Cryptocurrency exchange Binance is all set to launch its marketplace where users can create and trade NFT. Revealing its plans on Tuesday, the crypto-exchange mentioned that now users can buy and sell digital collector’s items popularly called as Non-Fungible Tokens (NFTs).
Binance to Launch an NFT Marketplace
Non Fungible Tokens are a type of digital asset that certifies the uniqueness of the virtual item, which is non-interchangeable. Statistics representing an increase in adoption of NFTs are reported by NonFungible.com. According to the data, a leader in sales of these tokens soar more than $2 billion in the first quarter. NFTs could be anything from works of art to sports trading cards, sold on NBA Top Shot, a popular online basketball collectibles platform.
From the latest, digital artist Mike Winkelmann (AKA Beeple) sold its NFT for a record-breaking $69 million. World’s largest crypto exchange by trading volume, Binance, mentioned that its platform would basically operate in two markets: a premium venue for top auctions and exhibitions and a standard trading market that anyone can use to mint new tokens.
Talking about the premium segment, it would charge a 10% cut from the proceedings of the major auctions.
Binance mentioned that With 90% going to artists. The day-to-day trading market will charge a 1% “processing fee,” while creators “will continuously receive 1% royalty.”
Nifty Gateway would also open up a new revenue stream for Binance, which has significantly benefited from the increasing interest in digital gold and other digital currencies. Nifty has hosted multiple auctions from big names like Eminem and Grimes in the past.
The Aim Behind the Project Launch
Helen Hai, head of Binance’s NFT project said “Our aim is to provide the largest NFT trading platform in the world with the best minting, buying, and exchanging experience, by leveraging the fastest and cheapest solutions powered by Binance blockchain infrastructure and community.”
The proposal by Binance marks a challenge for crypto exchange Gemini, founded by Tyler and Cameron Winklevoss. The exchange employs its own NFT marketplace. The NFT feature by Binance is all set to commence in June.