July 2, 2022
  • July 2, 2022

Binance Cryptocurrency Exchange Launches NFT Marketplace

By on April 27, 2021 0

Changpeng Zhao, CEO of Binance, speaks during a TV interview in Tokyo, Japan on Thursday, January 11, 2018.

Akio Kon | Bloomberg | Getty Images

LONDON – Cryptocurrency exchange Binance on Tuesday revealed plans to introduce its own marketplace where users can create, buy and sell digital collectibles known as NFTs.

NFTs, or non-fungible tokens, are a type of digital asset. They are designed to represent the ownership of rare virtual items – which can be anything from works of art to collectible sports cards, like those sold on the popular online collectibles platform. NBA Top Shot.

Total sales of these tokens climbed to more than $ 2 billion in the first quarter, according to NonFungible.com, a website that tracks data on NFTs. And that figure doesn’t even represent the record $ 69 million NFT sold by digital artist Mike Winkelmann (AKA Beeple) at Christie’s in March.

Binance, which is the the world’s largest crypto exchange by trading volumes, said its platform will operate two marketplaces: a premier venue for top auctions and exhibitions, and a standard trading marketplace that anyone can use to strike new tokens.

The premium segment would take a 10% reduction in proceeds from major auctions, Binance said, with 90% going to artists. The overnight trading market will charge a 1% “processing fee”, while creators “will permanently receive 1% royalty,” according to Binance.

Binance’s NFT feature is expected to debut in June. The company has launched a landing page for the moment that will allow artists to contact the company regarding potential partnerships.

“Our goal is to provide the world’s largest NFT trading platform with the best typing, buying and trading experience, leveraging the fastest, cheapest solutions powered by infrastructure and community. of the Binance blockchain, ”said Helen Hai, head of Binance’s NFT project.

The move poses a challenge for Gemini, the crypto exchange founded by Tyler and Cameron Winklevoss. Gemini operates its own NFT marketplace called Nifty Gateway, which has hosted auctions from big names like Eminem and Grimes. It would also open up a new source of income for Binance, which has benefited significantly from the growing interest in bitcoin and other digital currencies.

Coinbase, the largest crypto exchange in the United States, went public on the Nasdaq earlier this month. Like Binance, Coinbase has been given a huge boost by the crypto price spike. Bitcoin, the world’s most popular digital currency, hit an all-time high of nearly $ 65,000 before Coinbase debuted. However, it is down almost 16% from this level.

But there have been concerns about signs of foam in the market. Some have compared the NFT boom to the increase in initial coin offerings, or ICOs, in late 2017 and early 2018. The ICO craze led to a number of scams and many projects were ultimately scrapped. Meanwhile, dogecoin hit a record high above 45 cents a few weeks ago, stoking fears of a bubble in the crypto market.