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Coinbase, Andreessen Horowitz, Ashton Kutcher, Snoop Dogg Back DAO Creator Syndicate: What You Should Know

One of the growing trends in the NFT market is the strengthening the community and valuation of a project with future airdrops and exclusive items for holders. One area of growing interest: DAOs, or decentralized autonomous organizations.

Benzinga · 09/01/2021 11:16

One of the growing trends in the NFT market is the strengthening the community and valuation of a project with future airdrops and exclusive items for holders.

One area of growing interest: DAOs, or decentralized autonomous organizations.

A company looking to grow DAOs has raised $20 million from an impressive roster of investors.

What Happened: Instant DAO creator Syndicate raised $20 million in a recent funding round. The company has a goal of allowing anyone to set up an investment community.

The company’s Series A funding round was led by well-known investment group Andreessen Horowitz.

The investors in the round include Bill Ackman’s Table Management, Coinbase Global (NASDAQ:COIN), Ashton Kutcher and Snoop Dogg.

“Syndicate is creating a decentralized investing protocol that enables anyone to create an investment syndicate on the internet for less than $10 in less than a minute,” cofounder Ian Lee said.

Syndicate is seeking to simplify the process to create a DAO and lower the amount of money needed to set up a DAO.

The company can also offer legal components and infrastructure if the customer seeks to become an investment fund.

Funds from the investment round will be used to build out infrastructure for Syndicate, integrate with Web3 projects and for community support.

Among the customers of Syndicate are CityDAO, which is seeking to democratize access to land through DAOs.

Related Link: CryptoPunks Are Worth How Much? AssetDash Is Tracking NFT Market Caps 

Why It’s Important: DAOs are a way to engage the community of a NFT project. DAOs have no hierarchy, with participants using the entity’s governance tokens to vote.

“Syndicate could potentially do to investing what YouTube did to film, or what SoundCloud and Spotify did to the music recording industry,” Lee said.

One of the top NFT projects and a huge valuation gainer has been PUNKS Comic launched by Pixel Vault. In May, a person could mint a PUNKS for 0.2 Ethereum (CRYPTO: ETH), or around $720 at the time.

Pixel Vault has increased value for its owners by offering a Founder’s DAO if they “burn the comic.”

DAOs could become a growing trend in the NFT market as projects look to differentiate themselves and offer value to their community. Syndicate and its large named backers could become a big player in the segment.