reNFT, a multi-chain NFT rental protocol, recently announced that it raised $5M in its funding round co-led by Mechanism Capital and gumi Cryptos Capital.
This funding round will empower reNFT to develop GameFi further, integrate more blockchains, extend the product suite, and enhance NFT rental infrastructure in the metaverse.
Companies investing in the company include OpenSea, The Sandbox, Animoca Brands, Gemini, Sparkle Ventures, SkyVision Capital, Sfermion, Metastreet, Daedalus, Genblock Capital, Lattice Capital, and many more.
What is reNFT?
The successful funding round shows that reNFT holds huge potential in the Web3 market. The platform is built with the vision to rent and lend NFTs with a temporary right to users to use for a short time.
reNFT is a protocol that allows collateral-free in-house renting, lending, and reward share of virtual assets while promising security and privacy.
It is built to target the gaming industry as people need certain in-game assets to navigate through their favorite games. reNFT is an advanced technology in GameFi that enhances user experience in Web3 by providing lending solutions.
For example, if you have an NFT event ticket but cannot attend it and don’t want to sell it for its utility then you can simply lend it on the reNFT marketplace to some other person. Similarly, if you want to host an event in a metaverse but don’t have enough land, you can rent it via reNFT.
The rental protocol basically works the same way as any in the real-life rental business. You lend something for money or rent something and earn money but in a virtual space.
This model will revolutionize the whole industry as people will be able to earn money and play games without worrying about buying expensive NFTs. Thus, the successful funding round.
reNFT will lead the GameFi industry
The growing Web3 gaming industry is built upon models of play-to-earn, play-and-earn, or move-to-earn. These games require users to own some kind of NFT as avatars or in-game assets to complete a mission. reNFT can rent or lend these virtual assets temporarily to gamers.
According to the Medium article, reNFT allows participation by rent costs cut down to 15–30%, and “more of that revenue can go to the holders of the assets and the renters of them.”
“Through reNFT, every single in-game NFT asset owner will be able to participate in this GameFi market, easily and directly, without collateral requirement or exposure to the risk of losing their assets. reNFT will unlock the full potential of the GameFi market aggressively,” said Rui Zhang, Managing Partner of gCC.
“Without a powerful rental primitive, NFTs are going to miss the mark when it comes to capital efficiency and ease-of-use,” Brian Fakhoury of Mechanism Capital says.
“Rather than depending on custom-built logic, any project incorporating NFTs as a capital asset and gateway to their application should tap into proven infrastructure like reNFT.”
reNFT will use these funds to expand its team further and expand in GameFi ecosystems and blockchain networks. reNFT supports collateral-free renting and lending tools on Ethereum and Avalanche blockchain and will soon add Solana and Polygon as well.
Currently, reNFT is focused on leading the GameFi industry in a new direction and later expanding to lend other physical and virtual assets on the blockchain.
For more information on reNFT visit the official website or follow @renftlabs on Twitter.