Binance Plans to Launch NFT Marketplace

A few days ago, Binance crypto exchange announced the launch of its own NFT marketplace where users can create and trade NFTs. These types of tokens (non-fungible tokens) represent the possession of a (virtual) object, and interest in them has increased steadily in recent years. 

The sale of an NFT for $69 million, one of the most expensive works of art in history, attracted media attention. In the first quarter of 2021, sales exceeded $2 billion, according to nonfungible.com.

Auctions of particularly popular NFTs must be held on a premium marketplace, while a standard marketplace allows anyone to create an NFT and offer it for sale. Binance will charge a commission of 10% for the premium market and 1% for the standard market. 

What Is an NFT?

NFT stands for a non-fungible token. This means that no two NFTs are alike, each of them is different and represents the ownership of an individual item. This object can be both physical and virtual in nature. So far, most of NFTs are virtual works of art that can be sold by artists and then purchased by users. In the long term, completely different areas of application are also possible, such as processing ticket sales or proving an identity via NFT on the Ethereum blockchain.

While NFTs have been on the market for several years, interest in them increased only during the year. The trading volume of NFTs, as well as the number of artists/buyers, grew continuously. 

Conclusion: NFT Popularity Is Growing

The blockchain ecosystem never stands still, there are always new technological developments with a wide variety of application areas. Today we cannot really estimate what opportunities NFT technology will create in the medium and long term. We’re still at a very early stage and it will be exciting to see how this sector develops.

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