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Crypto exchange Binance to launch an NFT marketplace

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Cryptocurrency exchange Binance on Tuesday announced that it aims to introduce its own marketplace where users can create, buy and sell NFT.
Total sales of these tokens increased to more than $2 billion in the first quarter, according to NonFungible.com, a website that tracks data on NFTs. And that figure doesn’t even account for the record-breaking $69 million NFT sold by digital artist Mike Winkelmann (AKA Beeple) at Christie’s in March.
Binance, the world’s largest crypto exchange by trading volumes, said its platform would operate two markets: A premium venue for top NFT auctions and 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, Binance said, with 90% going to artists. The day-to-day trading market will charge a 1% “processing fee,” while creators “will continuously receive 1% royalty,” according to Binance.
Binance NFT feature is going to debut in June. The exchange has launched a lander page for now which will let artists contact the firm about potential partnerships.
“Our aim is to provide the largest NFT trading platform in the world with the best minting, buying and exchanging experience, by leveraging the fastest and cheapest solutions powered by Binance blockchain infrastructure and community,” said Helen Hai, head of Binance’s NFT project.
Launching NFT market by Binancemarks a challenge to Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss. Gemini operates its own NFT marketplace called Nifty Gateway, which has hosted auctions from big names such as Eminem and Grimes. It would also open up a new revenue stream for Binance, which has benefited notably from the surging interest in bitcoin and other digital currencies.
Coinbase, the largest crypto exchange in the US, went public on the Nasdaq earlier this month. Like Binance, Coinbase has gotten a significant boost from rising crypto prices. Bitcoin, the world’s most popular digital currency, soared to an all-time high of nearly $65,000 ahead of Coinbase’s debut. It’s down almost 16% from that level now, however.
But there have been worries over signs of froth in the market. Some have compared the NFT boom to the rise of initial coin offerings (ICOs), in late 2017 and early 2018. ICO mania resulted in a number of scams and many projects were ultimately abandoned. Meanwhile, dogecoin spiked to a record high above 45 cents a couple weeks back, stoking fears of a bubble in the crypto market.

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