The startup, which operated under the New York-based incubator IAC until January 2022, has now received its initial round of capital.
The investment has come from a number of venture capital firms, including Digital Currency Group, FBG Capital, CMS Holdings, LD Capital, Cadenza Ventures, Matrixport Ventures and Sterling Select Group.
Instead of offering cash jackpots for customers who are successful in winning their wagers, Stakes offers non-fungible tokens (NFTs), which can be traded with other users of the platform.
Similar to a social media-style newsfeed, players can wager in groups of friends and family, with competitions added to their profile.
Stakes CEO and Founder Kevin Wang commented: “Digital sports betting increasingly feels like maths homework, devoid of the emotion, energy and sense of community that motivates fans, especially this new generation of sports lovers.
“Stakes re-imagines sports betting for the 21st century by using NFTs as rewards. We combine social media, gaming and crypto to tap into what sports fans are truly after: friendly competition, showing off knowledge and earning bragging rights. NFTs are a unique way to achieve this.”
Digital Currency Group Director of Investments Rumi Morales added: “The intersection of crypto and sports is only just beginning. Stakes is defining a Web3 way of engaging with sports through a new category of NFTs, with sentimental value capturing fandom to inspire the next generation of sports fans.”
