will allow the team to increase their investment in Algorand, a proof-of-stake blockchain.

    “NFTs and DAOs overlap, meaning Zest and Rand Gallery have much in common,” Murray-Jones said. “Zest will use NFTs to access its DAOs, and Rand Gallery will introduce DAO products into its marketplace. For example, we recognise a tool like PartyBid is operationally efficient but would work much better integrated directly into a marketplace.”

    Mergers and acquisitions are on track for a record year.

    However, numerous high-profile merger and acquisition transactions have fallen through in recent weeks, including investment firm Galaxy Digital’s acquisition of crypto custodian BitGo and crypto miner Prime Blockchain’s merger with SPAC 10X Capital Venture Acquisition Corp II.

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