After launching its NFT marketplace, the exchange also implemented a paywall to curb spam incidents.
Sam Bankman-Fried, CEO of FTX, announced in a notable way that the crypto exchange has launched its own marketplace for non-fungible tokens (NFTs). He introduced the platform with a simple “test” artwork he created himself. That piece attracted escalating bids and was sold this morning for $270,000. In his announcement, the FTX CEO explained that the new NFT platform is currently available only to U.S. customers and allows users to buy, sell, and mint their own NFTs.
The new marketplace supports cross-chain trading between Ethereum and Solana. Bankman-Fried added that additional features will be rolled out soon. He listed several forthcoming capabilities, including deposit and withdrawal functions. Users will also be able to transfer NFTs from external sources onto the FTX platform.
This announcement marks a shift from FTX’s previous model, which limited users to storing and viewing assets. With the improved operating model, users will be able to sell their NFTs through the exchange by utilizing the deposit and withdrawal features.
The marketplace initially launched with open access for everyone, but shortly after launch it experienced several spam submissions. In response, the exchange introduced a one-time fee of $500 for users who wanted to participate.
“Because of the massive number of submissions, many of which were just a picture of a fish, we are now charging a one-time $500 fee to submit NFTs,” Bankman-Fried tweeted.
Unsurprisingly, the change was unpopular with users. After persistent pushback from customers, FTX removed the $500 fee and replaced it with a fairer flat $10 charge for all users submitting NFTs.
Under the revised fee structure, FTX intends to charge both sides of a sale. Buyers will be charged 5% and sellers an additional 5%. The exchange advised potential participants to proceed only if they understand the marketplace rules, noting that all NFT purchases are non-refundable.
Many industry players have increasingly embraced NFTs and offered customers interactive experiences with them. Binance, the world’s largest crypto exchange by volume, announced its own NFT platform in June of this year in collaboration with artists, athletes, and other creators.