The to-be-launched Binance NFT platform will offer two major services: Premium events and trading.
Cryptocurrency exchange platform Binance has revealed plans to launch its own non-fungible token (NFT) marketplace. Binance users will be able to create and trade NFTs on the new platform. The exchange platform announced the launch of the NFTs marketplace on the 27th of April.
The NFT market has been expanding over the past months. Celebrities, athletes, and companies have ventured into the sector, thereby fuelling the adoption of non-fungible tokens. Now, Binance marketplace may come as a rival to the popular marketplace Nifty Gateway. Notably, Nifty Gateway is the most used platform artists use in offering their NFTs to interested buyers. Already, a lot of people have shown their NFTs on the well-known marketplace.
In the announcement, Binance stated that the marketplace for NFTs will be launched in June.
Despite its speedy expansion lately, the NFTs activity is currently on a decline. According to data provided by The Block, the weekly trading volume of NFTs has plunged after reaching its peak in February. Back in February, there was a fuzz around the NFTs space, resulting in a spike in trading volumes. However, the data compiled by The Block stated that there is a drop in weekly users and transactions on NFTs platforms.
Binance launching its marketplace during a period of decline has raised questions in the NFTs marketplace. Speaking to The Block, a Binance spokesperson referred to the decision as a “strategic move.” He added that the exchange believes in the “fundamental value and potential of NFTs applications in the long run.”
Speaking further, the spokesman added:
“We aim to build the largest NFTs trading platform in the world by leveraging the fastest, cheapest, and most secure NFT solutions powered by Binance blockchain infrastructure and community.”
According to the spokesman, Binance is confident that its large user base could help its NFT platform attract “millions of potential NFT collectors in the world.” The exchange platform boasts millions of users across 180 countries and regions.
Features of Binance NFT Marketplace
The to-be-launched Binance NFT platform will offer two major services: Premium events and trading. Creators will be able to display and auction their work on the Binance NFT platform using premium events. The creators’ profit will be 90% of the proceeds while the remaining 10% goes to Binance. The 10% profit allocated to Binance represents the platform’s fees for these events.
With the trading feature, creators will be able to mint their NFTs. In addition, the trading feature will allow users to deposit their existing NFTs for sales or auctions. Binance will charge creators and depositors 1% as the processing fee, and they will continuously receive 1% royalty.
Also, the spokesperson said the Binance NFT platform would mainly support the Binance Smart Chain. He added that the platform might support Blockchain networks, including Flow and Tron, in the future.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.