Mogo Inc (NASDAQ: MOGO), digital payments and financial technologies provider, said on Tuesday that it is entering the metaverse with an investment in NFT Trader. NFT Trader is a Canadian start-up that runs an over-the-counter (OTC) peer-to-peer trading platform for non-fungible tokens, or NFTs. Previously, the business worked on projects such as Cool Cats, Bored Ape Yacht Club, Gutter Cat Gang, and CyberKongz.
The announcement has brought about the massive potential for the digital payment provider, with Mogo's stock increasing by 4% in response to the announcement. According to David Feller, CEO of Mogo,
"The financial world is moving at a breakneck pace, and nowhere is this more evident than with the rise of Web3, the Metaverse, and NFTs."
Following the news, BTIG analyst Mark Palmer said in a letter to investors that the investment was a logical expansion of Mogo's platform. He anticipates a positive reaction to the company's stock. The analyst now rates the stock as a buy with a $13 price objective. It is currently trading at the $2.86 level.
The business first invested in NFT Trader through a convertible note, which, when converted, will represent a 25% stake in the company. Mogo may buy an additional 25% stake within six months of the first investment by a secondary acquisition of common stock. Additionally, it has the authority to designate one director to the NFT Trader board of directors.
In the words of Feller,
"We think that a next-generation financial platform will not only bridge the divide between conventional finance and DeFi but that the fusion of the digital and physical worlds will become one of the most significant development possibilities in history."