XP, a Solana-Powered Ticketing Exchange, Garners $6.2 Million in Funding for Growth and Fan-Centric Innovations
A secondary ticketing exchange named XP, which leverages Solana blockchain technology, has successfully concluded a $6.2 million seed funding round.
This investment, disclosed exclusively to Lightspeed, was spearheaded by Blockchange and saw participation from L1D and Reflexive.
While XP currently utilizes Solana for offering discounted ticket sales, the company alludes to more ambitious plans focusing on enhancing the overall fan experience in the future.
Challenging Market Incumbents with Solana and Transparency
XP is one of several new-entrant ticketing platforms aiming to disrupt the often-criticized, yet dominant, industry players such as TicketMaster and SeatGeek.
These established ticketing companies have recently come under fire from the Biden administration, leading to a newly enacted rule, effective this past Monday, which bans hidden “junk fees” often associated with ticketing platforms.
In line with a more transparent approach, XP presents all-inclusive prices by default.
Its pricing for upcoming New York Mets games, for example, is reported to be in close alignment with those found on TickPick, another well-known secondary ticketing application.
The platform’s utilization of Solana technology is primarily found in its ticketing codes, which are encrypted as Non-Fungible Tokens (NFTs).
This blockchain integration is not overtly promoted on the company’s website; the only visible crypto-related feature is the option for users to connect a digital wallet and make payments for tickets using USDC.
Leadership, Traction, and Strategic Direction
When queried about the platform’s current market performance, Mike Saunders, founder and CEO of XP, stated, “XP has sold millions of dollars in annualized ticket sales to thousands of customers.”
He remained noncommittal regarding the potential launch of a proprietary XP token.
Saunders possesses a track record of entrepreneurship; his 1990s food ordering and menu website venture was acquired by GrubHub in 2011.
Subsequently, he established a technology development firm called Blueprint before founding XP, which represents his first foray into the blockchain sector.
Future Growth Dependent on Expansion and Enhanced Fan Perks
The capacity of this recent funding to generate venture-scale returns for XP may largely depend on the company’s forthcoming expansion initiatives.
The ticketing marketplace is a crowded and competitive field, and with the new regulations concerning junk fees now in effect, transparent pricing might offer a less significant point of differentiation.
XP’s website teases that the platform will soon offer “more” than just tickets. Saunders also confirmed that plans are in development to enable users to list and resell their tickets through the platform.
“Fandom is deeply personal, and we believe blockchain unlocks a whole slew of opportunities for fans to be recognized, celebrated, and rewarded,” Saunders commented.
“Our goal is to leverage verified fandom to provide access to special rewards, epic experiences, and exclusive perks to members of the XP community.”
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