4K, a breakthrough peer-to-peer marketplace for collectibles and luxury goods powered by NFTs, has announced a seed raise of $3m.
The funding enables 4K to create the next generation of StockX by leveraging the transparent and immutable power of blockchain technology.
The initial round coincides with the launch of 4K.com’s fair drops and closed beta marketplace.
4K says its mission is to empower users to transact with more trust, more transparency, more speed, and a significant reduction in fees.
The concept will see customers send 4K a physical item, such as a Rolex watch, to be authenticated and stored in an ultra-secure storage facility.
Once stored, the customer receives an NFT, which can be thought of as a digital version of the physical good.
Redemption of the item is just as easy: upon returning the NFT to 4K, the physical good is sent to the address provided by the redeemer.
4K uses the benefits of decentralized finance (DeFi) to turn physical goods into NFTs. DeFi is a new set of payment rails and protocols that enable people to coordinate financial activity without intermediary institutions charging fees along the way.
Through decentralization, users can transact with low fees, make collateralized loans, and earn a yield on their assets.
Richard Li, CEO of 4k, said: “4K adds completely new dimensions to the market for collectibles and luxury items. For example, we give brands skin-in-the-game in secondary-market trading.
“It also adds a completely new dimension to NFTs. The NFTs most people have heard about are for digital assets. We’re enabling NFTs for physical assets. As we spend a larger portion of our lives online, bridging the physical and digital worlds becomes increasingly important.”