Published on: 22/06/2022
Crypto exchange Uniswap acquires NFT marketplace aggregator Genie
Growing cryptocurrency exchange Uniswap recently announced that the company acquired Genie, an NFT marketplace aggregator, on June 21.
The acquisition was the company’s latest significant move after entering the market in 2019 with the launch of Unisocks. At the same time, the company, which focuses on DeFi apps, has begun integrating APIs and widgets to ensure a smooth introduction of NFTs products to its website.
“In pursuit of our mission to unlock universal ownership and exchange, today we’re expanding our products to include both ERC-20s and NFTs,” Uniswap said.
“We’re excited to announce that we’ve acquired Genie, the first NFT marketplace aggregator, which lets anyone discover and trade NFTs across most platforms.”
2022 has been rough for crypto and NFTs enthusiasts with the declining trends in trade volumes and many other aspects. Nevertheless, big names and startup companies are continuously flocking into the limping industry, with several initiatives launched this year.
Uniswap is one of the companies that are brave enough to dive deep into the market.
The startup crypto exchange managed to secure millions of funding for its growth by successfully captivating Silicon Valley venture capital firm Andreessen Horowitz and investment firm Paradigm.
“We’re excited to bring what we’ve learned building DeFi products to NFTs,” Uniswap added.
The success led to the acquisition of Genie, which was purchased for an undisclosed amount. It is expected the move would help diversify the NFT marketplace. OpenSea is currently leading the sector.
The team behind Uniswap has also shared what the company planned to do after the acquisition. According to a spokesperson, the company will launch a Uniswap NFT vertical into its platform.
“NFTs will be integrated into our products, starting with the Uniswap web app, where soon you’ll be able to buy and sell NFTs across all major marketplaces,” Uniswap wrote.
“We’ll also integrate NFTs into our developer APIs and widgets, making Uniswap a comprehensive platform for users and builders in web3.”
Specifically for Genie and its users, Uniswap said the company will be launching USDC airdrop in August as a way to share “some of the value” with Genie’s historical users.
The move is in line with how both entities function in the market. Genie offers users access to a library of NFT available across multiple marketplaces, ensuring efficiency in trading.
Genie also allows users to batch buy NFTs through major marketplaces and save up to 40 percent on gas fees. Uniswap will likely combine Genie’s features with its own.
Aiming for growth despite NFT industry’s declining value
Uniswap will face fierce competition in the NFT marketplace despite the sector’s declining value. Marketplace leader OpenSea, for example, has demonstrated continuously better performance than competitors such as LooksRare and Magic Eden, whose valuations are declining in market share.
The total transaction volume of the crypto market has seen better days. A DeppRadar report shows that the transaction volume in the past months has dropped by more than 66 percent.
Whether it was the right decision for Uniswap to acquire Genie remains to be seen. Nevertheless, GameFi and game-related NFTs have shown signs of recovery, as per DappRadar and BGA Games Report #5.