Process of NFT Marketplace development

What is NFT

The very name of this type of tokens explains their specificity – they are called non-fungible because of their uniqueness. “Unlike cryptocurrencies or fiat money,“ NFT – token A ”cannot be freely converted into“ NFT – token B ”at a certain rate. Such tokens are not identical entities, unlike, for example, 1 ETH or 1 BTC. This is the ‘uniqueness’ of the NFT token, ”Nikolai Avramov, co-founder of Defi Agency, told Bloomchain.

“Each such token is unique, it reflects the right to own a certain digital item – an object of digital art, a game card, a music track, game assets, domains, and so on. Now he is showing a large number of cases using nft marketplace development company  in various industries, ”Masha Vyazemskaya, head of public relations at Rarible, said in a conversation with Bloom. There are many NFT platforms out there. Some are highly specialized marketplaces and differ in the categories of objects sold: somewhere you can find exclusively items for video games, somewhere you can find digital art.

Well-known services include OpenSea, Rarible, Niftygateway and SuperRare. The platforms take a commission in ether (this is the name of the exchange unit of the Ethereum cryptocurrency – on the basis of its infrastructure, non-fungible tokens were created.

There are already dozens of them, but there are not many really popular marketplaces where you can make money on NFT. Most of them use the Ethereum blockchain. The most popular platforms are Rarible and Foundation.

Rarible is the world’s most popular open source platform. Foundation is a closed marketplace that cannot be accessed without an invitation from another platform participant.

“There are competitors to the Ethereum blockchain development services, for example Binance Smart Chain. An NFT marketplace was recently launched on the Binance exchange, but access to it for independent artists to create and sell art is still closed. Of the most popular platforms, the choice is small, so I published my collection on another platform – Refinable on Binance Smart Chain, as well as on Rarible on Ethereum, ”the artist shares his experience.

These marketplaces use a variety of trading models:

  • auctions where the seller sets the starting rates and the timing;
  • selling NFT at a fixed price.

A non-fungible token can be sold as a single copy or in several, and this will affect its value.

Preparation for sale

Before you start trading, you need to determine the moments that will affect the further plan of action and directly on the income from the sale.

Let’s answer ourselves the following questions:

  • at what price to sell NFT;
  • what platform to choose for sale;
  • how much money to invest.

Price. “The valuation of NFT tokens is a subjective question that can only be answered by the author. There are no clear rules for determining the value of digital art yet, because the field is still too young and it has not been enough time for the development of standards. But practice shows: the fewer copies of one NFT, the higher its value, ”says the artist.

Methods for valuing artworks in non-fungible token format are no different from methods for setting the value of physical art.

Follow the instructions of the NFT platform

Each NFT marketplace has specific instructions that creators must follow in order to create a non-fungible token. Redell notes that the development of blockchain technologies and the emergence of NFT services (many of which appeared in the past year) coincided with other processes in society and the economy. A large number of new players have entered the stock markets (and cryptocurrency markets), including lay traders and hobbyist investors.

The democratization of the stock market (the apotheosis of which was the situation around the shares of the Gamestop company) coincided with a pandemic: finding themselves in self-isolation, alone with their devices, many people began to pay attention to new financial instruments.

Second, there are two possible options for selling NFTs: fixed price or auction and go now.