Binance is preparing to launch its own NFT exchange.
On Tuesday, the cryptocurrency exchange revealed its plans to launch Binance NFT, a new forum for trading non-fungible tokens. It will be released in June.
Two key markets will be available on the platform: one for premium auctions and exhibits and another for day-to-day trading.
Binance would take a 10% commission on premium market purchases, with the rest going to the developers. Meanwhile, the trading market will charge a 1% transaction fee for each deal, and the creator will receive a 1% royalty on each exchange of their respective NFT.
Helen Hai, the project’s executive director, said:
“By leveraging the quickest and cheapest solutions driven by Binance blockchain technology and community, we plan to provide the world’s largest NFT trading platform with the best minting, purchasing, and exchanging experience.”
Anyone who has been watching the cryptocurrency space closely over the last few months will not be surprised by Binance’s entry into the NFT space. Binance Smart Chain, the exchange’s blockchain project, has had tremendous success by replicating elements of Ethereum, the second largest blockchain by market cap and the birthplace of the NFT boom. Binance’s BNB coin has risen to third place in terms of market capitalization this year, with a market cap of over $88 billion as of publication.
Many Binance Smart Chain apps have a similar experience to DeFi on Ethereum, but without the astronomical gas fees. Binance Smart Chain has been dubbed “CeDeFi” by some because it is a more centralized offering than Ethereum itself. Changpeng Zhao, the founder and CEO of Binance Smart Chain, has been open about his thoughts on Ethereum.
NFT Boom
Though DeFi continues to expand, the NFT space is arguably taking over the crypto spotlight in 2021. According to NonFungible.com, NFTs reported over $2 billion in revenue in the first quarter of this year. With Binance charging a transaction fee for any trade, it’s easy to see why establishing a stronghold in the market would be attractive. Binance introduced stock trading earlier this month, which has been common in DeFi communities like Mirror and Synthetix.
Binance Smart Chain and Ethereum will be supported by Binance’s NFT platform at first. While most NFTs are currently issued on Ethereum, they can also be found on other blockchains such as Binance Smart Chain. If the NFT space continues to expand, it’s likely that operation will shift away from Ethereum’s mainnet and toward other sidechains and blockchain networks. Binance has created a landing page to invite NFT developers to collaborate, and a mobile app will be available soon after the launch.
Binance will have to contend with more than Ethereum: Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has been a pioneer in the NFT space, hosting high-profile sales through its Nifty Gateway network. Eminem earned $1.78 million from his first sale on Nifty Gateway this weekend, joining the likes of The Weeknd and Grimes in using the platform. This Friday, Beeple will debut his spring collection on Nifty Gateway. Since his historic Christie’s sale in March, when his “Everydays: The First 5,000 Days” NFT sold for $69.34 million, Beeple has been regarded as a key figure in the NFT world.
Christie’s is also looking into the possibility. Nine NFTs from the canonical CryptoPunks series will be auctioned off next month at the world-famous auction house, marking a potential change in the conventional art world’s acceptance of technology. If the current trend continues, Binance will face even more competition.