The NFT market has seen some ups and downs in the past week, with changes in the platform policies, artist rights, and market trends. Here are some of the highlights of the NFT news from last week:
OpenSea Drops Royalty Fees, Yuga Labs Responds by Blocking Trades
OpenSea, the largest NFT marketplace, announced that it will make creator fees optional for new collections starting from March 2024. This means that artists can choose whether to charge a fee for every secondary sale of their NFTs or not. Previously, OpenSea required a mandatory 2.5% royalty fee for all collections. Source
The decision sparked a debate on the fair compensation of artists and the sustainability of the NFT ecosystem. Some artists welcomed the move, saying that it will give them more flexibility and control over their pricing and revenue. Others criticized it, arguing that it will undermine the value of their work and incentivize buyers to flip NFTs without supporting the original creators. Source
One of the most notable reactions came from Yuga Labs, the entity behind the popular NFT collection Bored Ape Yacht Club (BAYC). Yuga Labs announced that it will block all trades of BAYC NFTs created after August 18, 2023, on OpenSea, citing the change in the royalty model as the reason. Yuga Labs said that it values the long-term support of its community and that it will only allow trades on platforms that respect its royalty policy. Source
Cardano’s NFT Floor Price Surges, Overtaking Ethereum: A Shift in the NFT Landscape
Cardano, a blockchain platform that competes with Ethereum, has seen a surge in its NFT floor price in the past week. The floor price is the lowest price at which an NFT can be bought on a marketplace. According to data from CryptoSlam, Cardano’s NFT floor price was $22.68 on August 21, 2023, while Ethereum’s was $18.42. Source
This means that Cardano’s NFTs are more expensive than Ethereum’s on average, implying a growing interest in Cardano’s NFT trading potential. Cardano has been attracting attention for its upcoming smart contract launch, which is expected to enable more complex and diverse NFT projects on its network. Cardano also claims to offer lower fees and higher scalability than Ethereum, which are some pain points for NFT users. Source
Some of the most popular Cardano NFT collections include SpaceBudz, CardanoBits, and CryptoKnitties. However, Ethereum still dominates the overall NFT market share, with collections like CryptoPunks, Art Blocks, and Bored Ape Yacht Club leading the charts. Source
Recur’s Shutdown Underscores the Challenges of the NFT Market
Recur, an NFT startup that partnered with brands like Hello Kitty, announced its shutdown on August 21, 2023, despite raising $50 million in funding earlier this year. Recur said that it faced “unforeseen challenges” in the business landscape and that it was unable to deliver on its vision of bringing mainstream adoption to NFTs.
Recur’s shutdown highlights the difficulties and uncertainties that NFT startups face in a highly competitive and volatile market. The NFT space is constantly evolving, with new platforms, technologies, and regulations emerging every day. Moreover, the demand for NFTs is influenced by various factors, such as consumer preferences, cultural trends, and market sentiment.
Recur said that it will refund all its investors and customers and that it will work with its partners to ensure a smooth transition. The company also thanked its team and community for their support and said that it hopes to see more innovation and growth in the NFT industry.