The cryptocurrency market remains uncertain after May’s sudden drastic correction from soaring all time highs, but that’s not stopping one of the industry’s biggest movers from plowing ahead with a new NFT marketplace.
Many newcomers to the cryptocurrency industry were shocked by the market’s sudden downturn in May. Binance founder and CEO Changpeng Zhao, however, is no newcomer to the industry. He’s worked his way through many crypto bull markets and capitulations. And he knows from his experience the worm will eventually turn again.
To be ready when it does, the Binance team is working with an impressive roster of celebrity artists and athletes to facilitate NFT projects for their fandoms.
NFTs or Non-Fungible Tokens are smart contracts that execute and validate ownership of both physical and intangible goods. Use cases range from art, to collectibles, to gaming, and even to conventional finance applications.
Crypto Prices Corrected Drastically in May, But That’s “Very Normal”
In a live AMA interview late last week, Changpeng Zhao, had words of prudent caution for new crypto investors, entrepreneurs, and users. He also brushed away at the panic and FUD that’s littered news media coverage and conversations about the decade-young industry lately:
"A few days ago we experienced a very significant downturn or drawdown. For Bitcoin, around 50%. For Binance Coin, from the previous all time high, which was $690 it was 60-70%...Last week, technical indicators suggested bearish momentum for Binance Coin (BNB) had lost steam.
Look, these kind of corrections or retracements are common. To be honest no one knows if this is the beginning of the bear market, but now we kind of know that the market is bouncing back...
But 50% drawdowns are very common in crypto like a couple years or three or four years ago. And it's more common before that. So I would say it's a very normal market.”
Zhao, who goes by “CZ” or “Binance CZ” for short, isn’t losing sleep over any of it, he told viewers in the AMA. He’s not even sweating the US Justice Dept and IRS probe into money laundering over Zhao’s cryptocurrency exchange.
Bloomberg was careful to note in reporting the investigation earlier this month that the federal agencies “haven’t accused Binance of wrongdoing.”
In fact, CZ says he’s been losing sleep staying up late working to bring his crypto liquidity market’s new products to fruition along with his team. The most notable projects extend and deploy Ethereum technology like ERC-20, the most common Ethereum token standard.
Among these are Binance Smart Chain, an application specific extension of ERC-20 at the Binance layer of the Ethereum ecosystem–– and Binance NFT marketplace, launching in June.
Binance CZ: “Everything Can Be Represented In NFTs”
As the NFT industry blossomed along with the latest cryptocurrency bull market since late Dec, Binance saw an opportunity to create a unique value proposition.
The crypto exchange is hoping to combine industry-best liquidity and low fees with a premier line-up of one-of-a-kind digital offerings.
Reporting on the development early, CNBC noted Binance will “take a 10% cut from the proceeds of major auctions,” with 90% going to creators. Meanwhile, day trading in NFTs on the marketplace will be facilitated for a processing fee of 1% of the transaction. Creators will enjoy getting a 1% royalty every time their NFT change hands in perpetuity.
In his recent AMA, Changpeng Zhao said:
“When I look at these potential pipelines for the artists, and content creators, and business partners– I was just very impressed. It seems like everybody… who’s relatively famous under the sun, are thinking about issuing NFTs. So I think basically, anything that’s valuable, every content, everything can be represented in NFTs.”He cautioned that this is no guarantee the NFT industry “will be huge,” but said “this is the first time” in the Internet’s history that content creators have such a flexible way to monetize their work and engage their fan community. That’s why the Binance founder says he is “really, really bullish about the NFT market.” He said in the AMA that he actually didn’t understand it “until our team showed me what we’re building, and the business development pipelines.”
After dipping below $2200, ETH bounced back by solid single digit percentages Sunday, breaking the cryptocurrency back above the 100-day moving average.