Morgan Chittum

<div id="highlights-block_61e8977c7a3b2" class="highlights">
 <ul>
 <li>Secret Network is best known for building a non-fungible token protocol, which advertises itself as the first “NFT with programmable privacy&#8221;</li>
 <li>Investment firms that have taken a large SCRT token position include CoinFund, Alameda Research, HashKey and DeFiance Capital</li>
 </ul>
 
</div>



Secret Network will soon deploy $400 million into its network’s ecosystem from big-name investors such as CoinFund, Alameda Research and DeFiance Capital, the protocol’s developer told Blockworks on <a href="https://scrt.network/blog/secret-network-400m-ecosystem-funding-new-investors" target="_blank" rel="noreferrer noopener">Wednesday</a>.



The privacy-focused blockchain will launch a $175 million accelerator pool and $225 million ecosystem fund, according to marketing materials. The $225 million raise will come from 25 different investors and the other $175 million will be deployed directly from SCRT Labs.&nbsp;



The accelerator pool will be a source of non-dilutive early stage funding for various projects trying to build on Secret Network, according to a <a href="https://scrt.network/blog/secret-network-400m-ecosystem-funding-new-investors" target="_blank" rel="noreferrer noopener">blog post</a> from the startup. Early backers included KuCoin, Terra, DragonFly Capital, Blocktower and Huobi Capital.&nbsp;



Secret Network is best known for building a non-fungible token protocol, which advertises itself as the first “NFT with programmable privacy,” according to its <a href="https://scrt.network/" target="_blank" rel="noreferrer noopener">website.</a> Both the NFT holder and creator can lease, own, and sell the [digital] art privately.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“[Unlike] normal NFTs, we can provide [user] access control,” Guy Zyskind, the founder and CEO of Secret Network, <a href="https://cms.blockworks.co/director-quentin-tarantino-to-release-line-of-pulp-fiction-nfts/" target="_blank" rel="noreferrer noopener">previously</a> told Blockworks. “Essentially, if I’m an artist, and I’m publishing an art piece, I don’t have to reveal it to the entire world, I can publish it selectively.”</blockquote>



Secret Network previously made headlines for its partnership with award-winning director Quentin Tarantino last year, collaborating on a line of “Pulp Fiction” NFTs. Tarantino’s collection plans led to a <a href="https://cms.blockworks.co/why-the-studio-that-produced-pulp-fiction-is-suing-quentin-tarantino-over-nfts-based-on-his-screenplay/" target="_blank" rel="noreferrer noopener">lawsuit</a> from Miramax, the movie studio that produced the 1994 film.&nbsp;



Miramax accused Tarantino of committing copyright infringement, trademark infringement, breach of contract and unfair competition, according to court documents. Secret Network said in a statement to Blockworks that it has not been threatened with any legal action and still intends to work with Tarantino on his NFT efforts.



Zyskind said the $400 million will flow into the network’s ecosystem to help propel its growth. “With a strong network of supporters and a passionate global community, Secret Network is now entering its most aggressive growth phase to date,” he wrote in a <a href="https://www.businesswire.com/news/home/20220119005731/en/Secret-Network-Announces-400-Million-in-Ecosystem-Funding-Alongside-Substantial-New-Investment-from-Leading-Firms" target="_blank" rel="noreferrer noopener">statement.&nbsp;</a>



The network’s native token, SCRT,&nbsp; is currently trading 4.2% lower at $9.22 after the news, according to data provider <a href="https://www.coingecko.com/en/coins/secret" target="_blank" rel="noreferrer noopener">CoinGecko</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Funding

Secret Network Announces $400M Ecosystem Funding, Reveals Big-Name Investors

<div id="highlights-block_618020b3a79a6" class="highlights">
 <ul>
 <li>Secret Network allows users to hold the crypto assets privately, according to co-founder Guy Zyskind</li>
 <li>The initial collection is set to go to auction on NFT marketplace OpenSea</li>
 </ul>
 
</div>



Quentin Tarantino is set to release a collection of seven non-fungible tokens (NFTs), consisting of never-before-seen handwritten scripts and commentary from &#8220;Pulp Fiction&#8221;, the award-winning director announced on Tuesday.



“I’m excited to be presenting these exclusive scenes from &#8216;<a href="https://www.imdb.com/title/tt0110912/">Pulp Fiction</a>&#8216; to fans,” Tarantino said in a statement to Blockworks.&nbsp;The original film, which garnered roughly $214 million at the box office, led Tarantino to take home the Oscar for Best Screenplay in 1994.&nbsp;&nbsp;



The collection will run on Secret Network’s blockchain, which allows both the creator and NFT holder to own, lease and sell said art privately, co-founder of <a href="https://scrt.network/about/secret-nfts">Secret Network</a> Guy Zyskind told Blockworks.&nbsp;



“If the whole idea of Secret NFTs is that I can share something specifically with those who purchase it, then I want to share something that is extremely valuable to me, extremely valuable in pop culture, and something that has never been seen before,” he said, citing conversations with Tarantino about the project.&nbsp;



“What is something truly iconic? What is something that is very, very close to his heart, very, very close to his fans, historic in terms of pop culture significance? And then [Tarantino] came up with the idea,” Zyskind said.&nbsp;“[Tarantino] said, ‘Look, I have the original handwritten &#8216;Pulp Fiction&#8217; script. I&#8217;ve never shared it with anyone.’”



Secret NFTs contain content only viewable by the owner of the asset itself — and ownership does not have to be made public.&nbsp;



“[Unlike] normal NFTs, we can provide [user] access control,”&nbsp; Zyskind added. “Essentially, if I&#8217;m an artist, and I&#8217;m publishing an art piece, I don&#8217;t have to reveal it to the entire world, I can publish it selectively.”



Privacy and access controls like Secret’s are game-changers for <a href="https://cms.blockworks.co/the-investors-guide-to-nfts/" target="_blank" rel="noreferrer noopener">NFT</a>s, according to Zyskind. “NFTs could be the most disruptive technology to come out of this decade,” he said. “The art community is alive with innovation and the media is actively exploring all the potential use cases associated with the technology. Now, we have privacy and access controls courtesy of Secret Network. Ultimately, that will enable a whole litany of new potential use cases.”



The &#8220;Pulp Fiction&#8221; NFT collection is set to go to auction on OpenSea, but an official date has yet to be announced.

Secret NFTs

Newsletter

Blockworks Research