By
Steve Muchoki
April 26th, 2024
FTX.US also plans to start supporting NFTs on the Ethereum blockchain soon.
Crypto exchange FTX.US is expanding its services into the non-fungible token (NFT) space as it is launching trading for Solana-based digital collectibles. On the 11th of October, FTX.US announced the new NFT marketplace. NFTs will be available to users to mint, trade, auction, and authenticate NFTs based on the Solana blockchain.
Before now, the FTX.US NFT marketplace only bought and sold NFTs minted directly on its website. Trading of NFT collections on Solana such as Solana Monkey Business, Degenerate Ape Academy and Aurory took place on other marketplaces like Digital Eyes and Solanart. FTX.US president Brett Harrison shed more light on the new NFT marketplace. He said:
“With the launch of this platform, we hope to provide both US and global users with a regulated marketplace that is intuitive and responsive to their needs.”
FTX.US NFT Marketplace
Despite the Ethereum blockchain accommodation of a bulk of digital collectibles, FTX.US chose the Solana blockchain first. The crypto exchange plans to start supporting NFTs on the Ethereum blockchain soon. The fact that FTX.US prioritizes Solana over Ethereum explains two points.
Firstly, it shows that the company’s CEO and richest crypto billionaire Sam Bankman-Fried has invested in the Solana ecosystem. In addition, the ecosystem does not yet have a powerful marketplace for NFT trading. Rather, the Solana platform hosts a number of little-known marketplaces. While Solanart and Solsea currently charge 3 percent sales fees, FTX.US said its new marketplace would charge 2 percent.
Solana as FTX.US’s preference could increase the blockchain stance for a bigger piece of the NFT business. Compared to Ethereum, the Solana blockchain is cheaper to use. Also, the blockchain conducts transactions faster than the Ethereum blockchain. Regardless, many NFT traders still prefer to use the Ethereum platform for their transactions.
Harrison revealed further that FTX.US would begin with 75 NFT projects.
FTX has specified that it will not allow its users to ist revenue-sharing projects. The exchange also capped its artist royalty schemes at 40 percent. According to FTX, it will support all Solana NFTs that follow the NFT protocol Metaplex standard.
FTX designed its NFT service in a different way from Ethereum’s top NFT marketplace, OpenSea. Only users with FTX accounts linked to their real-world identity will have access to FTX’s offering. Furthermore, the marketplace will allow bank transfers and credit card purchases. Customers can also pay for NFTs in US dollars, Solana, or ETH, and they can withdraw NFTs from the platform to external wallets.
The NFT marketplace will also work on ensuring its customers buy authentic NFTs. To achieve this, FTX.US will be working closely with NFT creators to verify the originality of NFTs up for sale.