Cryptocurrency exchange Binance has finally entered the crypto art market. Binance launched its NFT marketplace on 24 June 2021 featuring digital artwork auctions by Andy Warhol — the American artist who inspired the pop art movement and Salvador Dali — the Spanish artist known for the fabled artwork “The Persistence of Memory”.
The marketplace lists all major genres of NFTs like gaming (sports and esports), collectables, entertainment and art.
Binance’s NFT marketplace launch will begin with the “Genesis” and “Mystery Box Series 1” auction event. Genesis will feature works from Warhol & Dali and will continue for five days till 29 June 2021. This marketplace will function primarily on the Binance Smart Chain using the BEP-721 tokens (Binance’s NFT token standard). Additionally, it will also support NFTs on the Ethereum network.
What is an NFT Marketplace?
An NFT Marketplace is a marketplace for NFT. So far so good. But what is an NFT?
NFT is an acronym for “Non-Fungible Tokens”. Something which is fungible is replaceable. For instance, one kilo of 24 karat gold is – at least in theory – replaceable with any other kilo of 24 karat gold. When something is non-fungible, it means that it is unique, and not replaceable with any other item out there.
Although NFTs are conceptually similar to cryptocurrencies, these digital assets might represent antiques & artworks, collectables like trading cards, and other items with unique features. These tokens are stored cryptographically in a blockchain network for authentication and validation. Even when transacting, each token is sold as a whole, unlike cryptocurrencies which are divisible into smaller units. NFTs can be duplicated by the artist and each additional copy can be sold separately (but the total number of duplicates will then always be known).
Binance NFT Marketplace Focus
Binance is a well-known name in the digital assets domain. This cryptocurrency exchange has played an important role in promoting crypto adoption, and there is an expectation that it may continue to do so for NFTs too. Binance NFT marketplace will feature three distinct product lines — Events, Marketplace and the Mystery Box.
Events, as the name suggests, will bring digital collectables from leading artists globally under one roof. Artists and enthusiasts can transact in these exclusive events to buy/sell premium crypto art. The marketplace is a much more open section of Binance Marketplace. Approved artists can mint their art and put it for sale (at a fixed price) or auction (to determine the highest price). The final product line, the Mystery Box, is a collection of miscellaneous and rare digital art.
Binance NFT Marketplace Fees
As Binance Smart Chain and Ethereum both charge network fees for executing transactions, it is obvious that gas fee is an integral component when buying or selling an NFT. When NFTs are minted on Binance’s marketplace, the artist has to pay the respective fees in Binance Coin (BNB).
We could not locate the exact amount of fees for each transaction on the Binance NFT marketplace (whether it is a buy or sell transaction).
However, the Binance NFT announcement in April 2021 clarified that the portal will charge the artwork creator a 1.00% processing fee for listing.
Layout of Binance NFT Marketplace
Different NFT Marketplaces present their NFTs, the latest bid and the remaining time of an auction etc. in different ways. What you are most comfortable with viewing and using is up to you and no one else. The following picture is a print screen from the browsing overview at Binance NFT Marketplace (as of 24 June 2021):
Individual artworks are displayed as follows. Here’s a screenshot of an animated image of the Club Atlético Mineiro’s jersey listed on auction. You can see a detailed description along with bidding history, contract address and token ID.
Types on NFTs on Binance NFT
Binance NFT offers seven categories of NFTs, plus a mystery box:
- Art — The art category features artwork from both known and unknown artists. Krista Kim, Ali Sabet, Kefan404, Palm Instinct and Joseba Elorza are some of the most popular artists who have their works listed in this category.
- Collectibles — Designated for collectible NFTs, this section features a range of collectible digital assets. The Nyan Sum Cards by Mighty Jaxx are some of the items available in the collectibles category.
- Entertainment — Two-time BRIT Award winner Lewis Capaldi is one individual whose work you might find in the entertainment category. Lil Yachty and Kyle are other popular musicians who have their work listed in this category.
- E-sports — The e-sports category lists esports items and content. E-sports team eStarPro is one of the first e-sports teams to have its content listed in this category.
- Gaming — The gaming category features gaming-related items from creators all over the world. There are hundreds of gaming items for purchase from the platform.
- Premium — This category features premium NFTs. For example, the State Hermitage Museum launched a premium NFT Auction Collection on the Binance NFT Marketplace over the course of one week in August and September 2021.
- Sports — The sports category, as the name suggests, is all about sports items. For example, digital assets related to sporting greats such as Michael Owen, José María Gutiérrez Hernández and Alphonso Davies are listed within this category. NFT tickets are also listed.
- NFT Mystery Box — These have a surprise NFT. They are sorted into rarity levels. On the navigation bar of Binance NFT, select Mystery Box to browse the collections. After you buy one, you’re redirected to the product page where you can select Click to Reveal and then Open Box.
How to buy NFTs on Binance NFT marketplace
There’s no need to connect a third-party wallet to make purchases on Binance NFT marketplace — your verified Binance account and crypto is all you need. You’ll need a crypto wallet to store or move digital assets in or out of Binance NFT.
To buy NFTs on Binance NFT, follow these steps:
- Get a Binance account. Go to Binance.com and select Register. Account creation is free, and you need an email and password. If you’ve been referred by another user, enter the referral ID upon signup.
- Verify your account. To verify your account and identity, select User Center then Identification. Verification levels determine what you can do on the platform. Select Get verified and your verification level (they vary by country). Complete the verification level with identification documents like a driver’s license, selecting country and entering personal identification information.
- Buy or deposit cryptocurrency. The Binance NFT marketplace requires BNB, BUSD or ETH for purchases, and BNB for gas fees. If you use the Binance crypto exchange, you have the option of buying cryptocurrency with a debit or credit card.
- Buy NFTs. With your account verified and crypto loaded in your account, you now purchase NFTs on the marketplace. You can buy NFTs by buying a fixed price item, auction sale, or making an offer to a seller.
Purchased NFTs are sent to your Binance account, accessible from your User Center. In terms of fees, there’s a flat 1% fee for trading NFTs, and gas fees on Binance NFT marketplace are paid with BNB.
Binance NFT Marketplace Payment Methods
A few of the NFT Marketplaces out there accept deposits and payments via credit or debit card, and some even accept PayPal deposits. Seeing as Binance’s NFT platform is connected to its exchange, and you can deposit fiat currency to the exchange through both wire transfer and debit cards, we have chosen to mark Binance NFT as accepting debit card deposits. PayPal deposits are however not possible.
Bottom line
The Binance NFT marketplace is a relative latecomer to the rising NFT sector. It faces stiff competition from NFT marketplaces that have been in existence for much longer.
OpenSea has been around since 2017, and as a result, is the biggest and most popular NFT marketplace to date. Other major competitors include Nifty Gateway, Rarible and Mintable — all of these competitors advertise higher royalty percentages as well.
For creators, we don’t recommend Binance NFT if you’re looking to earn from your NFT resales. However, the marketplace is easy to use, signup is simple and there’s a free mobile app. For new NFT collectors, this could be a good starting point.
