Technology giant eBay has swooped to acquire Manchester-based NFT marketplace KnownOrigin.
Launched out of a basement in 2018, KnownOrigin enables artists and collectors to create, buy and resell non-fungible tokens via blockchain-support transactions.
KnownOrigin was one of the first NFT art platforms to launch. It showcases and sells digital artwork in the same way as physical pieces.
Built on the Ethereum blockchain, it also serves as a direct link between artists and the NFT space.
It facilitates purchases via its smart contract platform and protocol, allowing the artist to receive instant remuneration. In addition to buying at the asking price, users can bid on artworks, while artists can also control pricing models and gift NFTs.
KnownOrigin has also worked with brands such as Adobe, Adidas and Netflix and developed a royalties system that allows artists to earn money through secondary sales.
Revealing a £3.3 million funding round in February, it said the platform had generated more than £20m in the previous 12 months and seen a tenfold increase in unique collectors and creators.
eBay, which has allowed the buying and selling of NFTs since May 2021, said the acquisition was an important step in its tech-led reimagination – ‘ushering in a new era of digital collecting to the world’s top destination for collectibles’.
“eBay is the first stop for people across the globe who are searching for that perfect, hard-to-find, or unique addition to their collection and, with this acquisition, we will remain a leading site as our community is increasingly adding digital collectibles,” said Jamie Iannone, CEO.
“KnownOrigin has built up an impressive, passionate and loyal group of artists and collectors making them a perfect addition to our community of sellers and buyers. We look forward to welcoming these innovators as they join the eBay community.”
David Moore, who co-founded KnownOrigin with Andy Gray, said: “As interest in NFTs continues to grow, we believe now is the perfect time for us to partner with a company that has the reach and experience of eBay. With more than 25 years building similar communities of passionate individuals, we are excited by the opportunity to bring a whole new audience on this journey.
“This is the start of a new chapter in the KnownOrigin story and we couldn’t choose a better time to focus on building and innovating with the team at eBay. This partnership will help us attract a new wave of NFT creators and collectors.”
However the reaction on social media was far from positive.
In response to a seven-tweet thread posted by the company which announced the deal, many people criticised the startup for selling out to a corporate company.
@MightyMooseART said: “Will probably be burning all my unsold work. I’m not here to support the eBay’s of the world. We were supposed to be building something different. I’m really sad.”
@barabeke added: “I used you for my 1/1s because I liked your philosophy. Now that you are going corporate there is definitely never going to be any spotlight for me, and perhaps no place… Congrats for the achievement anyway, and I mean it. Great job.”
However the company’s thread had garnered approaching 2,000 likes at the time of writing.