Global crypto-currency exchange Binance is set to launch a non-fungible token (NFT)-based marketplace next month, aimed at connecting users to creators and traders of collectibles in visual arts, music, games and sports, among others.
Established in July 2017 by blockchain expert Changpeng Zhao, Binance is a European, Maltadomiciled crypto-currency exchange with a strong presence in Kenya, Nigeria and SA.
The exchange provides a platform for trading various crypto-currencies and was billed as the largest crypto-currency exchange in the world in terms of trading volume, as of April 2021.
According to the company, the new marketplace, backed by NFT technology, will allow artists and creators from across the world toshowcase and monetise their work and sell it directly to fans and enthusiasts, using crypto-currency.
An NFT is a secure digital file which validates ownership, and is stored on the blockchain system, where each NFT can represent a unique digital item, and thus is not interchangeable.
NFTs can represent digital files such as art, audio, videos, items in video games and other forms of assets in the physical world. While the item itself can be copied, the NFT that includes certification of ownership cannot be duplicated.
NFTs have in recent months made headlines across the world, as artists, businesses and other content creators use them to securely sell digital works.
“Binance has the biggest crypto community of over 50 million people with a strong local team and community across more than 180 markets,” says Brenton Naicker, business development manager for Binance Africa.
“The NFT platform will allow artists and creators from across the world to mint, deposit and auction or sell unique, verifiable pieces of art, content, music, etc, online, with an extensive range of fiat gateways allowing buyers to seamlessly acquire and artists to simply cash out.”
Binance says its marketplace will be divided into two main parts: the premium events and trading market.
Premium events will feature select works and high-end exhibitions, for which Binance will charge a 10% fee, with creators receiving 90% of the proceeds.
The trading market will be for users to create and deposit their own NFTs for a processing fee of 1%, and will subsequently receive a 1% royalty from proceeds.
The company says it is in discussions with a number of artists and creators to launch on the platform, with Bayern Munich football star Alphonso Davies already being among those whose work will be listed on the marketplace. Davies will reportedly list three pieces of his limited-edition virtual art on the platform.
“The marketplace will also ensure artists are rewarded for secondary market activity – getting a percentage portion for each subsequent sale in the NFT marketplace. Artists and creator announcements will only be public over the next few weeks,” adds Naicker.
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