Two well-known web3 founders Kelvin Wang and Davy Li have secured $2.5 million in funding for their NFT marketplace, Pallet Exchange, aimed at retaining users even during market downturns. Despite a significant decrease in NFT sales volume, the duo is confident in the potential for their platform's growth and innovation.

In this article, we will cover everything you need to know about Pallet Exchange, and why they chose to build on the Sei blockchain. We will also cover the recently launched Sei Creator Fund, a $10m grant fund for both the creation of new projects and the growth of existing NFT and Social projects on Sei. 

Fresh $2.5M Funding

Co-founders Kelvin Wang and Davy Li successfully secured $2.5 million in a private funding round, demonstrating investor confidence in the potential longevity of NFTs beyond mere social media profile pictures (PFPs). This funding round saw participation from notable entities such as Spartan Group, Symbolic Capital, and Cypher Capital, as well as angel investors associated with Coinbase, MoonPay, and others.

“Over the past few months, NFT activity on Sei has grown tremendously, and leading the charge is the team at Pallet. We are witnessing early signs of product-market fit and we expect this to grow exponentially with the launch of Sei v2. Davy and Kelvin are crypto-natives who have displayed a true understanding of building products people love and we are thrilled to be supporting them in their journey,” said Kelvin Koh, co-founder at Spartan Group.

Building a New Type of NFT Marketplace

While NFT sales volume has seen a decline, Pallet Exchange is pioneering a new approach to NFT trading, focusing on user experience and retention. Wang and Li, known for creating various web3 projects, recognized the need for improvement in the NFT marketplace space. Their platform aims to address issues such as transaction speed and user interface friction, providing a more seamless experience for both novice and experienced users.

“With the implementation of EVM parallelization, developers will be able to deploy Ethereum protocols on Sei. Our team at Pallet could not be more excited to be at the forefront of this fundamental rewriting of the underlying EVM infrastructure,” said Davy Li, co-founder at Pallet Exchange.

Innovating Amidst Market Challenges

Despite the financial challenges posed by bear markets, Pallet Exchange aims to innovate on liquidity and retention mechanisms. The platform seeks to provide users with meaningful interactions and progression within their NFT collections, incorporating social media tactics to foster community engagement. Wang and Li envision a platform that appeals to both crypto enthusiasts and regular users through gamification and social features.

Choosing the Sei Blockchain

While Ethereum, Bitcoin, and Solana dominate the NFT space, Pallet Exchange opted to build on the Sei blockchain due to its speed and low transaction costs. Sei's layer-1 blockchain boasts impressive transaction throughput, making it an attractive choice for the platform. Additionally, the creators of the Sei blockchain are actively working to attract Ethereum Virtual Machine (EVM)-based developers, further enhancing its appeal to projects like Pallet Exchange.

“This announcement sets the stage for further innovation and expansion within the Sei ecosystem as a whole. NFTs are at the heart and soul of any crypto ecosystem. On Sei, they also have an unprecedented opportunity to leverage web2-like user experiences, to reach an even broader audience than ever before,” said Jay Jog, co-founder at Sei Labs.

Impressive Growth on Sei

Despite being a newer entrant, Pallet Exchange has experienced rapid growth on the Sei blockchain. Since its launch, the platform has seen a significant increase in trading volume, driven in part by the success of Seiyans, an NFT collection inspired by meme culture. With a substantial market share on Sei and millions of users visiting the platform, Pallet Exchange is poised for further expansion.

$10M Sei Creator Fund

Since the start of the year, Pallet has seen over 2 Million unique visitors on the platform and over $20 Million of trading volume, rapidly positioning Sei as one of the fastest-growing NFT ecosystems in web3. 

Additionally, the Sei Foundation, a non-profit committed to the Sei ecosystem's growth, has launched the Sei Creator Fund, a $10m grants fund for both the creation of new projects and growth of existing NFT and Social projects on Sei. The Sei Creator Fund is designed to empower creators and builders across the spectrum of NFTs and Social: collections, applications, infrastructure, content creation, and even In-Real-Life (IRL) events. 

Future Plans

Looking ahead, Pallet Exchange aims to diversify its offerings by exploring partnerships in the art marketplace. The platform plans to create a separate marketplace for artists, providing unique experiences tailored to their needs. By catering to a variety of creators and collectors, Pallet Exchange seeks to solidify its position as a leading NFT marketplace.

Kelvin Wang and Davy Li's vision for Pallet Exchange represents a significant step forward in the evolution of NFT marketplaces. With a focus on user experience, innovation, and growth on the Sei blockchain, Pallet Exchange is poised to make waves in the ever-expanding world of NFTs.