Online commerce giant eBay has announced the acquisition of a non-fungible token marketplace as it extends its foray into the NFT ecosystem.
eBay announced that it had acquired an NFT marketplace called KnownOrigin marking its biggest step into the digital collectibles space.
U.K.-based KnownOrigin was founded in 2018 as a platform to enable content creators and collectors to buy and sell NFT digital collectibles on the blockchain. The announcement described it as a “leading” marketplace, but analytics platforms tell a different story.
According to DappRadar, it’s a minnow in the world of NFT marketplaces, ranked 27e with only a few hundred dollars in daily trading volume. However, in terms of Ethereum-based NFT markets, it is ranked in eighth place. The platform has facilitated 5,189 transactions worth $7.8 million since its launch.
Further details of the acquisition such as financials were not revealed in the announcement.
Big hit for eBay
Despite the platform’s relative obscurity, this is still a massive move from eBay. Company CEO Jamie Iannone said the commerce platform is often used to research unique additions to collections, before adding:
“KnownOrigin has built up an impressive, passionate and loyal group of artists and collectors making them a perfect addition to our community of sellers and buyers.”
eBay first dabbled in NFTs in May 2021 when it enabled users to buy and sell digital collectibles. He also reportedly considered crypto payment options during the same month.
The acquisition grants eBay a fully-fledged NFT platform that it can control. This will add more security to the process and peace of mind for buyers beyond just relying on seller integrity.
eBay’s current system allows Approved Sellers to list NFTs in the same format as a physical item. Many listings also contain details of NFT mint numbers and crypto wallet details for aftermarket transfers.
There are some limitations, however, with a $10,000 ceiling on items, no ability to bid in an auction, and geographical restrictions.
eBay NFT Collections
eBay has big ambitions for NFTs, having launched its own collection last month in partnership with Web3 platform OneOf. The NFT “Genesis” collection featured 3D and animated versions of athletes featured on the covers of Sports Illustrated over the years.
NFT investments and acquisitions are still occurring despite a slump in sales and volumes during the bear market. Be[in]Crypto reported that Solana-based NFT marketplace Magic Eden had secured another funding round pushing its valuation up to $1.6 billion.
