How to Buy OpenSea Stock
OpenSea is the top NFT marketplace right now. If you're looking to get in on it and buy shares of the company, here's all you need to know.
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OpenSea is the biggest name in the game when it comes to NFT marketplaces. With blockchain technology, you can buy and sell digital assets. These include video game items, collectibles, and virtual goods.
In January 2022, OpenSea was valued at $13.3 billion and is widely considered to be the top NFT marketplace. So, how do you invest in the company? Here's a quick guide on how to buy OpenSea stock.
Invest in High-Growth Startups
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- Diversify Your Portfolio with High Growth Startups
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Can You Buy OpenSea Stock?
Since OpenSea is still a private company, you can't buy OpenSea stock yet. It isn't listed on any stock exchange and only accredited investors and financial firms can invest in it right now.
But you can explore a few other options, like pre-IPO investment and alternative stocks.
OpenSea is an NFT marketplace where you can buy, sell, and trade digital assets. Think of it like the Amazon or eBay of NFTs. They charge a 2.5% fee on sales, which is one of the lowest in the industry.[1]
How to Buy OpenSea Before the IPO Date
If you're an accredited investor, you can try secondary platforms. They serve as platforms for early investors to sell their shares, allowing accredited investors to purchase them.
Currently, there are no reports of OpenSea being sold in secondary platforms. To see the stock availability, check out trading websites or apps.
Here are simple steps to access secondary platforms.
- Sign up online with your chosen platform (Example: Equitybee)
- Undergo verification of your accreditation
- Once verified, you can browse available offerings
- Fund your account and buy shares
Note that requirements may differ among platforms. Minimum investments can also get pretty hefty. For example, Equitybee requires a $10,000 minimum.[2]
Invest in High-Growth Startups
- Access Hundreds of Startups at Past Valuations
- Diversify Your Portfolio with High Growth Startups
- Invest in a Previously Inaccessible Asset Class
Accredited investors are individuals classified by the SEC as qualified to invest in complex or sophisticated types of securities. Requirements include having an average yearly income of $200k or working in the financial industry.[3]
How to Indirectly Invest in OpenSea Stock
Right now, OpenSea stock has no publicly available indirect investments. Most of its investors are also privately held.
As the leading platform in the NFT industry, an IPO may not be expected in the near future. But you can always get ready in case they ever go public.
OpenSea doesn't have a stock price yet because it's not a public company. This means that people can't buy or sell shares of OpenSea. When OpenSea goes public, it will get a stock price.
How to Invest in OpenSea's IPO
If OpenSea opens for IPO, here are the steps you can take to buy shares:
- Open a brokerage account
- Meet the eligibility requirements of the IPO
- Request the shares from your broker
- Place the order
IPO trading is available through some brokers, such as Robinhood and SoFi.
Non-fungible tokens (NFTs) are 1-of-1 digital assets like art, music, videos, or collectibles. They have special codes within them that prove they're yours and yours alone. They're stored on a blockchain, making them secure and easy to trade.
Why invest in OpenSea?
Investing in OpenSea offers several potential advantages.
- It's the biggest NFT marketplace
OpenSea has over 1 million registered users, so there's a lot of activity and potential for investors. - It's profitable
OpenSea collected over $1.8 billion in fees in 2022 and earned over $571 million in revenue. - It has a good revenue model
OpenSea generates its revenue primarily through transaction fees, charging a 2.5% fee for each transaction. In addition to transaction fees, OpenSea also derives income from listing fees, seller and buyer fees, and premium services. - It gives a fair share of the profits to creators
NFT creators love OpenSea because they get most of the fees when they sell their NFTs on the platform. This means that OpenSea is a good place to invest if you want to support NFT creators.
These are some of the reasons why you should consider buying OpenSea shares. But before you do, you should be aware of some of the risks.
OpenSea was created in 2017 by Devin Finzer and Alex Atallah, who saw the potential of NFTs and wanted to make it easy for people to buy and sell them. They wanted to create a decentralized marketplace, meaning that it would not be controlled by a central authority.
Risks in buying OpenSea Stock
Here are some of the risks to consider before investing in OpenSea:
- The market is new and volatile
The NFT market is still in its early stages, so it's important to be prepared for price swings and volatility. - Market competition
There are other rising NFT marketplaces like Blur. They are also quickly growing in profit and have recently overtaken OpenSea in trade volume. - Regulatory changes
NFT regulations are still changing, so it's important to stay informed. New taxes, trading restrictions, and intellectual property rights changes could affect your investment.
What is OpenSea's Valuation?
OpenSea was valued at $13.3 billion in 2022 after raising $300 million in funding from investors like Coatue and Paradigm.
But in April 2023, Tiger Global, one of its biggest investors, devalued the company by 76%. Now, they think it's only worth $3 billion. This is a big setback for OpenSea, facing declining NFT sales and competition from rival platform Blur.
OpenSea plans to use the money it raised to improve customer safety and support, develop new products, invest in the Web 3.0 community, and expand its team. But it's unclear if this will be enough to help it stay ahead of the competition.
If you're having second thoughts about OpenSea, there are other options to check out like Blur or Rarible.
What are the Alternatives to OpenSea Stock
Here are a few other NFT marketplaces you might want to try:
- Blur
Blur takes user privacy and anonymity seriously. It has advanced security measures and encryption protocols to keep your identity and transactions confidential.[4] This is a big plus for investors who value their privacy when trading NFTs. - Rarible
Investors who hold RARI tokens can participate in governance decisions regarding platform updates and fee structures. This community feature can give investors a sense of ownership and influence over the platform's direction. - SuperRare
SuperRare is a place where you can buy and sell rare digital art. They focus on high-quality, limited-edition NFTs and helping artists connect with collectors. Their curation process makes the experience more exclusive and selective. This sets them apart from OpenSea, which is a more general marketplace.
Bottom Line
While OpenSea is not currently a publicly traded company, there are alternative investment options that provide exposure to the NFT market and potentially OpenSea-related opportunities. You can also opt for pre-IPO whenever shares are available in secondary markets.
Invest in High-Growth Startups
- Access Hundreds of Startups at Past Valuations
- Diversify Your Portfolio with High Growth Startups
- Invest in a Previously Inaccessible Asset Class
But invest wisely in the NFT market by researching, consulting experts, and aligning investments with financial goals and risk tolerance. Exercise caution and stay informed.
References
- ^ OpenSea. What fees do I pay on OpenSea?, Retrieved 10/22/2023
- ^ Equitybee. The investment process, Retrieved 10/22/2023
- ^ U.S Securities and Exchange Commission. Accredited Investor, Retrieved 09/25/2023
- ^ Blur NFT Market. How to safeguard your privacy while using blur.io: Useful tips and techniques, Retrieved 11/14/23
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