Binance is launching its own marketplace for NFTs, which will allow users to buy, sell and create digital collector’s items. Therefore, they are going to be offering non-functional tokens.
The cryptocurrency exchange, Binance announced its plans to launch a marketplace, the aim of which is to have creators and traders of collectors. They are diving into all kinds of things so it is not just going to be an artwork. However, in fact, they would include music, games, sports, and much more.
A spokesperson for Binance told that it would run primarily on the Binance Smart Chain, which also supports the Ethereum network. This means that users through their Binance wallet account will be able to view Ethereum NFTs.
Apparently, the Binance platform will be distributed into two main parts, premium events, and the trading market.
The premium events are expected to feature high-end exhibitions and select works of particular quality and excellence. Creators will receive 90% of the proceeds for the premium events and Binance would charge a 10% fee for that. The idea is to highlight certain things and exhibitions will bring them in the forefront and maybe attract more crowd.
The trading market on the other hand will allow users a processing fee of 1% to create and deposit their own NFTs. The users will also earn 1% from proceeds as royalty.
The NFT marketplace is launching in June, which means it would be launching six months after the NFT craze started. Binance is otherwise very quick so it remains to be seen why they want to launch this so late. By the time, the launch happens the craze might even be dried up by then.
Many artists do not like putting their artwork on the Binance chain as they see it as a rip-off of other platforms. Therefore, this leaves another question mark as to who will be putting their work on the platform.
Binance smart chain is fairly centralized in terms of what can be done there. Thus there will be control questions that are going to be inherent as part of any of this when one talks about the non-fungibility aspect of these tokens.
However, it makes some sense in some ways because if you are in exchange for that established binance you have an existing customer base. This means you are kind of folding a service offering that currently exists. Some people might have the appetite for such innovation so binance might just be easing some of the off-ramps
The idea that entertainment, arts, and sports, etc. integrate with existing binance accounts becomes very attractive for the long-term plateau of usefulness. NFTs could attain this usefulness in the future.
So the fact that binance is rolling out this play is pretty interesting. It shall also be interesting to see how innovates on it going forward.