The non-fungible token (NFT) market has been growing at an alarming rate, hence attracting more projects into the marketplace. According to a report on Nasdaq, the NFT market did about $330 million in sales volume in 2020. However, the global collectible market is valued at $370 billion. Meanwhile, in 2021, the NFTs market capitalization has grown by 1785% due to an increase in demand. In fact, 2021 has witnessed an explosion of the NFT market. A report on Reuters cited that the non-fungible market grew by $2.7 billion within the first half of 2021. The explosion of the NFT market has created a completely new market that keeps growing at an alarming rate.
Recently, NIFTY NFT announced plans to launch its own artist-friendly non-fungible token (NFT) marketplace. They seek to offer artists the opportunity to be rewarded handsomely for all the work they put into creating their work. The new marketplace will also enable financial benefits for both NFT owners and collectors.
Overview of the NIFTY NFT Marketplace
The NIFTY NFT marketplace is an upcoming NFT marketplace that helps creators maximize the true value of their non-fungible tokens. The marketplace will be powered by the blockchain project known as NIFTY NFT. Its NFT marketplace will be based on the mechanism whereby 50% of the value of each NFT (in ETH) will be locked. The idea is to increase the value of all sought-after non-fungible tokens while at the same time keeping the less fancied NFTs at a lower price. The mechanism will help to mitigate against the build-up of unwanted spam NFTs that currently flood the existing NFT marketplaces.
The lock mechanism will be very beneficial to new users who don't understand how to determine the different values of non-fungible tokens. It also helps to protect users from losing all their investments as their purchases will contain actual value. This highlights the "token" aspect of the non-fungible token. With its features, services, and roadmap, the NIFTY NFT marketplace is poised to rival the current leading NFT marketplace (OpenSea).
How the NIFTY NFT Marketplace Works
Before you can sell an NFT on the NIFTY NFT marketplace, you will have to use the NIFTY decentralized application to create your NFT and then list it on the platform. Once someone buys your NFT, you will get 50% of the total value, while the remaining half will be locked (in ETH) on the NIFTY NFT marketplace. On the other hand, the buyer of the NFT can decide to relist it with the 50% locked in ETH value. Once anyone buys it, the new owner will have the NFT with 50% of its total value in ETH in addition to the 50% that was previously locked. Aside from helping creators sell their NFTs, the 50% locking mechanism ensures that NFTs gain their true value in the marketplace and eliminate the fake or spam NFTs.
The Impact of the NIFTY Token on the Marketplace
According to the NIFTY whitepaper, the NIFTY token is vital in its NFT marketplace, especially the artist royalty program. Each time an NFT is sold on the NIFTY NFT marketplace, the original creator will receive 5% royalties from the current sale value. However, the original creator's royalty percentage depends on the number of NIFTY tokens that the creator holds. The holders of the NIFTY token will be eligible to receive up to 70% of the NFT's current sale value against the original 50%. This will certainly serve as an incentive for traders to always buy and hold the token, thus adding to its overall utility and value appreciation.
The NIFTY token is an ERC-20 standard token released on June 25, 2021. It has a circulating supply of 6.2 million and currently has over 1,600 holders.