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FTX US has just launched FTX NFT – a marketplace that supports Solana NFT, and soon NFT Ethereum. With this new product, FTX is trying to compete with OpenSea – one of the most popular NFT markets today.
Buy NFT with USD via credit card on FTX NFT
Not like OpenSea and decentralized Solana marketplaces like Solanart and DigitalEyes, the FTX NFT allows users to use USD to buy and sell collectibles using a credit card or money via bank transfer. Users can also use crypto to buy and sell NFTs.
Like CEX FTX in the US, this NFT marketplace is also regulated by US law, which means that users – in the US or elsewhere – must go through an identity check KYC. This is the main difference compared to other NFT marketplaces. But the fact that users can buy NFTs with USD and credit cards is likely to appeal to a wider audience outside of the crypto space.
“NFT is a niche right now because it has become a DeFi product,” said Brett Harrison, president of FTX USA.
“We hope that a centralized NFT marketplace, where we allow people to fund their accounts with credit cards or bank transfers, will bring more liquidity to the marketplace, helping better price discovery and fairer markets,” he added.
NFT acts as a certificate of ownership of a rare digital item. The NFT market will explode in 2021, with $2.5 billion in trading volume in the first half of the year, according to DappRadar. This is a huge jump from the $200 million figure for the whole of 2020. After a summer of lull, the NFT market has grown to new heights, with a trading volume of $10.67 billion in the year alone. 3rd quarter of 2021.
“The crypto community is very interested in NFT right now and so are we. We think this is a natural thing, as we are deeply connected to blockchain and have a technology platform that can support simultaneous auctions and trade with hundreds of people. thousands, if not millions, of users,” said Harrison.
How does FTX NFT work?
Initially, the FTX NFT will support the Solana blockchain, with NFT trading volume growing thanks to leading collections such as Degenerate Ape Academy and Solana Monkey Business. These two collections have sold NFTs for more than $1 million, helping Solana generate millions of dollars a week.
Users can transfer Solana NFTs from Metaplex to the FTX NFT platform to sell them. In addition, users can mint and create their own NFTs on the platform, these NFTs must be approved before listing.
Unlike Solanart, FTX NFT will not strictly curate the collections listed, but they do have the specifics of a regulated centralized exchange.
Eg: Harrison said that they won’t list projects that use NFTs as security tokens — such as projects that use royalties from the sale of secondary NFTs to reward other holders. These FTX-listed NFTs must be purely works of art or collectibles.
FTX US is working with the creators of upcoming collections on the platform to prevent fraud. Harrison said that the information in Solana’s Metaplex contracts – or with Ethereum’s ERC-721 standard – will allow them to verify details about NFTs that are about to appear on the marketplace. FTX can also validate NFT mint addresses on Solana, says Harrison.
FTX NFT charges a 2% selling fee, which is lower than OpenSea’s fixed 2.5% rate and Solanart’s 3% rate. Harrison said that the exchange will “respect decisions regarding royalties from the contract” for NFTs transferred to this marketplace. Unlike other Solana NFT marketplaces, FTX NFT will allow users to sell through auctions, in addition to listing a fixed price.
Solana NFT is picking up speed, but Ethereum is still the leading platform in this space by far. Huge collections like CryptoPunks, Art Blocks, and Bored Ape Yacht Club all reside on Ethereum, and the NFT of the popular game Axie Infinity located on Ronin – a sidechain based on Ethereum. Ethereum took a huge share of the NFT market in terms of trading volume this Q3 quarter. And soon, Ethereum NFT will also appear on FTX.
Open up competition on the marketplace
Solana’s rapid rise in recent times has generated millions of dollars in fees for NFT marketplaces such as Solanart and DigitalEyes – platforms with small development teams and are continuously launching multiple activities. motion. Just a few weeks ago, Solana NFT collections generated more than $139 million in total trading volume, according to data from Solanalysis.
With a large user base and reach, plus lower fees, as well as the ability to bid and pay in USD, FTX US is focusing on the nascent Solana NFT space with the goal of taking a slice of the market pie. most.
Ultimately, OpenSea is a much larger target for FTX. This leading NFT marketplace generated nearly $6.9 billion worth of trading volume in the third quarter alone, according to Dune Analytics. OpenSea does not currently support fiat payments, but they will launch them in the future.
“OpenSea has the advantage of being 3 years old, they certainly have a lot of outstanding features and their marketplace is also excellent in many ways, but we are a very fast growing company and sensitive to trends direction. We think we can catch up with OpenSea’s technologies, hopefully in a short period of time,” Harrison said.
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