Michael Bodley

<div id="highlights-block_621f7231619aa" class="highlights">
 <ul>
 <li>Nested allows user to mint an NFT that replicates their investment portfolios</li>
 <li>Trades are tracked via smart contracts that update the digital collectible, eliminating the need to mint a fresh NFT with each transaction</li>
 </ul>
 
</div>



A DeFi platform, with a social investing twist that allows users to showcase their investment strategies via NFTs, has raised a $7.5 million round led by billionaire Alan Howard.



Nested Finance intends to use the Series A round to hire staffers, expand to additional blockchains and ramp up its staking capabilities, founder Rudy Kadoch told Blockworks.



Aside from Howard, investors including CMT Digital, <a href="https://kenetic.capital" target="_blank" rel="noreferrer noopener">Kenetic Capital</a> and Republic Capital also participated in the round. 



The startup allows users to mint an NFT (non-fungible token) on a supported blockchain of their choice that uses smart contracts to exhibit their DeFi (decentralized finance) trades on Nested’s platform. Traders — the majority are retail investors — are responsible for covering the costs of minting the NFT.



Supported blockchains now include <a href="https://cms.blockworks.co/?s=avalanche" target="_blank" rel="noreferrer noopener">Avalanche</a>, Binance Smart Chain — now <a href="https://cms.blockworks.co/in-overture-to-decentralization-binance-rebrands-its-blockchain/" target="_blank" rel="noreferrer noopener">known as BNB Chain</a> — and <a href="https://cms.blockworks.co/?s=polygon" target="_blank" rel="noreferrer noopener">Polygon</a>.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“Even if you are not a famous person on Twitter, you can create a reputation on Nested,” Kadoch said.&nbsp;</blockquote>



Once minted, the NFT is updated via smart contract to display new trades in real-time, eliminating the need to mint a fresh digital collectible as a trader’s portfolio shifts over time. Users do not connect their Nested portfolio to a centralized crypto exchange; liquidity is provided from the decentralized exchange 0x.



Nested, which allows users to replicate another trader’s portfolio, is betting on surging interest in crowdsourced alpha driven by social media success stories. The idea, Kadoch said, is to bring a clean, streamlined interface to the messy world of DeFi to cut through the crypto noise.



The startup’s founder likened the company to the early days of Coinbase, when the exchange brought crypto trading to the masses.



“Ten years ago, you were able to buy cryptocurrencies, but when Coinbase came, their plan was to democratize cryptocurrencies through a beautiful UX and succeeded with that,” he said.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“This is exactly what we want to do with Nested: Democratize DeFi through simplicity.&#8221;</blockquote>



Nested makes money by charging a nominal fee on each new NFT. When users create an account, they have the option of copying an existing NFT on the marketplace — replicating its trades in the process — or starting from scratch. Traders receive a royalty payout each time their portfolio is copied.



Kadoch said the thousands of DeFi coins trading creates a bottleneck when it comes to breaking into the space.



“Current exchanges are built for [hardcore] users and not for the masses,” he said.



<hr class="wp-block-separator"/>



Correction — March 2, 2022 at 9:45 am ET: The lead investor is Alan Howard, unconnected to the European asset management firm Brevan Howard.



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DeFi Trading Platform Raises Round Led by Alan Howard in Social Investing Push

Casey Wagner

<div id="highlights-block_60dcbd11caedd" class="highlights">
 <ul>
 <li>Republic Realm, owned by crowdfunding platform Republic, launched in March 2021 as the non-fungible token (NFT) market started to heat up. </li>
 <li>Earlier this month, Republic Realm purchased nearly $1 million worth of virtual land in the blockchain-based online world Decentraland, the largest purchase of digital land in history. </li>
 </ul>
 
</div>



Galaxy Interactive, the multi-limited partner venture fund that sits under Galaxy Digital’s asset management unit, is a lead investor in virtual real estate developer Republic Realm.&nbsp;



“We are thrilled to partner with Republic Realm in their mission to expand access to virtual real estate across the major virtual worlds,” said Richard Kim, GP at Galaxy Interactive. “For us, the investment provides ‘smart beta’ to the evolving ecosystem, and the opportunity to leverage the team’s unique backgrounds and insights to intelligently assess opportunities and pitfalls across the space.”



Republic Realm, owned by crowdfunding platform Republic, launched in March 2021 as the non-fungible token (NFT) market started to <a href="https://cms.blockworks.co/nft-newsmakers-fox-tiger-king-nft-genius-and-the-world-wide-web/">heat up</a>. The size of the investment was not disclosed. The company acquires virtual real estate, digital assets and NFTs and has made more than 1,500 investments since launch.&nbsp;



Earlier this month, Republic Realm purchased nearly $1 million worth of virtual land in the blockchain-based online world <a href="https://decentraland.org/" target="_blank" rel="noreferrer noopener">Decentraland</a>, the largest purchase of digital land in history. 



The online world of Decentraland allows users to display NFT art, real estate, clothes and attend live events on purchased lots. Republic Realm develops the virtual land in the digital world to build event spaces and commercial real estate. It has even rented out digital storefronts to tenants.&nbsp;



Boston Protocol held the previous record for largest virtual real estate sale. The blockchain protocol bought a digital land plot earlier this month for $704,000. The company has said it plans to develop the space into a virtual mall where users can purchase digital assets and exchange them for real-life goods.&nbsp;



There are other groups offering NFT real estate. The Sandbox, a competitor of Decentraland, is an ethereum-based gaming world where users can create, share and monetize assets. The Sandbox recently sold a lot of land on its platform for more than $650,000. Somnium Space, another digital real estate platform, sold a plot for $500,000 in March.&nbsp;



Old names in real estate are also getting involved in the digital land ecosystem. Sotheby’s opened a virtual replica of their London auction house to host an NFT art show.&nbsp;



Real estate groups and brokers are also starting to see the value in NFT versions of real locations.



Shane Dulgeroff, a California-based broker, recently created an NFT listing of a virtual version of a home. The winning bid won both the virtual NFT and the very real home.&nbsp;



Republic’s $36 million Series A funding round closed in March. Investors included Galaxy Digital and investment firm Prosus.