Cryptoys banks a16z funding to build NFTs for kids

The past several months haven't been entirely kind to the NFT market -- while transaction volume hasn't stuttered too significantly, the dollar amount invested in the space has been in free fall as cryptocurrency prices have taken a historic dive. With that as background, it might not seem like the best time to launch an NFT platform, let alone one geared toward children.

And yet, NFT startup Cryptoys is raising tens of millions of dollars with the goal of building a blockchain-based toy company that can expose younger users to the ideas of digital ownership and NFT mechanics. The platform, which will launch widely in the next couple months, features cutesy big-eyed animal characters with hats, sunglasses and cryptographically ensured uniqueness.

Platforms for trading non-fungible tokens have often proven themselves difficult for even adult users to navigate, so the prospect of building an onboarding for younger users seems quite daunting. Cryptoys will be side-stepping some of this friction by partnering with Dapper Labs and launching their platform on the startup's Flow blockchain. Flow, which Dapper's NBA Top Shot runs on, offers a blockchain-lite experience that lets users sidestep some of the hallmark stumbling blocks of NFT land including high gas fees, convoluted wallet onboardings and the inability to transact with payment methods like credit cards.

Even so, making a blockchain easy enough for kids to use is a bit of a moot point at the moment, as users signing up for the platform will be required to be 18 or older, though CEO Will Weinraub says that parent-controlled wallets are on the way that will allow younger users to interact more directly with the platform and learn about NFTs.

"You have to take a step back from all of this web3 maximalism," Weinraub says. "You've got to take baby steps to getting millions and millions of people to these new paradigms."

Cryptoys is getting some help on this journey. The startup tells TechCrunch it has recently closed a $23 million Series A round led by a16z Crypto with participation with a host of other partners including Mattel, Dapper Labs, Draper & Associates, Acrew Capital, CoinFund, Animoca Brands and Sound Ventures. The startup announced a $7.5 million seed round -- also led by a16z Crypto -- in October.