BUD Metaverse App Looks Legit, NFT Investments Will Still Be Risky
Singaporean metaverse ecosystem BUD boasts funding and an upcoming NFT line. Is the BUD app legit? Here's what investors can expect.
May 23 2022, Published 10:18 a.m. ET
Metaverse app BUD is chasing the heels of Web 3.0 and preparing for growth. The Singaporean company will be forging ahead with a hefty sum in its pocket thanks to another lucrative funding round by major investors. The company looks as legit as a metaverse can get at this point in time, but that doesn’t mean its in-app transactions and non-fungible token (NFT) investments will be risk-free.
Here’s the background on the BUD metaverse app and what users should look out for as the platform (and others like it) evolves.
BUD has scored another funding round to propel its metaverse vision.
BUD, founded by former Snap Inc. (SNAP) engineers Risa Feng and Shawn Lin in 2019, secured a $37 million Series B funding round on May 23. Sequoia Capital India led the round and joined other investors like GGV Capital, Clearvue Partners, NetEase, Sky9 Capital, Source Code Capital, Northern Light Venture Capital, and Iming Venture Partners.
The latest round brings BUD’s total funding to $60 million after a seed and venture round plus a dual Series A.
The funding will help BUD propel its 3D metaverse platform to the masses (it isn't clear how many active users currently inhabit the BUD metaverse).
BUD will launch an NFT marketplace.
BUD plans to launch an NFT marketplace, which could bolster transactions of in-universe virtual assets. BUD says the launch is coming soon, but it's keeping a low profile on details (like which blockchain and cryptocurrency the marketplace will use).
Founder Shawn Lin said about the holistic platform, “While BUD makes 3D content creation possible for mainstream Gen Z consumers, we will continue to bring blockchain to mainstream consumers and allow our creators to truly own and monetize their creations.”
The BUD metaverse platform is as legit as can be — but that doesn’t make it risk-free.
There isn't enough historical data to determine the true risks associated with using metaverse platforms. For apps like BUD, the obvious risks are in-app transactions. There are also risks associated with the upcoming NFT marketplace.
Corporate and recreational metaverses are at risk of experiencing cybercrime such as deep fakes, data breaches, and asset hacks. Even external virtual reality headsets can be hacked, which adds another layer of cybersecurity requirements. Meanwhile, millions of dollars worth of NFTs are stolen so frequently that it feels like a constant wave. Actor Seth Green just lost about $308,000 worth of NFTs, and last month a hacker made off with $1 million worth of Bored Ape Yacht Club NFTs.
BUD has been called a metaverse “created by and for Gen Z.” Protecting young, often financially vulnerable individuals is extremely important, and it makes sense to test the waters with new metaverse platforms before embodying their every feature. The metaverse industry is so young that even BUD, founded in 2019, is considered one of the early adopters. While the BUD app is legit, it can still be home to unsavory activity, and both the app and its users should take extra cybersecurity precautions.