NFT Marketplace

Non-fungible tokens (NFTs) are another trend that has been growing in multiple folds. They are a type of digital asset developed over the blockchain network, allowing them to exist as unique assets. They are similar to the concept of a trading card with the ‘non-fungible’ factor, making them unique. 

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Technically, anything can be sold as an NFT, and the ownership of these digital assets is what makes them unique. NFTs can range from digital art and music to collectibles and video footage. NFT marketplaces are platforms where NFTs can be purchased, traded, sold, and sometimes minted. 

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Key Market Drivers

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NFTs have highlighted a 60x growth in revenue, growing from a $41 million industry in 2018 to $2.5 billion in the first few months of 2021. Adding to it, they have caught the attention of some of the most prominent brands and celebrities like Eminem and Nike, making it one of the most distinctive investments you could come across.  

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Mark Cuban, Dallas Mavericks owner and billionaire Shark Tank investor, has been a big advocate for NFTs. He has invested in collectibles such as Bored Ape, backed NFT marketplaces Mintable and SuperRare, and NFT tracker CryptoSlam. GaryVee, an outspoken advocate for NFTs, launched his first NFT collection "VeeFriends" in May of 2021 to provide a "blueprint" for others on how to bring value using NFT technology.

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Opensea is a name synonym to NFTs. Opensea, which was the first NFT marketplace allows for buying, selling, and trading of digital goods. Selling thousands of NFTs spread across hundreds of categories, the platform allows buyers to make purchases in exchange for Ethereum tokens from their linked wallets. 

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Besides Opensea, other prominent examples of the NFT marketplace include Axie Marketplace, Rarible, and SuperRare.

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Adoption 

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Corporations such as eBay, GameStop, and Coinbase are jumping on the NFT frenzy . The New York Stock Exchange reportedly filed a trademark to register their “NYSE” as a marketplace to deal with non-fungible tokens. The recent adoption of NFTs by a 230-year old institution highlights a great future for these digital assets. 

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Key Challenges

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Similar to any other industry, the NFT marketplaces have also been under the spotlight for negative criticism. As per the latest news, LooksRare NFT marketplace has held numerous transactions due to the following challenges: 

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Sale of Counterfeit NFTs

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Given their nature, NFTs can easily be minted by anyone since the ownership of the token doesn’t generally refer to the ownership of the item. As a result, people have started selling NFTs that don’t belong to them or are unauthorized sets resembling the original.  

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Wash Trading

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Another problem with the NFT marketplace is the wash trading practices. This specific act involves a similar party involved in buying and selling digital assets in an attempt to manipulate prices.   

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