Binance has announced that they will be launching an NFT marketplace, bringing non-fungible tokens to the world’s largest cryptocurrency exchange market.
Non-fungible tokens, or NFTs, are a form of digital asset designed to show ownership of a virtual item. Most recently they have been used by artists and musicians for ownership of digital work, but in theory could be applied to any digital collectible or asset.
Sales of NFTs have skyrocketed to over $2 billion in the first quarter of 2021 according to data pulled from NonFungible.com. This number does not include a massive $69 million NFT purchase by digital artist Mike Winkelmann in March.
The new Binance marketplace will reportedly feature two distinct markets. One will be a premium market for high-value auctions and trades, and a regular market designed so that any creator can mint new NFTs and auction them off.
The premium segment will see a 10% cut going to Binance, with the other 90% of the trade going directly to the artist. The regular market will impose a 1% “processing fee” while creators will receive continuous royalty fees of 1%.
Binance will launch its NFT market in June and has already launched the landing page that will allow digital creators to contact Binance for potential partnership agreements.
“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,” said Helen Hai, the head of Binance’s NFT projects.
The Binance NFT exchange poses a direct challenge to Gemini, a crypto exchange run by Tyler Cameron Winklevoss. Gemini operates Nifty Gateway, another NFT marketplace that has hosted sales from big name creators like Eminem and Grimes.
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