The exchange also set up a paywall after the launch of the NFT marketplace to handle spam incidents
Sam Bankman-Fried, CEO of FTX, announced in an interesting way that the crypto exchange has launched its own non-fungible token (NFT) marketplace. He introduced the platform to a simple “test” piece of art that he created. The piece has seen bids rising since then, and sold for $ 270,000 this morning. The FTX CEO stated in the Twitter post that the exchange’s new NFT platform would be exclusively available to US clients, allowing them to buy, sell and even mint their own NFTs.
The new platform will enable cross-chain trading across Ethereum and Solana, to which Bankman-Fried added that users would soon get additional features. He listed some of the aspects that were soon introduced, including the ability to make deposits and withdrawals. There will also be a provision for users to bring NFTs from external sources to FTX.
The announcement meant a change to the current FTX model, limiting users to saving and viewing. With an improved operating model, users can sell their NFTs on the exchange using the deposit and withdrawal functions
The NFT marketplace initially launched with free access for everyone, but saw several spam incidents shortly after it was launched. This resulted in the exchange charging a one-time fee of $ 500 for users who wanted to pop.
“Because of the huge number of submissions, too many of which were just a picture of a fish, we are now charging a one-time fee of $ 500 for submitting NFTs.” Bankman-Fried tweeted.
However, as expected, users did not take the changes very well. After continued opposition from customers, FTX stopped charging the $ 500 fee and then provided a fairer flat fee of $ 10 for all users who wanted to mint NFTs, with users who deposited the initial $ 500 received a refund.
With the new offering, FTX intends to pay fees to users on both sides of the sale. The buyer will be reimbursed 5%, sellers will also be charged an additional 5%. The exchange advised prospective customers not to join the trade unless they understand it, as all NFT purchases are non-refundable.
Many industry players have increasingly embraced NFTs and even given their customers the opportunity to play around with NFTs. Binance, the world’s largest crypto exchange by volume, announced its NFT platform in collaboration with artists, athletes and other creatives in June this year.