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US-based crypto solutions provider, Ripple, has launched a $250m fund for NFT creators.
The fund was revealed on Wednesday as a strategy to encourage innovation in tokenization with emphasis on non-fungible tokens (NFTs). Creators who choose the XRP Ledger for their projects will enjoy support to build NFT and other tokenization projects.
In a marketing report, “fear of selling, and inadequate understanding of NFT concepts” were identified as two challenges digital artists face when it comes to breaking into the market. Likewise, developers bear the brunt of high transaction fees and poor user experiences on NFT marketplaces. With the Creator Fund, developers and creators can effectively mitigate against these challenges.
Mintable (marketplace), mintNFT (marketplace), and VSA Partners (creative agency) are the first to partner with Ripple on this project. Together with its partners (creative agencies and NFT marketplaces), Ripple’s Creator Fund will facilitate the evolution of NFTs. It will also remove the challenges that limit the creation of compelling projects. These partners will also be the first to access the funding.
Perfectly Suited for NFTs
Up until now, Ripple has not forayed into the NFT battleground with Ethereum and Solana dominating the system. However, its XRPL was noted as a potential platform for NFT trading by an SBI Holdings report in July.
The report stated that “the blockchain XRP ledger has the ability to tokenize not only XRP but also a variety of other assets.”
Again in July, Mintable announced its plans to integrate the XRP ledger which it claimed was perfectly suitable to deliver a seamless experience for NFTs. Recall that Ripple recently acquired a stake in the NFT marketplace when the consumables marketplace announced it raised $13 million in its Series A funding.
About The XRP Ledger
The XRP Ledger is a decentralized, open-source blockchain with a decentralized exchange (DEX) that allows you to buy and sell all types of tokenized assets including NFTs. It runs on the Federated Consensus mechanism and thus eliminates gas fees.
Invariably, it means the XRP ledger is advantageous for creators giving its fast transaction speed, low cost, and built-in royalties. It also has built-in support to guide the use and simplify NFT integrations. Minting NFTs on the protocol will provide a dynamic and cost-efficient process for creators looking for novel ways to monetize their projects.