Binance is launching an NFT marketplace.
Binance, the world’s largest cryptocurrency exchange by trading volume, said Tuesday that it plans to introduce its own marketplace for digital items tied to nonfungible tokens, known as NFTs. This would create yet another major venue for the increasingly popular digital-assets market, and likely more competition to attract creators and investors alike.
NFTs are virtual items created on a blockchain—often used to certify unique ownership of a digital asset that could be anything from art, music, games, to sports trading cards. The NFT market has existed for some years since the invention of blockchain, but recently caught the attention of mainstream investors as some high-profile collectibles were sold at record-breaking prices. Total sales of NFTs soared to more than $2 billion in the first quarter of 2021, more than 20 times the volume of the previous quarter, according to NonFungible.com, a website that tracks data on NFTs.
Binance’s NFT marketplace is set to debut in June, with two venues that would allow artists and traders to create, buy, and sell digital assets. The premium event platform is for high-end auctions and exhibitions, where Binance would take a 10% cut from the proceeds. The standard trading market, on the other hand, allows anyone to create or deposit NFTs for sale or auction for a 1% processing fee. The creators or depositors will receive a 1% royalty payment for all subsequent trades.
“Binance serves millions of users around the world, many of whom will now be able to access the booming NFT space,” said Changpeng “CZ” Zhao, CEO of Binance, in a statement. “In line with our commitment to the freedom of money globally and building an inclusive ecosystem, the Binance NFT marketplace will also support small value creators by providing the highest liquidity and cheapest fees for users.”