“The world of finance is rapidly changing and nowhere is that more apparent than what we are seeing with the emergence of Web3, the Metaverse and NFTs”
Mogo Inc. has acquired a stake in NFT Trader, a Canadian company that operates a secure peer-to-peer OTC trading protocol for non-fungible tokens or NFTs, as part of its deep dive into the blockchain space.
NFT Trader has made a name for itself in the NFT segment by collaborating with many popular projects, including Bored Ape Yacht Club, Cool Cats, Gutter Cat Gang, and CyberKongz.
NFTs rose to prominence in 2021 with the establishment of several trading platforms across the globe looking to make the technology mainstream, thus allowing creators to keep a digital record of ownership, which can be passed on to buyers.
Mogo acquires 25% + option of 25% more
Mogo’s initial investment is through a convertible note which, if converted, will represent a 25% interest in NFT Trader. The company has an option to acquire an additional 25% interest through a secondary purchase of common shares from the founders within six months of the initial investment.
Mogo is entitled to appoint one director to NFT Trader’s board of directors and has been granted a pro-rata right for any future offerings of securities by NFT Trader, along with a right of first refusal over any transfers of securities by NFT Trader’s founders.
In addition to supporting the company’s continued growth, over time Mogo expects to work with NFT Trader in navigating the Canadian regulatory landscape exploring a strategic partnership to bring NFT Trader to Mogo’s members in Canada.
Mogo’s growing portfolio of digital assets and investments totaled approximately $150 million1 at the end of Q3 2021 (including Mogo’s book value of its investments in Coinsquare).
David Feller, Chief Executive Officer of Mogo, said: “The world of finance is rapidly changing and nowhere is that more apparent than what we are seeing with the emergence of Web3, the Metaverse and NFTs.
“Trading volume for NFTs in 2020 was estimated at less than $100M and that grew an estimated 230 times last year to over $23 billion USD. This is also clearly just the beginning as we’re just starting to see a whole new crop of play to earn video games where players are rewarded in native crypto currency and where their characters are NFTs that can be traded.
“Gaming will become a key way millions onboard into crypto, and the ability for consumers to easily trade NFTs alongside crypto will become increasingly important. We believe that a next-gen financial platform will not only bridge the gap between traditional finance and DeFi, but the merging of the digital and physical worlds will become one of the biggest growth opportunities ever.”
Mogo goes commission-free
Mogo has recently launched its commission-free trading app, MogoTrade, which will be introduced to customers in a phased rollout.
The stock trading app is meant to set a new bar for commission-free trading in Canada. Available on the App Store and on Google Play, MogoTrade provides free real-time streaming quotes, but access to the commission-free trading feature will be gradual from Q1 2022 onwards.
Select Mogo members will be able to trade immediately and others will be added to the waitlist for access to the commission-free trading feature. Canadian residents should download the MogoTrade app on iOS or Android to get on the list to receive an invite.
MogoTrade is the new stock trading app charging no commissions and targets Mogo’s nearly 1.8 million members by default, although all Canadian residents are welcomed to join.