FTX.US Adds Ethereum Collectibles to NFT Marketplace
The rollout comes about a month after the exchange’s largely underwhelming Solana-based NFT debut.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/74QXP3UELNDSNPFF77VIKCW5YQ.jpg)
(Bored Ape Yacht Club, modified by CoinDesk)
FTX opened trading for some of the Ethereum network’s top non-fungible tokens (NFTs) on its U.S. marketplace Wednesday, mounting a challenge to market leader OpenSea and beating rival exchange Coinbase to the punch.
“We’re starting with the top 10 – let’s call it – profile-pic, avatar-type projects, and then we’re gonna move on to the generative artwork and then go for the one-of-ones with basically the top volume,” FTX.US President Brett Harrison told CoinDesk.
The staggered rollout comes more than a month after FTX.US’s largely underwhelming Solana-based NFT debut. Company officials who bet that the speed and low cost of the Solana blockchain could best Ethereum, where most blue-chip NFT projects live, were “disappointed” by low user uptake, a source at FTX.US told CoinDesk.
Exchanges race to NFTs
By adding Ethereum NFTs, FTX.US is looking to make up for lost time. It’s undercutting rival NFT exchanges on fee structure (2% compared with OpenSea’s 2.5%) and subsidizing withdrawal fees in a bid to woo users who may be spooked by sky-high Ethereum gas fees.
Another big difference is on the custodial front. Harrison said FTX.US will take custody of listed Ethereum NFTs, which he said will save users money. OpenSea leaves owners in control of their assets until sale.
“By not requiring gas for doing things like bids, we’re going to see a lot more price action and price discovery on the platform, and we hope that in general attracts liquidity,” he said.
Read more: Coinbase Follows FTX.US Into NFT Trading
Users might eventually use non-custodial wallets like MetaMask for Ethereum and Phantom for Solana to interact with FTX.US NFTs, Harrison said. He said there’s more value in embracing accessibility first.
OpenSea, where anyone with a wallet can list any NFT they like, will retain an advantage on breadth. FTX.US plans to vet all Ethereum NFT projects before listing to ensure they don’t run afoul of securities laws or aren’t counterfeit rip-offs.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.