Some scams are easy to see, but others might look like a worthwhile investment opportunity. Here are some crypto red flags to look out for.
If you’re new to the world of NFTs and want to dip your toes in without diving headfirst into the industry, the best place to explore the scene is to look at the top NFT marketplaces. In this, we explore what an NFT is and the top marketplaces in the space.
What are NFTs?
Non-fungible tokens, referred to as NFTs, are digital assets that are stored on a blockchain. Unlike other digital assets, NFTs are not interchangeable. This means each NFT is unique and has a different value.
For example, one dollar is equal to another dollar and one Bitcoin is equal to another Bitcoin. These are fungible assets. Non-fungible means the assets are unique and not equal in value to the next. For example, one painting by an artist is not priced the same as another by the artist.
NFTs can represent anything from digital art to in-game items and real-world assets like property or tickets.
Some of the most popular NFTs are those that represent digital art. Depending on the NFT, there is a massive amount of value that can be found in the digital asset. The reason that NFT digital art is so valuable is because it is scarce and unique. There are only a limited number of NFTs that represent each piece of digital art. This gives the NFT the potential to become very valuable over time.
The unique nature of NFTs also means that they can be used to represent real-world assets. For example, an NFT could represent a ticket to a concert or a piece of land. The owner of the NFT would then have the right to use the asset that it represents.
NFTs are still considered to be an emerging technology and concept, but they have already begun to transform how digital assets are seen.
Since NFTs are tokenised on the blockchain, their ownership cannot be modified or erased from the network upon which they are built. This makes them incredibly valuable, as they can be passed down from one generation to the next with complete confidence.
Non-fungible tokens came to the fore in the cryptosphere in 2021. Several NFT marketplaces emerged along with the boom. These NFT marketplaces allow users to mint, list, buy, and sell crypto arts and digital collectibles. Very much like decentralised exchanges and peer-to-peer trading platforms, most of these NFT marketplaces do not directly hold NFTs for users. Instead, they serve as a platform that connects buyers to sellers.
Top 10 NFT marketplaces in 2022
OpenSea is the largest NFT marketplace in the world by trading volume. The platform supports the sale of a wide variety of NFTs, including those from Ethereum, EOS, Filecoin, IPFS, and more. OpenSea also has an exchange where users can trade NFTs for other crypto assets such as ETH and BTC. Opensea is built on Ethereum, but it has integrated Polygon for reduced gas fees.
SuperRare is an Ethereum-based NFT marketplace that works with a few select and reputable NFT artists. The artists on SuperRare are carefully curated to ensure that only the highest quality NFTs are sold on the platform. SuperRare also has an auction feature that allows users to bid on NFTs with other crypto assets. Superare charges artists a 15% fee on their primary sales generated through the platform.
Rarible is another Ethereum-based NFT marketplace that focuses on user-generated content. Rarible allows anyone to create and mint their own NFTs, making it a great platform for aspiring NFT artists. It also has an auction feature that allows users to bid on NFTs with other crypto assets. Rarible charges artists a 10% fee on their primary sales generated through the platform.
Rarible is a community-owned decentralised NFT marketplace. Rarible supports three different blockchain networks: Ethereum, Flow, and Tezos. However, the platform is currently only available on Ethereum.
Axie Infinity marketplace is connected to the popular blockchain game with the same name. Axie has one of the most popular gaming-focused NFT marketplaces. The Axie marketplace is dedicated to its play-to-earn video game, which allows users to create, buy, and sell Axie and other in-game digital collectibles. Axie Infinity is built on Ronin. Ronin is a layer 2 side-chain that’s built on top of the Ethereum network. Ronin aims to provide faster transaction speeds and lower fees than the Ethereum network.
Nifty Gateway is managed by Gemini, the US-based digital asset exchange and custodian founded by Tyler and Cameron Winklevoss.Nifty Gateway was launched in October 2018 with the mission to make it easy for anyone to buy, sell, or use NFTs.
The Nifty Gateway marketplace is popular for selling the artworks of some of the most popular artists in the world. Some of the artists include Beeple, Kadavre Exquisiste, and FEWOCiOUS. The Nifty Gateway also has a blog that publishes articles related to the world of NFTs.
Solanart is a full-fledged NFT marketplace built on the Solana network. It is the first NFT marketplace that allows for instant and free transactions. The platform also has a built-in wallet that supports all the major ERC-20 tokens.
Solanart was launched in March 2021. It allows users to create, buy, and sell several Solana-based NFTs. The most popular NFTs on the platform include digital art, 3D models, and audio files.
Binance NFT Marketplace
This NFT marketplace is built on the Binance Smart Chain (BSC) network. It is one of the most popular NFT marketplaces due to the low transaction fees and the large selection of NFTs.
The Binance NFT Marketplace was launched in February 2021. It is a decentralised marketplace that allows users to buy, sell, or trade several BSC-based NFTs. The most popular NFTs on the platform include digital art, 3D models, and audio files. Binance NFT Marketplace currently has more than 2.5 million NFTs available on its platform for trading. Interestingly, the marketplace has the lowest transaction fees in the industry, with 1% charged on all NFT sales.
NBA Top Shot
NBA Top Shot is an NFT marketplace that caters to gamers and NBA enthusiasts. It is the first and only licensed platform that allows users to buy, sell, or trade official NBA in-game highlights in the form of digital collectibles. The platform was launched in October 2020 and has since become one of the most popular NFT marketplaces due to the increasing popularity of basketball and gaming. Currently, there are more than 1.6 million registered users on NBA Top Shot and the platform has processed over $500 USD million in transactions.
Decentraland is an NFT platform for the play-to-earn virtual world built on the Ethereum blockchain. The platform was launched in February 2020 and allows users to buy, sell, or trade virtual land and experiences. Decentraland is one of the most popular NFT marketplaces due to its wide range of features and use cases. The platform has processed over $200 million USD in transactions and currently has more than 600,000 registered users.
Stashh prides itself as the first marketplace for “secret” NFTs. The platform utilises the ERC-721 standard and focuses on providing a safe space for artists and creators to sell their work. Stashh was founded in 2019 by Esteban Ordano and Jack Robinson and is based in Gibraltar. The platform has processed over $100 million USD in transactions and currently has more than 200,000 registered users. Stashh supports different categories of Secret NFTs ranging from gaming to art to sports and NSFW.
These are some of the top NFT marketplaces that are expected to lead the way in 2022. With the rapid growth of the NFT industry, we can expect to see even more platforms emerge in the near future.