FTX joins the NFT bandwagon
The nonfungible token (NFT) market has grown massively over the past few months, gaining adoption in various sectors such as sports, art, music, and movies. The adoption has created a new market and cryptocurrency exchanges and launching platforms that would allow people to buy and sell NFTsHong Kong-based crypto exchange FTX is the latest to enter the NFT market. The company, headed by billionaire Sam Bankman-Fried launched its marketplace for NFTs earlier this week. FTX’s NFT marketplace operates on the Ethereum and Solana blockchains. Ethereum is the most popular and houses most of the NFTs currently in existence. The Solana blockchain, on the other hand, uses a proof-of-stake protocol that consumes less energy than Ethereum.
The FTX NFT marketplace is available to citizens in virtually all parts of the world, except the United States. US traders will have to use a separate NFT marketplace available on FTX US, the exchange’s dedicated United States division.
NFTs have gained popularity because of their unique nature. They are units of cryptocurrency attached to files online and sold as proof of ownership. NFTs provide a way of ascribing value to digital work such as art and journalism.
Crypto exchanges entering the NFT market
FTX is not the first cryptocurrency exchange to enter the NFT market. Gemini, the exchange owned by the Winklevoss twins, bought the NFT startup Nifty Gateway two years ago, allowing it to be the first major cryptocurrency exchange to enter the market. The world’s leading crypto exchange Binance also launched its NFT marketplace a few weeks ago.NFT’s adoption has come majorly in the art world, with auction houses selling NFTs for millions of dollars. The Beeple NFT sold by Christie’s remains the most expensive, as it was sold for nearly $70 million.
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