Blockchain Foundry Inc. (CSE: BCFN)
Develops and commercializes blockchain-based business solutions and provides consulting services to corporate clients seeking to leverage blockchain technology in their businesses.
The hype surrounding NFTs reached a fever pitch last year with a slew of record-breaking sales and intense media scrutiny. While some continue to believe that NFTs are a passing fad, a market value that surged to over US$40 billion in 2021 – nearly as much as generated by conventional art sales – would seem to indicate otherwise.
This brings us to NFT marketplaces, online platforms where collectors, content creators, and artists can buy, sell – and in some cases create – collectable digital assets. The business model of NFTs is simple; unlike content on Netflix or Spotify that is available to everyone for a fee, NFTs represent ownership of one-of-a-kind digital artworks that are original, limited, and non-fungible. And just like scarcity makes a Picasso valuable, limited quantity is driving the price of NFTs.
NFT marketplaces are, in a sense, the digital answer to traditional auction houses. However, there are many flavours of NFT marketplaces. There are streamlined platforms that strictly facilitate the trading of NFTs, augmented platforms that enable minting of new NFTs, and even niche marketplaces where users can trade digital assets like rare in-game items, virtual real estate, and digital memorabilia.
But with so many options, how does one choose the right NFT marketplace to partner with or invest in? Everyone wants to be on the winning end of the next Amazon or eBay, but within the NFT universe, the choice may not be as straightforward. With such a diverse array of services, it remains to be seen whether the NFT marketplace will be dominated by a few large players or several platforms offering a range of NFT services.
While nothing is guaranteed in the NFT market, to help avoid making costly mistakes, it’s essential to understand the business models of various NFT marketplaces and what they offer users.
The process of minting and listing a new NFT is relatively straightforward. For simplicity, this is a step-by-step guide for creating new digital art on OpenSea, one of the more significant NFT marketplaces, but the process will be similar on other platforms.
Before you can start designing, you need to connect your crypto wallet to the NFT marketplace and create a profile. OpenSea and other platforms make this easy to do by clicking on the wallet or ‘create’ icons.
There are gas fees involved in selling an NFT, so before you list, you’ll need to make sure you have enough crypto in your wallet. You can always add more later if you need to either by buying it on your preferred crypto exchange or, in some cases, directly through the NFT platform.
Once your wallet is connected, you can select ‘create’ from the upper right corner. You’ll be taken to the NFT creation page, where you can upload, name, and describe your digital file. Additional options include adding external links – like your website and social media – and other customization opportunities for your NFT drop. You can even choose which blockchain you want to mint your NFT on.
On OpenSea, you’ll also set your royalty fees during this step. Royalties ensure that you receive a reward any time your NFT exchanges hands. You have discretion over your fees, but between 2.5% and 10% is standard.
Once you’re happy with your newly minted NFT, you can start selling by clicking on the ‘sell’ button in the upper right corner.
Here you can choose to list your NFT through either a fixed-price sale or timed auction. If you didn’t set your royalty fees during step 2, you’d do that now, and you’ll also pay the ‘service fee’ associated with handling your listing. On OpenSea, that cost is 2.5% of your selling price.
The popularity of NFTs is booming, but simply creating one doesn’t guarantee success – you need to create a buzz around your NFT drop.
The business model of NFT marketplaces like OpenSea is pretty straightforward; when NFTs are sold on the platform, a service fee is collected from the seller. In the case of OpenSea, there is a flat-rate fee of 2.5%. Other NFT markets might charge more or less, and some may take a portion of future royalties.
On January 10, 2022, BCFN’s Last Known Marketplace held its first NFT drop: a collection of 888 unique NFTs by critically acclaimed award-winning artist Chairman Ting. A 24-hour invitation-only pre-sale saw more than half the collection snapped up by eager buyers – despite excessive Ethereum gas fees. When the public sale opened Tuesday, the remaining “Buns” sold out in 48 seconds. 48 seconds.
You can take a look at the entire collection here or try your luck at nabbing one on the secondary market. The Buns are currently trading on OpenSea and will be available on LastKnown’s secondary marketplace when it launches late this year.
“On Monday, for the whitelist, we sold over 64% of the collection,” remarked Ting. “Then, before I could catch my breath, the public sale sold out in 48 seconds flat. I’m super thankful for the success of my first NFT drop. I couldn’t have done it without the incredible help provided by the LastKnown.com team!”
About LastKnown Marketplace
BCFN’s LastKnown is a newcomer to the NFT marketplace. This niche market offers users an exclusive, curated selection of limited quantity drops from world-renowned artists and content creators.
About Blockchain Foundry Inc.
Blockchain Foundry Inc. (CSE: BCFN) is a North American leader in designing, developing, and commercializing cutting-edge blockchain-based solutions for both consumer and enterprise-ready applications. BCFN also provides next-level consulting services to corporate clients looking to launch their blockchain visions to life.
While the company’s roots are in digital asset infrastructure, it has expanded into the world of NFTs. It has several highly successful projects under its belt, including the recently launched LastKnown NFT marketplace.
Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.