OpenSea is a trading platform for non-fungible tokens. 

It was founded on December 20, 2017, by Devin Finzer and Alex Atallah in New York City. OpenSea platform allows you to sell, buy and create your own NFT tokens. 

The platform operates on the principles of a decentralized community: cryptocurrency wallets, addresses and assets are controlled by users. The marketplace protocol supports Ethereum, Polygon and Klaytn Blockchain. The trading volume of NFTs increased 400-fold in 2021. 

A record number of transactions (more than $12.5 billion) were made through the NFT OpenSea Marketplace.

OpenSea online platform

OpenSea is an online platform that deals with the trading of digital assets, including NFTs (Non-Fungible Tokens), and provides users with the ability to buy, sell, and participate in auctions on the platform.

OpenSea offers a wide range of NFTs, including digital artworks, collectible cards, virtual lands, and much more. The platform enables users to create and list their own NFTs and also engage in auctions and trading with other participants.

In 2021, OpenSea received significant attention and investments from well-known venture capital funds and investors. The company secured significant investment in its Series B funding round, resulting in a valuation of several billion dollars.

OpenSea continues to evolve and innovate in the field of blockchain technology and NFTs. The team actively works on expanding the platform's functionality, enhancing the user experience, and building partnerships with various artists, content creators, and brands.

The founders of OpenSea are focused on the company's development and the growth of the global NFT market. Their goal is to create a convenient and accessible platform for trading and exchanging digital assets, contributing to the growth and advancement of the NFT industry.

Why is the OpenSea platform so popular?

• The diversity of NFTs: OpenSea offers a wide selection of various digital assets, such as art, collectibles, virtual lands, and more. This attracts different categories of users.
• Initial advantage: OpenSea was one of the first platforms for NFT trading, which helped it become a leader in this field and attract a large number of users.
• Ease of use: The OpenSea platform has a simple and intuitive interface, making NFT trading accessible for everyone, including beginners.
• Trust and security: OpenSea has a good reputation and has received support from renowned investors. It also ensures the security and protection of users' interests.
• Community support: OpenSea is the largest NFT trading platform and has a large user base and community of artists.

History of success

The founders of OpenSea achieved instant success. OpenSea was created in 2017 by two friends, Devin Finzer and Alex Atallah. Interestingly, their project had a different name (Wificoin) and operated in a completely different sphere. Users could earn tokens by providing access to their Wi-Fi networks. These earned coins could then be used to connect to other participants' networks.

The promising project became a part of the Y Combinator business accelerator. However, the market saw the emergence of the first successful NFT project, CryptoKitties, a popular blockchain game that laid the foundation for the future success of the NFT industry. In CryptoKitties, users could breed and raise new pet cats represented as ERC-721 NFT tokens. This eventually became the standard for many projects.

At this time, the relatively new NFT industry was beginning to expand, and Finzer and Atallah recognised its potential. After some consideration, they decided to completely reformat the Wificoin project and focus their attention on the NFT market.

As time has shown, Finzer and Atallah made one of the best decisions of their careers. Having said this, success was not guaranteed as many entrepreneurs began flooding the booming NFT market, including Rare Bits, which started its development at the same time.

OpenSea immediately set a global goal to create the most efficient service for buying and selling tokenized objects. Illustrating the competition: both teams referred to their developments as the "new eBay for crypto goods."

Initially, Rare Bits was able to attract more investor interest, securing $6 million in venture capital, while OpenSea had only $2 million in investments.

Despite similar objectives, the business models of the two teams differed significantly:

Rare Bits aimed to provide users with the widest range of gaming NFTs. Some transactions on the platform had no fees, and users' costs for transaction fees on the Ethereum network were compensated.

On the other hand, OpenSea focused on developing functionality without attempting to sell every NFT available. The platform also implemented a 1% transaction fee on trades made through the platform. This approach allowed OpenSea to survive during the global downturn in the cryptocurrency market that occurred in 2018. Competitors were unable to diversify their costs, and by 2019, Rare Bits ceased to exist.

At that time, Devin Finzer commented on the victory over the competitor:

“We were able to outperform Rare Bits because we thought long-term from the very beginning, not paying attention to short-term trends. We wanted to build a full-fledged decentralized NFT marketplace, and then dream of scaling the business.”

The NFT boom that unfolded throughout 2021 helped OpenSea become the first unicorn company in the emerging market. In March 2020, the platform generated around $30,000 per month from fees, but just a year later, the numbers were in the millions of dollars. During the summer of 2020, analysts at Andreessen Horowitz valued OpenSea at $1.5 billion, and in January, after closing an investment round with $300 million, the company's valuation exceeded $13.3 billion.

Competitors

1. Nifty Gateway - This platform focuses on attracting well-known artists and brands to create and sell NFTs. They also offer an intuitive interface and tools for buying and selling digital assets.

2. SuperRare - SuperRare is a platform specializing in trading exclusive and high-quality NFTs created by artists. It aims to attract collectors and investors interested in unique and limited edition NFTs.

3. Rarible - Rarible is another popular platform for creating, selling, and purchasing NFTs. It also operates on the Ethereum blockchain and offers various tools for creating and acquiring unique digital assets.

4. Foundation - Foundation is a platform for creative individuals where they can create, sell, and buy their own NFTs. The platform primarily focuses on art and design and aims to provide artists with an opportunity to distribute their work and interact with their fans.

5. Mintable - Mintable is another platform that allows users to create, sell, and buy digital assets on the Ethereum blockchain. They also offer additional features, such as the ability to add interactive elements to NFTs.

OpenSea's strengths

• Ease of creating and listing new tokens. Simply register an account and upload a file to get started.
• Wide selection of assets divided into 8 categories: collectible tokens, art, music, virtual worlds, domain names, sports, cards, and utilities.
• Convenient tool for finding the rarest NFTs. Just select a collection and apply filters based on keywords. For example, for CryptoPunks, keywords could include "cigarette," "red hair," "green skin," and more.

How did the crypto winter affect OpenSea's work?

According to CoinGecko, 2022 was one of the worst years in the history of the cryptocurrency market, and this trend affected the trading of non-fungible tokens (NFTs).

As analyzed by The Block, in June 2022, the total trading volume of NFTs decreased by 74%, reaching $1.04 billion, representing a significant drop compared to $4 billion in May 2021. The analytical platform Dune reported an even lower figure for the same period, with only $0.5 billion in trading volume.

However, The Block's data showed that two-thirds of the total transaction volume is accounted for by OpenSea, which allowed it to maintain its leading position as a trading platform in the NFT market.

As a result of the decline in activity, the project's team announced a 20% reduction in staff in July 2022.

OpenSea actively seeks feedback from users and strives to address any identified shortcomings promptly, and continuously works on its development and improvement. 

Features of venture investments

• The average duration of an investor's stay in a project is about five years. This period is unpredictable and cannot be predetermined.
• You can invest in a deal at any time as long as it is available on the Marketplace and is not Sold Out.
• An 'exit' from a transaction is possible only after the company's shares are listed on the stock exchange for trading.
• Venture investments are generally high-risk, but also highly profitable if the shares are successfully listed on the stock exchange.
   

— What is Pre-IPO?
Pre-IPO (Pre-Initial Public Offering) refers to investing in a company at a late stage of its development before its shares are listed on a public exchange. Investors gain access to the business well ahead of the IPO or an M&A transaction, typically at a valuation lower than the eventual public market price.

— How is Pre-IPO different from IPO?
At IPO, shares immediately trade on the stock exchange and become liquid. Pre-IPO is a venture-stage investment: shares are not yet publicly traded, and the holding period is usually 1–5 years until the company goes public.

— Why do companies raise capital at the Pre-IPO stage?
They seek additional funding to accelerate growth prior to a listing, strengthen their balance sheet, expand product lines, or enter new markets.

— How is share price and valuation determined at Pre-IPO?
Pricing is based on the company’s financing rounds (Series C, Series D, etc.) and valuations set by venture capital firms and institutional investors. On a marketplace, pricing may either follow the latest round or reflect average levels from secondary market transactions.

— How can I participate in Pre-IPO via Regolith?
You select a company on the platform and submit an application. Your investment is allocated into the corresponding trust series linked to that Pre-IPO, making you a beneficiary of that series.

— How is the transaction structured legally?
The investor transfers funds and signs a set of agreements (subscription/participation agreement, trust series joinder, etc.). Shares are held by the trust, while the investor is recognized as its beneficiary.

— Where are the shares recorded if I invest through the platform?
Shares are held within the trust structure. The trust is the legal owner, and you are the beneficiary of the respective series.

— How is my participation and ownership confirmed?
Your personal account provides access to key documents: the series participation agreement, trust declaration, and asset specification. These confirm your beneficiary status.

— Can I verify that Regolith actually participates in the deal?
Yes. Your account contains supporting documents for each trust series, detailing the deal structure and ownership arrangements.

— What is the minimum investment amount?
The minimum is shown on each deal page. On average, it ranges from $150 to $850 depending on the company.

— What is the typical investment horizon?
Generally 12–36 months, until IPO or M&A. The exact timing cannot be predetermined.

— When and how can I exit the investment?
Exit is only possible at a liquidity event — IPO or strategic sale (M&A). At that point, shares are sold and proceeds distributed to investors.

— What fees apply?
• Entry fee: 5% at the time of purchase
• Exit fee: 20% of profit (success fee)
• No management or exit-only fees apply

— Do I receive dividends before IPO?
No. Most Pre-IPO companies reinvest profits into growth. Investor returns are realized solely through capital appreciation at IPO or sale.

— What risks are involved in Pre-IPO investments?
Pre-IPO is a venture-stage asset class. Key risks include:
• IPO delay or cancellation
• Downward revision of valuation
• Low liquidity on the secondary market
• Market-wide or macroeconomic downturns

— Can I know in advance how much I will earn?
No. Returns depend on valuation at IPO/M&A and market conditions. Potential upside can be 2–5x, but there is also risk of capital loss.

— What if the IPO is postponed or cancelled?
You remain a shareholder. In case of cancellation, exit may still occur via strategic sale (M&A) or by holding shares until a future listing.

— What if the valuation declines?
Returns may be significantly below expectations, or the investment may result in a loss.

— What if the company goes bankrupt?
Pre-IPO is a high-risk venture investment. In the event of bankruptcy, capital may be lost entirely as shares become worthless.

— How likely is a successful IPO?
Venture statistics show that on average, only 1 in 10 companies reaches IPO or strategic sale. Many remain private or cease operations. This dynamic explains both the potential for outsized returns and the elevated risk profile.

— Examples of Pre-IPO value growth

SpaceX
In 2022–2023, SpaceX shares on the private market were available around $60 each. By 2025, secondary market prices reached $237 — a ~4x increase (+295%). Importantly, SpaceX has not yet conducted an IPO, leaving further potential upside.

Circle (USDC issuer)
In Dec 2024, Circle shares traded at $24. By June 2025, its IPO priced at $31, and shares surged to $123 on day one, later peaking at $290. As of Sep 2025, they trade near $131. From $24 to $131, that’s +446% (over 5x).

Example with Regolith fees
An investor placing $100,000 at $24 per share would have received ~4,166 shares. Selling at $123 yields ~$512,000 (+412% gross). After 5% entry fee ($5,000) and 20% success fee ($82,484), net proceeds would be ~$425,000 (+325%).

These examples illustrate how the Pre-IPO model works: share prices can multiply, but actual results depend on the specific company, entry timing, and overall market conditions. It is important to understand that even late-stage investments — including Pre-IPO — remain venture in nature: companies may encounter challenges, postpone or cancel an IPO, or in some cases fail altogether. Even after going public, shares may underperform expectations and fall below the purchase price.

When making investment decisions, carefully weigh risks and potential returns, and diversify your portfolio across different instruments to mitigate possible losses. Remember: the final decision to invest always rests with you.

We wish you thoughtful decisions, successful deals, and a portfolio that rewards you with steady growth 📈