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Crypto exchange FTX's NFT marketplace launch ends up being spammed

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Pavan A Follow

INDIA

Sep, 13 2021

Sep, 13 2021

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Popular cryptocurrency exchange FTX has announced the launch of its marketplace to enable NFT creators and owners to trade their NFTs, thereby becoming the latest crypto platform to do so.

 

Recently, Sam Bankman-Fried, the founder and CEO of FTX announced that users can list, buy and sell non-fungible tokens on the platform. This is available not only to those located in the US but Non-US users can also avail the services offered by FTX. The most interesting part of the launch is that all NFTs will be cross-chain compatible with Ethereum/ Solana.

 

In a series of tweets, the founder tweeted all NFTs will be traded cross-chain ETH/SOL and the deposits/withdrawals will soon open up.

 

Non-fungible tokens act as proof of ownership for the type of digital assets like artwork, music, video, or concert tickets.

NFTs currently are at the peak of the hype, selling digital artworks as high as $1.14 billion in the OpenSea marketplace.

 

Ethereum is currently the most popular chain among the non-fungible token platform. Whereas, Solana has attracted enthusiasts to the ecosystem, offering high throughput with lower commissions on transactions. Ethereum uses proof-of-work(PoW) and Solana runs on a proof-of -stack(PoS) mechanism, which is less energy intensive.

 

FTX US is a U.S regulated cryptocurrency exchange platform that's built to grow the digital currency ecosystem by offering traders a platform and aim to become a market-leading US cryptocurrency exchange.

 

FTX has made the sign-up process extremely easy. The founder of FTX uploaded a handwritten word “Test” NFT by “artist” SBF item to test out the new auction functionality, which currently has the highest bid of more than $2000.

 

Soon after the new marketplace took off, the users started spamming with images of fish, which led the company to charge its users $500 to list their own NFT.

 

“Due to the massive number of submissions, too many of which were just a picture of a fish, we are now charging a one time $500 fee to submit NFTs,” said Sam Bankman-Fried.

 

The charges for Non-fungible token submission have been reduced later to $10 per NFT from $500 entry fees, which is far cheaper than other marketplace like OpenSea. 

 

“Hopefully this reduces fish-related spam while also making it (NFT creation) affordable,” said Bankman- Fried. FTX will refund $500 that is paid by the users to create their token. 

 

Besides this, there will be a 5% charge, which will be levied on the buyers and sellers for each trade. 

 

It’s quite surprising to note that Sam Bankman-Fried had earlier expressed concerns over the NFT space being vulnerable to the investors:

 

“It could lead to just incredibly fast and giant adoption. It could also lead, frankly, to sort of a sour taste in people’s mouth if there’s a crash, and no one ever quite figured out what it was.”


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Pavan A

CBW - External Analyst

INDIA

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