Having seen the parabolic growth of the non-fungible token (NFT) ecosystem since the beginning of the year, the popular crypto exchange FTX has become the newest crypto platform announcing the launch of its original NFT marketplace. Exclusively for US customers, the platform will allow users to mint, buy, and sell NFTs. People will be able to trade them cross-chain on Ethereum and Solana blockchains. They are also expectedly planning to launch deposits and withdrawals in the coming weeks. This will open up the possibility of external NFT deposits on the platform.
During a public demo of the new feature, the exchange released a word-art style image that simply reads “Test.” The starting bid for the image was $1,100. It was sold for a whopping of $270,000.
Almost two weeks ago, FTX founder Sam Bankman Fried in an interview with CNBC’s Street Signs Asia two weeks ago expressed caution about the rapid growth in the NFT space, suggesting that all the investors could be vulnerable in such a dynamic market if they are not fully informed of the potential for risks:
“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.”
FTX Isn’t The Only One
FTX isn’t the only cryptocurrency exchange to hit the market in 2021. Binance, its direct competitor also recently launched its own NFT marketplace in June. It was with its special “100 Creators” project especially in collaboration with footballers such as Michael Owen and Alphonso Davies. It has also collaborated with singer-songwriter Lewis Capaldi and artist Trevor Jones.
OKEx, the Crypto spot and derivatives exchange also recently launched an NFT hub. It allows its users to mint, buy, and sell their NFT assets on the exchange’s own ecosystem. Just the last month itself, OpenSea became the first NFT marketplace to exceed $1 billion in monthly trading volume. Moreover, according to the data gathered from DappRadar, the platform has also recorded a staggering $ 4 billion in sales in the past 30 days, beating its closest competitors, Axie Infinity and CryptoPunks, by $ 790 million and $ 583 million, respectively.
Dune Analytics, the popular research platform reported that total NFT sales rose to $2.5 billion in the first half of 2021 from $13.7 million in the first half of 2020.