Helius Labs CEO Slams NFT Layer Metaplex For Failing To Make Profit Despite Raising $46M

Updated: 23 May 2023

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Mert Mumtaz, the co-founder and chief executive officer of Helius Labs, has slammed Metaplex for failing to generate profit despite raising more than $46 million in a funding initiative last year. He said Solana would be better than the way it is now.

Mumtaz Slams Metaplex For Making Loss

In a May 23 blog post, the chief executive officer of Helius Labs condemned Metaplex, a company that allows users to build their own Solana-based non-fungible token (NFT) marketplaces, for failing to raise revenue despite raising more than $46 million in funding last year.

BREAKING: @0xMert_ CLAIMS THAT IF @heliuslabs, @xNFT_Backpack, OR @tensor_hq HAD @metaplex'S FUNDING THAT @solana WOULD NOW BE A "TYPE 3 CIVILIZATION ON THE KARDASHEV SCALE, HARNESSING THE POWER OF DYSON SPHERES FOR INTERGALACTIC BLOCKCHAIN DOMINATION AGAINST THE DARK ELVES" pic.twitter.com/bMziRCkD6N

— DEGEN NEWS 🗞️ (@DegenerateNews) May 23, 2023

Metaplex raised $46 million in January in a funding round led by Multicoin Capital and Jump Crypto. The finding initiative also saw the participation of other notable investors, including Alameda Research Ventures, Allen Iverson, Animoca Brands, Michael Jordan, and Solana Ventures.

In a press release, at the time, Metaplex said it would use the secured funds to scale its operations and provide grants to support creators from underrepresented crypto communities. Metaplex had launched more than 85,000 projects as of January 2022.

Despite receiving huge amounts of funds, Metaplex has failed to harness Solana to make a profit in the past several months. While condemning Metaplex for its failure to generate revenue, Mert Mumtaz, the co-founder of Helius Labs, remarked:

“Look all I’m saying is if helius or backpack or tensor had metaplex’s funding (18x more)— solana would now be a Type 3 Civilization on the Kardashev scale, harnessing the power of dyson spheres for intergalactic blockchain domination against the dark elves.”

Solana NFTs Fell Over 50% In Sales On YoY

Solana NFTs are down over 50% in trading sales volume year-over-year. According to CryptoSlam, Solana NFTs have fallen from $26 million in May 2022 to just $3.4 million in May 2023. Solana NFTs have also recorded short growth in the number of NFT buyers and sellers.

Solana NFT Sales Volume: Source: CryptoSlam.io

In December 2022, Solana experienced a big blow after its top NFT collection. DeGods and y00ts, announced plans to shift to its rival Ethereum network. DeGods migrated to Ethereum while its sister NFT collection y00ts went to Polygon, an Ethereum scaling solution.

DeGods will officially bridge to Ethereum in Q1 of 2023.

The bridge is not the destination.

It is on the path to get there. pic.twitter.com/Wy8CbGx5VZ

— DeGods (@DeGodsNFT) December 25, 2022