When it comes to the rise of crypto collectors, it is no surprise that many secondary markets have emerged for the exchange of these unique assets.
For those unfamiliar with non-fungible tokens (better known as NFTs), these are tokens that are unique to each other because of special features or identifiers that distinguish them from others in a similar set.
Especially within DeFi, we have seen that NFTs play a role in tokenizing assets and contracts alike, all of which play a more significant role in the notion of composability — or different products interacting with each other towards a larger ecosystem.
In this overview, we dive into OpenSea — an industry-leading decentralized exchange (DEX) for NFTs built on Ethereum.
OpenSea is the first (and largest) peer-to-peer marketplace for crypto goods (such as eBay for crypto goods), which includes collectibles, game items, and other virtual goods secured by a blockchain. On OpenSea, anyone can buy or sell these items through an intelligent contract.
These goods are digital items that you can collect. These goods can have different categories, and the only rule is that they are 100% digital and tokenized and that they are 100% yours once you pay for them, as the transactions and proof of ownership are stored forever on the blockchain.
Items include collectibles, game items, and many other types of digital goods. Intelligent contracts secure all transactions. The assets are live on the blockchain and are created on the Ethereum blockchain and are their property so that you can view them at any time.
This company was founded in January 2018 by Alex Atallah and Devin Finzer. Both bring experience to a strong team with backgrounds from Stanford, UC Berkeley, Palantir, Google, Facebook, and Pinterest. The main partners of OpenSea are BlockStack, Quantstamp, Trust Wallet, Combinator, Coinbase, Founders Fund, Blockchain Capital, and 1C.
To use this company, you must install MetaMask on your computer before you open an account. The account requires necessary information about you and an email. Remember to buy Ethereum to be able to purchase goods as well.
On the platform, you can browse articles or search for something specific. You can also participate in an auction or even create your auction for items. While average sales have a fixed price, auctions usually sell rare or unsold items, which therefore have a higher rate.
The price of the items varies greatly depending on the type of thing which made it, whether there are discounts, etc. The same account will be able to buy or sell the digital assets, which means that you can sell them again once you have acquired the rights to their ownership. However, if you are a developer, you should read the next section, as the company has special rules for them.
There are many different things you can buy on Opensea, from crypto kiddies to unstoppable domains. In the next time, I will sell my cryptostamps there.
Other famous examples are Etheremon, which is basically like Pokemon for another game based on Ethereum. The average price for an etheremon is 0.04 ETH, and you can buy them for 0.001 ETH if you are looking for the cheapest. The most expensive one can cost up to 0.3 ETH.
OpenSea has raised just over $4 million in donations, most recently with a round of $2.1 million, led by Animoca Brands, Stanford StartX, and David Pazdan of MetaMask. Previous rounds were supported by YCombinator, Founders Fund, Coinbase Ventures, 1Confirmation, Blockstack, and Blockchain Capital.
To get started with OpenSea, simply plug in a Web3 wallet like MetaMask and go to the Browse tab.
The application will automatically search your wallet for all the collectibles you have and the assets you need (like Ether) to buy items in the marketplace.
When interacting with listed items, users have the option of either entering a bid — assuming the seller hasn’t set a price — or accepting the list price, similar to eBay’s Buy Now feature.
When posting a listing, pay attention to which asset (ETH, DAI, etc.) the listing is published in, as it may vary from item to item.
Once a listing is placed, users will receive an email if their purchase was successful.
On the selling page of the items, simply click on “Account” in the upper right corner and then on “My Items” and select the item you want to sell.
Here you can choose the price and duration of the sale and the type of offer.
Listing is free of charge, and if items are sold successfully, OpenSea will charge a 2.5% fee on the final sale price.
If you enjoy collecting and want to invest money alternatively, OpenSea will be an excellent company for you.
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