Hackers and cybercriminals have escalated their attacks within the decentralized finance (DeFi) and NFT space in the past few months, attracting many security firms to take precautionary moves to mitigate these cyber attacks.
Tokenproof, a non-fungible token (NFT) security startup, is the latest perfect example, raising $5 million in a seed funding round to mitigate the scourge of scams recently draining digital collectibles.
In an August 30 press release, the NFT security startup confirmed the successful completion of its seed funding round, which has raised $5 million. The seed funding round was spearheaded by venture capital Penney Jar.
Tokenproof Raises $5M To Boost NFT Security
The funding initiative also saw the participation of notable capital ventures, including Corazon Capital, 6th Man Ventures, Canonical Crypto, and several business moguls such as Sebastien Borget, Mark Cuban, Keith Grossman, and Patricio Worthalter.
Tokenproof anticipates using the secured capital to establish a security framework that will allow all NFT holders to prove their Bored Ape Yacht Club NFT collections without putting the high-value NFT at risk.
In a recent short interview, Alfonso Olvera, the CEO of Tokenproof, explained that every new integration comes with loopholes for exploitation from phishers and scammers, targeting to drain digital wallets. He asserts that users may often put their NFTs and other valuable digital assets at risk when connecting their wallets to the outside world.
More Firms Take Safety Measures To Secure Their NFTs
A series of threats and attacks on the NFT communities, such as the Bored Ape Yacht Club (BAYC) in June, has attracted more firms with NFT integrations to double down their security. Earlier this month, metaverse game company Sandbox announced the acquisition of BrandShield security firm to boost its security.
The Sandbox anticipates leveraging the BrandShield security capabilities to protect its user from NFT phishing scams, which according to a recent Elliptic report, have totaled over $100 million since last year.
Tokenproof will use the secured funds to create a unique identity verification mechanism that will hold the actual NFT in safe storage, beyond the reach of cybercriminals. The new functionality will allow users to prove they own the NFT to unlock more other associated benefits.
According to Olvera, Tokenproof aims to reduce the risk facing NFT holders while unlocking the utility of their digital collectibles in the real world. Olvera asserted that although opportunities within the NFT industry are increasing, scam risks are also growing proportionally against it.
Tamadoge is an example of an NFT and Metaverse-related platform, which might greatly benefit from rolling out of the new NFT functionality. Tamadoge is currently one of the best-selling NFT platforms and has raised more than $9.5 million from its token presale.
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