Web3 Startup PROOF Raises $10m From Seven Seven Six

PROOF, the Web3 media startup which recently launched the Moonbirds Ethereum NFT series, has successfully raised $10 million in funding from Seven Seven Six, a venture capital firm led by Reddit's Alexis Ohanian.

Following the success of the Moonbirds Ethereum NFT launch which debuted with a whopping $290 million worth of sales in just four days, PROOF has announced that it has closed an investment round led by Seven Seven Six. According to PROOF, it plans to release additional NFTs and create Web3 content, with a live conference planned out for 2023.

Founded by venture capitalist and Digg co-founder Kevin Rose, PROOF is positioning itself as a premier media startup aimed at crypto and Web3 audiences, envisioning itself as the "podcast for in-depth NFT coverage". The media platform has since evolved into a private community composed of 1,000 individuals granted access into the "PROOF Collective" through NFT access passes, unlocking premium benefits and perks, as well as access to exclusive events and NFT drops.

The PROOF Collective NFTs which grant access and membership to the collective were sold starting at 5 ETH per piece, with its current value now going at a floor price of 115 ETH, or roughly $340,000 on the secondary market. PROOF's most recent Moonbirds Ethereum NFT collection has since garnered over $446 million worth of trading volume.

The investment comes in as controversy about PROOF's management side brews, following the departure of PROOF co-founder and ex-COO Ryan Carson, who announced the launch of 121G, a separate NFT investment fund.

"I had an internal policy not to purchase any Moonbirds until after rarity counts were out to the public. I can't control someone clicking a button to purchase, but I can put stronger controls in place for all future drops. e.g., no employee purchases for 7-days," Rose clarified on the matter of Carson's departure.

I had an internal policy not to purchase any moonbirds until after rarity counts were out to the public. I can't control someone clicking a button to purchase, but I can put stronger controls in place for all future drops. e.g., no employee purchases for 7-days.

— KΞVIN R◎SE (🪹,🦉) (@kevinrose) April 25, 2022

The controversy closes in on the fact that the fund started buying up Moonbirds NFTs as soon as they hit the secondary market, a possible insider trading scheme which has yet to be proven. Notably, PROOF has also been subjected to criticism regarding the fact that it has allegedly given out Moonbirds NFTs to celebrities such as comedian Jimmy Fallon, who failed to answer a prompt question over how he acquired the NFTs.

The current crypto and NFT markets are hotbeds of controversy, with many investors and crypto enthusiasts accusing projects of being scams or running Ponzi schemes. While there is no denying that some projects are indeed scams, it is important to remember that not all projects in the crypto and NFT space are out to cheat investors. PROOF, on the one hand, seems to be a legitimate project with a clear vision and purpose. With the recent investment from Seven Seven Six, it will be interesting to see how PROOF develops and establishes its legitimacy in the coming phase of NFT growth.

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