5 NFT Marketplaces and their stance on creator royalties 💰
Creators sell their NFTs via marketplaces and each marketplace has their own stance on royalties and how/if they should be administered to the creators
Lets give them a Royalty Defendoor Score (RSD)👇 🧵
— tokensite (@thetokensite) March 24, 2023
The Reality Of NFT Royalties: Boris Pevzner
Boris Pevzner, the co-founder and CEO of LiveArt, commented on the situation as well. He focused on the gap between the Web3 ecosystem’s promises and the reality for creators. Pevzner noted that the shortfall in royalties indicates that the current system is effective. He also expressed concerns that if NFT marketplace wars deter artists from participating in the industry, the space could lose its creative spirit. According to him, the current state of the NFT industry resembles the stock market.
The entrance of a new marketplace has intensified competition. New marketplaces are targeting OpenSea’s market share as the platform is the biggest one out there. Meanwhile, the market capitalization of the NFT industry stands at approximately 3.7 million Ethereum or around $6.8 billion. The sector’s 7-day trading volume is approx. 80,000 Ethereum, translating to $144 million, according to eBit Labs. This does not include all NFT collections in existence, however, but it can paint an approx. image of how big the sector currently is. While the NFT space grapples with royalty issues, Bitcoin has been experiencing a bullish trend in recent weeks. The current rally is attracting attention from investors. This comes after the banking sector crisis, with investors seeing Bitcoin as a safe haven for recession. The Bitcoin rally and the condition the NFT sector finds itself right now further highlight the disparity between cryptos, Web3, and NFTs.