Unstoppable Domains is valued at $1 billion as investors bet on digital identities based on NFT

Unstoppable Domains, which was founded in 2018, has registered 2.5 million domains to date, reflecting the popularity of the new web naming system, which is similar to traditional domains (i.e. “name.com” or “name.org“) but uses terms like “name.crypto” and “name.blockchain,” each of which is tied to an NFT.

Domain Name Sytem(DNS) firm Unstoppable Domains
Unstoppable Domains launched on Product Hunt 3 years ago and have now reached a valuation of $1B

Unstoppable Domains is building what many in crypto see as a critical component of Web3 infrastructure alongside competitor Ethereum Name Service (ENS), which sells “name.eth” domains tied to NFTs.

The latest support will be crucial to further the platform’s engineering goals, Matthew Gould, founder and CEO of Unstoppable Domains, told Fortune “Our core problem that we’re trying to solve—which is creating a user-owned digital identity for everyone on the internet—requires a lot of pieces to come together, and that’s what we’re going to focus on building over the next several years.”

NFT domains can be used as usernames across Web3—the internet’s so-called decentralised iteration—for various apps, exchanges, marketplaces, and services. One frequent use case is using an NFT domain instead of a cryptocurrency wallet address because a wallet address is a large string of random characters and numbers that can easily be mistyped while attempting to move money from one to another.

Unstoppable Domains’ future prospects

Pantera Capital led Unstoppable Domains’ latest fundraising round, which valued the company at $1 billion. Mayfield, OKG Investments, Polygon, and prior investors Boost VC and Draper Associates participated in the Series A round.

Web3 Digital Identity Startup Unstoppable Domains  funding details
Web3 Digital Identity Startup Unstoppable Domains Has Raised $65 Million in Its Series A Funding Round at Valuation of $1 Billion

Unstoppable Domains claims to have made more than $80 million in sales since its inception in September 2019.

Looking ahead, Gould expects that those new to the crypto sector will want to use an NFT domain as their digital identity and username, citing data from the company’s four-year experience. Having admitted that his perspective is quite optimistic, Gould believes that one billion people will own at least one NFT domain in five years, with the majority owning five.