Binance, one of the most popular Cryptocurrency Exchanges is about to launch their own Non- Fungible- Token(NFT) marketplace on June. The exact dates of launch hasn’t been announced however, the marketplace will run on Binance Smart Chain “mainly,”, but the platform will also support Ethereum.
Their aim is to have creators and traders of Visual Artworks, Music, Games, Sports and pretty much everything that is digital and can be converted into an NFT.
This time, Binance is looking at NFT’s in a very different way, while most marketplaces are randomly allowing all kinds of artists to post their work on their platforms, Binance, however, has divided their marketplace into two parts, the first one is called “Premium Events” and the second is the normal “Trading Market”. This is the first time any marketplace has done this and we are keen to see, how this is going to work for Binance.
The “Premium Events” is basically about exclusive art, exclusive galleries of NFT’s that are curated and displayed as special events. These events will feature selected works and high-end exhibition which Binance will charge a fee of 10% to creators, while they receive 90% of the sales.
Although, Binance has been pretty late with the NFT’s as the craze started around the beginning of 2021 in January, and launching on June means 6 months after the hype.
Therefore, although the market still running pretty hard even in April, as we saw a lot of NFT’s selling for huge amounts. With Rappers like Bhad Bhabie, launching her first NFT’s and Instagram Influencers like “Dude with Sign” also joining the NFT Hype.
However, there is arises an issue with the Binance exchange is the fact that most Ethereum users don’t like Binance and as we know, Ethereum is the most important cryptocurrency for NFT’s. This could pose a big challenge for Binance as many artist may not even consider creating an account on Binance because of the Binance – Ethereum combo. This however, could change in the future.
In the “Trading Market”, users are able to upload and create their own NFT’s on Binance and they would charge a processing fee of 1%. This is pretty low compared to most of the NFT marketplaces where the cheapest rate is 2.5%. However, here comes the ticker, the royalty fees is also unforgiving low at just 1% which is pretty bad. As we know, the core reason why artists and creators come to the NFT platform is because of Royalty Fees as they are able to get a percentage of resale value as profits, if their artwork or digital collectible gets resold again.
Here, most platforms provide at least 10% Royalty fees to the creators as profits from resells. Here, Binance is giving only 1% which really makes no sense at all.
Lastly, the Binance NFT marketplace is going to launch this June, 2021 and we are definitely excited to see how the market reacts to it. We hope that Binance quickly realizes that there are still somethings that they need to take care of, one of them being Royalty Fees and other being Ethereum.