What Happened: Binance, the world’s largest crypto exchange by trading volume, said it will launch an NFT marketplace in June, CNBC has reported.
The platform would focus on two distinct markets: a premium venue for high-value auctions and a standard trading market where users can mint new non-fungible tokens.
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According to Binance, the premium venue would take a cut of 10% from the proceeds of major auctions, while the remaining 90% would go directly to the artists.
The standard trading market, on the other hand, would charge a 1% processing fee to creators who will thereafter continuously receive a 1% royalty.
The exchange has already set up a landing page for the upcoming NFT platform, encouraging users to get in touch regarding NFT drops and potential business opportunities.
Why It Matters: According to recent data, traction around NFTs and NFT marketplaces has been declining since its peak in the months of February and March.
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Last week’s NFT trade volume was just $8.4 million across the top platforms, including NBA TopShot and CryptoPunks.
This a significant drop when compared to mid-February’s weekly trade volumes that exceeded $195 million.
With over 50 million users across 180 countries, Binance’s new platform could potentially be a significant boost to the NFT industry.
“Based on the user number, the Binance NFT platform could attract millions of potential NFT collectors in the world,” said Helen Hai, head of Binance’s NFT project.
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“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.”