Binance, the world’s largest cryptocurrency exchange has revealed plans to launch its own non-fungible token (NFT) marketplace where users can create, buy and sell digital collector’s items.
NFT stands for non-fungible token, it is a “one-of-a-kind” asset in the digital world that can be bought and sold like any other piece of property, but they have no tangible form of their own. The digital tokens can be thought of as certificates of ownership for virtual or physical assets. The digital items include images, music, videos, tweets, works of journalism, real estate – traded on the internet between creators and collectors.
According to NonFungible.com, a website that tracks data on NFTs, the total sales of these tokens soared to more than $2 billion in the first quarter. This figure doesn’t account for the record-breaking $69 million NFT sold by digital artist Mike Winkelmann (AKA Beeple) at Christie’s in March.
The marketplace is aimed at creators and traders of collectables in visual arts, music, games, sports, and more.
According to Binance, the platform would operate two markets: Premium events for select works and high-end exhibitions and a standard trading market that anyone can use to mint new tokens.
The premium segment would take a 10% cut from the proceeds of major auctions, with 90% going to artists. The day-to-day trading market will charge a 1% “processing fee,” while creators “will continuously receive 1% royalty.
Binance’s NFT feature is set to debut in June.