Binance NFT Marketplace Review
It is no more news that Binance is one of the largest ecosystems in the crypto industry. The platform effectively combines various crypto businesses to provide a robust economy where users can access and utilize digital assets for different purposes.
Already, it has a well-oiled crypto exchange, a buzzing staking business, a payment solution, and even a loan system. Hence, it was only a matter of time before Binance made its presence felt in the budding NFT sector. And so, in June 2021, Binance officially launched its NFT marketplace as part of plans to establish itself as an NFT-compatible ecosystem.
Notably, the Binance NFT marketplace has quickly risen in stock, thanks to the existing liquidity that the Binance ecosystem commands and some advantages it has over established NFT marketplaces. In this guide, we will be putting the spotlight on the workings of the Binance NFT marketplace. Also, we will be checking to see if the upsides of using the platform outweigh its downsides.
What is Binance?
Before diving into the operations of the Binance NFT marketplace, it is important to first understand how the ecosystem works and how the NFT platform fits into Binance’s goals. The first thing you should have at the back of your mind is that Binance is one of the crypto companies which started as exchange solutions but quickly expanded their businesses to include other crypto-enhanced services. Therefore, though Binance is widely known for its crypto exchange products, it has since diversified such that users can access several other crypto-focused solutions within its ecosystem.
Today, Binance has become a dynamic ecosystem adept in everything crypto. Apart from exchange-based products, some of the services available to users are:
- Card payment
- Savings account
- Crypto loans
- Liquidity mining
- Mining pool
- Investment solution
- NFT marketplace
Notably, Binance has found success in the majority (if not all) of the sectors listed above. One can argue that this is due to its dominance in the crypto exchange market where it remains the largest digital asset exchange by volume. While there is some truth in this, Binance’s success lies in its propensity to simplify crypto processes, provide diversified products and offer competitive fees. If you check very well, you will find that Binance has a penchant for charging below the average commission collected by competitors. This strategy, among other factors, helped kick off its exchange platform in 2017. It is good to see that Binance has replicated this strategy across all of its offerings such that users can rest assured that they are accessing competitive fees across the board.
Another important factor that has contributed to Binance’s success is that it goes all out to provide a wide array of options to users. Whether you are trading digital assets or staking tokens, chances are that you will access more options when utilizing Binance’s infrastructures.
As such, it was no surprise that the company’s decision to enter the NFT market generated a lot of buzzes. While there are several marketplaces already offering NFT-focused services, the emergence of Binance in this industry was bound to stir things up. The expectation was that the entrance of Binance would further fuel the competitiveness of the NFT space just as it did in the exchange market back in 2017/2018. So the question is: Has the Binance NFT marketplace been able to meet these expectations?
Everything you need to know about the Binance NFT marketplace?
Like all NFT marketplaces, Binance focuses on delivering the tools required to create and trade NFTs. Hence, the platform can be said to be a hub where creators can both mint NFTs and monetize them. Unlike most NFT marketplaces, Binance has been able to kick the ground running because the marketplace is part of an ecosystem that already has a large user base.
In what can be considered a smart move, everyone that already has a Binance account can automatically access the NFT marketplace. In essence, the NFT marketplace is just an extension of the already loaded Binance ecosystem.
You will agree that the success of an NFT marketplace boils down to its ability to attract active NFT users. What is the essence of using a marketplace to create NFTs if potential buyers are not readily available? Or why will NFT collectors opt for a marketplace that does not house a budding community of creators and premium collector's items? Thus, it is easy to see why the Binance NFT marketplace has experienced a smooth start. However, this is not the only reason Binance is fast emerging as one of the top NFT marketplaces presently.
Remember that Binance has a knack for undercutting established competitors to ensure that users have more compelling reasons to adopt its services. It will interest you to know that Binance has rehashed this strategy on its NFT marketplace. By doing so, users can access lower fees while still enjoying the same high-quality features offered by other alternative platforms.
Also, it is worth mentioning that Binance has been able to provide more coverage for NFTs based on Binance Smart Chain. In other words, it offers additional support that is absent on major NFT players.
What are the features of the Binance NFT marketplace?
Having summarized the workings of the Binance NFT marketplace, let us take a closer look at its features.
As expected, Binance provides the tools required to mint NFTs on blockchains. With a click of a few buttons, users can create their NFTs. The good thing about the processes involved is that it is similar to how NFTs are minted on other marketplaces known for simplicity. Hence, when you opt for Binance, you will also be accessing the same level of simplicity attributed to OpenSea and the likes. On the flipside, minting is temporarily restricted to certain creators but will be available to all users soon.
In addition to the minting tool mentioned above, Binance also features a trading interface where users can buy and sell NFTs. Here, you can purchase or list collectibles, artworks, music, videos, in-game assets, and much more. Note that the sell side of the trading platform is also restricted to specific artists. As such, only selected creators can list NFTs on Binance for now. However, the platform is looking to enable this feature to more users soon.
Notably, Binance has designed its NFT marketplace such that it is compatible with NFTs based on Binance Smart Chain or Ethereum. In other words, it is possible to participate in BSC and Ethereum’s budding NFT economy when using Binance’s NFT marketplace. More importantly, Binance allows users to transfer NFTs between these two blockchains. So, users can either capitalize on the explosive but expensive Ethereum-based NFT market or settle for the cheaper BSC network that also seems to have a promising NFT landscape.
Initial game offering (IGO)
One of the NFT features provided by Binance is the initial game offering, which is basically a section on the website where users can access game-based NFTs. The IGO houses all of the in-game assets available on Binance. While exploring this section, we noted that it featured a growing list of game titles.
More importantly, the IGO also served as some sort of a launchpad for NFT games. As such, new NFT games can take advantage of this system to introduce their offerings to potential new users and investors. Binance users get to be the first to access these investment opportunities at their base prices. Think of this as an investment channel like the initial DeFi offering (IDO). The only difference is that this system is specifically tailored for decentralized games utilizing NFT-based in-game assets.
Those familiar with NFT know that the concept of mystery boxes is quickly becoming an important aspect of the NFT movement. The idea is to hide or lock the details of NFTs and have buyers take a gamble by purchasing the unknown digital assets with the hopes of acquiring one of the most valuable of the NFTs in the collection. The mystery boxes of an NFT collection usually go for the same price. Hence, the upside of buying one is that you might be lucky enough to end up with a valuable piece. No one really has an idea of what is inside the mysterious box. It could be any of the rare variants of the NFTs in a collection or even one of the more common pieces. You can only get to see what is inside the mystery box when you buy it.
Those who end up with the rare NFTs can put the digital item up for sale for a much higher price – that is if there is a strong demand for such NFTs. Alternatively, the buyer can decide to sell the unopened mystery box on the market.
Notably, you can get a hint of the rarity factor by checking the collection’s series content. The information embedded here will reveal the probability of getting a rare NFT.
To cut the long story short, Binance has created a whole market segment for mystery boxes. Here, you can find both unlocked and opened boxes, buy them, and put them up for sale.
Event is also a notable section of the Binance NFT marketplace. This is because Binance lists all of its premium and exclusive NFTs here. Therefore, if exclusivity is what you are looking for, then the Event section is where to go.
Please note that several fees can be incurred while using Binance fees. They include:
Deposit and withdrawal fees:
As an active user of Binance, chances are that you will at one point on the other incur depositing fees (for those importing their NFTs into the Binance ecosystem) and withdrawal fees. Both fees are not paid to Binance but the validators of the native blockchain of the NFT in question.
These are the fees incurred when you buy or sell NFTs on the Binance marketplace. According to Binance, sellers and buyers pay a 1% commission on every NFT deal finalized within its ecosystem. It must be said that this is considerably low compared to what some of its biggest competitors charge.
Sellers pay another 1% royalty fee to the original creator of the NFT in question. This is after the NFT has been sold. When compared to other platforms, the royalty fees on Binance are quite low. We are used to seeing the NFT marketplace pay up to 10% of the revenue generated from selling an NFT to the original creator.
The minting fee charged by Binance depends on the blockchain on which the minting is occurring. The gas fees of Ethereum-based NFTs can rise quickly depending on how congested the Ethereum network is. In contrast, the minting fee on Binance Smart Chain is set at 0.000001 BNB.
What are the pros and cons of the Binance NFT marketplace?
The pros of Binance NFT marketplace
It is a multi-blockchain platform
One of the great things about Binance’s NFT marketplace is that it supports 2 blockchains, including Ethereum and Binance Smart Chain. As such, users are not restricted to a single NFT ecosystem. Also, it gives users an option to avoid the exorbitant fees of the Ethereum blockchain. It is also commendable that NFTs are transferable between the 2 supported blockchains.
Its trading fees are low
Using OpenSea’s 2.5% fee as a benchmark, it is clear that Binance has already undercut arguably the most prominent marketplace in the NFT landscape. By charging lower fees, Binance has shown that it is an ideal alternative to some of the established platforms.
Users can access a vast and dynamic crypto ecosystem
Another benefit of using the Binance NFT marketplace is that it is part of a vast crypto economy, which houses several products, including a crypto exchange. Since the NFT marketplace is one of the wide arrays of solutions provided by Binance, you can capitalize on the dynamic payment system available on the website. You can deposit funds with traditional payment methods like debit/credit cards and then go-ahead to convert the deposited fiat to cryptocurrencies, specifically BNB, BUSD, and ETH. Apart from the dynamic payment system available to users, the NFT marketplace also integrates the robust security infrastructure utilized by the Binance ecosystem.
The cons of Binance NFT marketplace
It is restrictive
As mentioned in this guide, only selected creators can mint and sell NFTs on Binance for now. While this is a given, the platform plans to unlock these features to all its users sometime in the future.