Matera, a pioneering Web3 startup, has successfully secured a substantial $3.6 million in funding aimed at addressing the monetization challenges prevalent in the creator economy. This funding round attracted attention from prominent investors, including Sidedoor Ventures, HighCass Crypto, Medusa Ventures, The Sandbox, and Saxon Partners, as reported by CryptoSlate.
Matera raises $3.6 million in funding to advance its mission of integrating DeFi with social media platforms. Matera’s core mission revolves around the integration of Decentralized Finance (DeFi) principles with established social media platforms. The goal is to reshape the landscape of the creator economy by merging the vast reach of Web2 platforms with the innovative potential of Web3 technologies. Unlike other initiatives in the Web3 SocialFi space, Matera is not seeking to replace existing platforms but rather aims to leverage them, tapping into their extensive market and large user base.
Building Bridges, Not Replacements
Sam Huber, Matera’s CEO, emphasized the limited adoption of Web3 SocialFi, attributing it to the underestimated network effects of Web2 platforms. Huber highlighted the significant switching costs for creators when attempting to build an audience from scratch on new platforms. Matera positions itself as a bridge, enabling users to benefit from the scale of Web2 platforms while accessing the economic advantages of Web3 technologies.
As Matera raises $3.6 million, it aims to bridge the gap between Web2 and Web3 technologies for creators. Matera’s strategy revolves around allowing creators to develop their Matera Credit Score based on their engagements across established platforms. This score can then be exchanged within Matera’s ecosystem for liquidity and rewards. The company predicts that this approach will catalyze substantial growth in the creator economy, forecasting it to exceed $1 trillion by 2030 and attract 100 million creators and their followers to on-chain platforms.
Future Plans and Expansion
Currently, Matera supports creators on the social media platform X (formerly Twitter), enabling them to fundraise and monetize their loyal fan base. However, Matera has ambitious plans to extend its integration to other social media platforms in the near future. The company is also focused on developing a robust blockchain infrastructure encompassing a DeFi platform, protocol layer, and layer-2 network to further enhance its offerings.
Matera’s recent funding success and strategic vision signify a significant step forward in bridging the gap between Web2 and Web3 technologies, promising to revolutionize the creator economy in the years to come.
Matera’s Unique Approach
Matera’s strategy of integrating DeFi with established social media platforms marks a significant departure from traditional Web3 SocialFi initiatives. By not aiming to replace existing platforms but instead leveraging their market reach, Matera seeks to minimize the high switching costs that creators often face when moving to new platforms. This approach is innovative as it acknowledges the strength of Web2 network effects while harnessing the economic potential of Web3 technologies.
As Matera raises $3.6 million, it highlights investor confidence in its innovative approach to the creator economy. The limited adoption of Web3 SocialFi, as highlighted by Matera’s CEO Sam Huber, underscores a critical challenge in the creator economy. The underestimation of Web2 platform network effects has resulted in barriers for creators looking to explore the benefits of Web3 technologies. Matera’s solution, through its Matera Credit Score system and ecosystem rewards, aims to incentivize creators to engage with both Web2 and Web3 platforms, potentially catalyzing significant growth in the creator economy.
The CEO of Matera, Sam Huber, pointed out that not many creators are using Web3 SocialFi yet. This is because they underestimate how strong the old platforms are. Matera’s goal is to show creators the benefits of Web3 without making them leave what they already know. Matera’s strategy is about making things simpler for creators. By connecting the best of both worlds, they hope to open doors to new opportunities and make the creator economy even better.
Also Read: US Lawmaker Slams SEC’s Ethereum Investigation, Fostering Debate on Crypto Regulation.
