A Canadian Clean Energy Startup Just Made $5M from Uranium-Backed NFT

Lux and Madison Metals are breaking new barriers in tokenomics after their joint Uranium-backed token raised more than $5 million from the first tranche mint.
Image source: Madison Metals

Quick take:

  • Madison Metals reported $5.12 million in initial sales of the first Uranium-backed NFT.
  • The capital inflow comes from minting the first tranche of its Lux Uranium token.
  • Madison has teamed up with Lux, a blockchain company to tokenize 7.65 million pounds of Uranium.

Madison and Lux’s uranium-backed non-fungible token (NFT) has raised $5.12 million in capital from its first mint. The Canadian clean energy startup in September entered into an agreement with the blockchain company to tokenise 7.65 million pounds of U3O8 (uranium).

The sales come from the company’s initial first tranche mint launch of the Lux Uranium token. Lux said the sales proceeds had exceeded its expectations.

The token was offered at a marginal discount to the uranium spot price providing an exciting value proposition to buyers.

Lux said it will provide additional guidance for follow-on orders in the coming weeks, following the successful sale of the first tranche.

When Madison and Lux first announced the partnership on September 30, Zach Kelling, CEO of Lux Partners said the partnership will allow users of the Lux.Network of blockchain to mint, trade, and stake uranium-backed NFTs.

An NFT is a cryptographic file minted on the blockchain to provide proof of ownership of a digital collectible, artwork, JPEG, or in Lux and Madison’s case, a portion of real-world resources like uranium.

“Through staking, users are exposed to the upside of the uranium market while also earning additional fees from lending and liquidity. By digitizing assets, Lux expects to unlock greater price discovery, asset value, and liquidity throughout the entire mineral extraction lifecycle,” said Kelling.

The auction went live on the Lux Market on October 15, allowing nearly everyone around the world to mint Lux Uranium NFTs.

Lux was able to offer the lowest possible pricing by cutting out the unnecessary and often expensive middlemen that facilitate uranium transactions in centralised markets.

Lux is leveraging NFT technology to bring liquidity to the world’s most valuable resources through tokenisation. 

Madison Metals taunts itself as a technology-driven company, that is leading the campaign for the adoption of clean energy. Clean power companies use uranium to create energy through fission— the process of splitting uranium atoms to produce heat and release steam, which then spins turbines.

Although uranium is a relatively common metal, it is not as liquid as gold or silver. Therefore, Lux thinks tokenisation through NFTs could give more investors access, thus increasing liquidity.

Duane Parnham, Executive Chairman and CEO of Madison Metals in September commented: “We believe there are many benefits to forward selling a portion of our assets in this way. We expect it to provide non-dilutive capital to explore, develop and mine our properties while also generating additional revenue through token trading fees.”

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