OpenSea announced that it would be expanding its product like at the recent Non-Fungible Token (NFT) New York City Event. The CEO of OpenSea explained that the platform is a: “marketplace for digital goods, including collectibles, gaming items, digital art, and other digital assets that are backed by a blockchain like Ethereum.”
The whole space is powered by Non-Fungible Ethereum tokens, like the one that makes CryptoKitties work. NFTs have been grown exponentially. Some of the biggest VCs are currently looking to invest in the NFT space.
OpenSea’s marketplace has greatly expanded its assortment of available products since its first beginning with CryptoKitties. An NFT representing a car in an upcoming Formula 1 game sold for 415.9 eths (~$107,000 at the time) in May 2019 on the platform.
OpenSea is an Interesting Market
However, collectibles built on the anti-forgery technology have not been protected from fraud themselves. OpenSea's CEO added: “Yes, we have fakes too. People will copy the smart contract one for one and all the media as well.”
OpenSea creates $2-3 M in monthly revenues and may become profitable in the near future. Attalah believes its bright future as well as expects that major game studios will enter the NFT space soon. While NFTs are an interesting market, the potential for Non-Fungible security tokens is far larger.
The platforms that allow people to trade things like stocks are extremely outdated, and security tokens could make these markets far more efficient for everyone involved. The current equity trading system also makes it very hard for smaller companies to access capital on good terms, which gives larger companies an unfair advantage.
Security Tokens are a Powerful Tool
Blockchain can easily be used to create security tokens, which would represent just about anything of value. Instead of going public via an IPO on a public exchange, a company could use blockchain to sell their equity to the general public.
There are, of course, piles of laws that govern this sort of activity, at least for the moment. The real problem is that governments are facing a situation where their administration of these legal systems has become corrupted, and many people simply don't trust all the entities that are involved in the financial markets.
Non-Fungible tokens, whether they are based on the Ethereum blockchain or not, can do a lot to create more efficient, transparent ways to trade valuable goods. It is likely that as people become more aware of how blockchain empowers regular people, as well as smaller companies, NFTs and security tokens will become far more popular.