Does the exchange break into the NFT market or take the lead?

September 7th 2021 can be said to be the “year of NFT” visible to the naked eye: from the popularity of Ape BAYC to the admission of Hollywood brokerage giant UTA, to Yao Ming’s limited edition wine auction, and payment giant Visa purchase CryptoPunks , the development speed of the global NFT industry this year is very fast to the naked eye. Even the ” V God ” exclaimed that NFT would become the most exciting Ethereum use case. What’s more worth mentioning is that the total market value of NFT tokens is still hitting new highs repeatedly, approaching $30 billion.

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But frankly speaking, although the current NFT market is growing rapidly, its volume is still small compared to the broader encryption market. Compared with the total market value of cryptocurrency of 2 trillion US dollars, the total market value of NFT tokens can be said to be a little insignificant. It can be seen that there are still large-scale crypto users who have not yet entered this field.

In fact, in the summer of last year, DeFi has already shined, and a group of decentralized exchanges (DEX) have caught up with this wave of enthusiasm. They have successfully distributed a “big piece of cake” from the encrypted trading market, and many established centers The chemical exchange was caught off guard. However, in this year’s “NFT boom”, you will find that the situation has changed. Those leading cryptocurrency exchanges have already deployed in advance and are ready to actively explore this emerging field, hoping to help and promote the further development of the NFT market.

Enter the top cryptocurrency exchange to achieve a win-win situation with NFT

It is not difficult to find that with the entry of leading exchanges, they have successively launched one-stop trading platforms that focus on the NFT field and support Ethereum and other public chains. Users can freely create and trade NFTs on these platforms. Such an approach can effectively lower the threshold for NFT asset trading and enhance the trading experience, bringing advantages such as sufficient liquidity and convenient operation, thereby injecting more vitality into this emerging market.

In fact, the cryptocurrency exchange itself is a digital asset service platform. Now it has gained tens of millions of users worldwide. If these users can be diverted to the NFT market, it will definitely help the industry. Push effect. Conversely, the NFT market will also bring more fresh blood to centralized cryptocurrency exchanges, especially users in the fields of art, sports, collectibles, etc. will also be attracted to cryptocurrency exchanges, which will help the exchange to further Expand the size of the user base, and then achieve a win-win situation.

Where is the latecomer advantage of the top cryptocurrency exchange?

Although some of these leading cryptocurrency exchanges have launched their NFT platforms a long time ago, there are many bright spots compared with the “traditional” vertical NFT platforms, and although they are late-comers, they are not inferior.

First of all, risk control is the weakness of decentralized cryptocurrency exchanges. In contrast, the probability of transaction fraud and deception activities in centralized cryptocurrency exchanges is significantly smaller, because compliance is the head. The exchange’s top priority. We can see that these top exchanges have their own complete KYC strategies, so they can better avoid bad trading activities such as transaction fraud, and these measures can make users more at ease when trading NFTs, and obtain safe, stable and credible service.

Secondly, the NFT platform based on the head exchange can make NFT casting no longer the exclusive platform or institution, so that more people can benefit from the development of NFT. Users are allowed to create their own NFTs on the platform. After completion, they can not only view the NFTs they created, but also directly put them on the shelves for sale. This greatly reduces the entry barrier, attracts more small and medium-sized users to enter the market, and helps the ecosystem to further expand and promote NFT is popularized and applied and accepted by the mainstream. Not only that, in addition to minting and trading NFTs created on such platforms and the Ethereum blockchain, users are also allowed to import NFTs created on other platforms. This approach not only increases the value of the two chains at the same time, but also It can achieve the purpose of “user interoperability”: on the one hand, it will bring a large number of users in the Ethereum system into the new ecology, and at the same time bring a continuous source of incremental users for the NFT platform; on the other hand, more outstanding users on the platform The NFT project also continuously delivers energy to Ethereum, reaching a wider audience of users, and ultimately realizing mutual benefits in the whole ecosystem.

In addition, we can regard the exchange-based NFT platform as a “primary market”. NFT creators have gained great flexibility in generating revenue in this market. They can set their own royalties on the platform, which means The commission percentage rate charged by the subsequent exchange of the work is completely set by the creator “freely” without any restrictions.

On the other hand, the NFT trading platform supported by cryptocurrency exchanges can effectively support NFT production, primary and secondary market sales and purchases, and the entire value chain of NFT can be fully realized on this platform.

In contrast, some traditional vertical NFT markets do not have “UGC” (User Generated Content)-that is, users cannot cast NFTs, leading to a fault in the entire value chain. Nowadays, this “one-stop production and sales” model allows users to “concentrate support in one place,” which not only allows various NFT projects to be cast and created according to their own characteristics, but also enhances the liquidity of NFTs, attracts and attracts various projects. Users, speculators and collectors enter the market, and then better provide related services, service quality and efficiency will become higher.

The last thing worth mentioning is the advantages of ecological resources. These platform ecology all have their own resource advantages. Generally speaking, they are positioned as a high-performance transaction public chain and focus on enabling NFTs. Not only can they effectively implement encryption-related business applications, but also ensure the security of decentralized transactions. At the same time, it can meet the needs of different application scenarios such as NFT. Users and developers within the ecosystem can also provide strong support for the development of the NFT market.

It is worth mentioning that the bottom layer of some public chains can also achieve cross-chain operations, which effectively solves a problem that plagues the development of the NFT industry, that is, many developed NFT projects are often restricted to a certain blockchain On the Internet, just like “ecological islands”, it is difficult to capture resources and users on other blockchains. Since then, the expansion of the NFT project has opened up the imagination.

Summarize

With the rapid development of the NFT market, in the future blockchain ecology, NFT will surely play an irreplaceable role. As an important part of the digital economy ecology, the exchange will undoubtedly be an important builder of the future digital economy. It can be said that whoever can make good use of the NFT is likely to usher in the first batch of dividends of the times.

Take a look at the top exchanges, they have already begun to try to provide users with better products and better services. If you want to stand on this new outlet, then take this ride!

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/does-the-exchange-break-into-the-nft-market-or-take-the-lead/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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