FTX challenges OpenSea’s hegemony, launches top ETH NFTs

By: Daniela Kirova
Daniela Kirova
Daniela was born in Bulgaria, grew up in Chicago, and then moved to Michigan to attend the University of… read more.
on Dec 1, 2021
  • FTX is undercutting OpenSea on fee structure
  • FTX-hosted Solana-based NFT debut failed to meet expectations
  • Exchange attracts users who have been put off by Ethereum’s huge gas fees

Crypto exchange FTX launched trading for some of Ethereum’s (ETH/USD) top non-fungible tokens (NFTs) today, December 1, on its U.S. marketplace. FTX is undercutting OpenSea on fee structure. They will be charging 2% compared to OpenSea’s 2.5%.

FTX beating Coinbase in NFT race – for now

The biggest crypto exchange in the US is launching its NFT marketplace soon. FTX.US President Brett Harrison told CoinDesk:

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We’re starting with the top 10 – let’s call it – profile-pic, avatar-type projects, and then we’re going to move on to the generative artwork and then go for the one-of-ones with basically the top volume.

FTX’s Solana-based debut failed to meet expectations

About a month ago, FTX hosted a Solana-based NFT debut that failed to meet expectations, which were that the rival blockchain’s speed and low cost would beat Ethereum. However, stakeholders were quite disappointed over the low user uptake.

While the Solana (SOL/USD) ecosystem hosts a number of “blue chip” projects, it doesn’t have a reliable marketplace for NFT trading yet. According to critics, it’s typified by a scattered array of little-known marketplaces, which the projects themselves sometimes host. Their fees aren’t to be overlooked either. Both Solanart and Solsea charge 3% of every NFT sale amount.

Banking on withdrawal fees

FTX may be looking to compensate for lost time by adding Ethereum NFTs. In addition, they are banking on withdrawal fees in an attempt to attract users who may have been put off by Ethereum’s huge gas fees.

According to Harrison, FTX.US will save users money by taking custody of all Ethereum NFTs listed unlike market leader OpenSea, who let creators control their NFTs until they are sold. He commented:

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.

Harrison added that users would eventually use non-custodial wallets to interact with FTX.US NFTs, but it made more sense to embrace accessibility first. OpenSea will keep their advantage on breadth as anyone with a wallet there can list any NFT they like.

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