Sotheby's launches NFT marketplace on Ethereum and Polygon

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Sotheby's launches NFT marketplace on Ethereum and Polygon

Sotheby's, a former auction house, has launched a peer-to-peer NFT marketplace on Ethereum and Polygon. NFTs can be traded using ETH or MATIC tokens, and the platform charges a transaction fee of 2.5%.

Sotheby's Metaverse, acurated platform featuring a limited selection of handpicked artists, is a one-of-a-kind platform. At launch, 13 artists, including XCOPY, Tyler Hobbs, Claire Silver, Sam Spratt, and Refik Anadol, have been selected, with plans to rotate artists periodically.

The company said the marketplace will honor creator royalties, which will be enforced using smart contracts.

The company said s commitment to honoring artist royalties comes amidst a larger debate about royalties within the NFT community and signals Sotheby's artist-first ethos as one of the only major NFT marketplaces committed to artist resale royalties.

The NFT community has had a lively discussion on creator royalties, with each NFT marketplace taking its own position on the issue.

On its Web site, OpenSea announced that it will collect a 0.5% minimum royalties on all collections, and that marketplaces with similar enforcement will not be blocked.

Blur and OpenSea, the two biggest NFT marketplaces, have generated less than $3.5 million collectively from creator royalties in the past 7 days. In the past three months, NFT royalties paid to users have dropped by more than 60%, with royalties paying users less than 75% of the cost, according to Dune Analytics.

The NFT market is experiencing a severe downturn. Collectors have been selling their NFTs for substantial losses, and volumes across NFT marketplaces are dwindling. Blue-chip NFTs' interest has decreased as their floor prices have been sluggish.

Bitcoin Ordinals, one of the few bright spots in the NFT, has broken a new benchmark as inscriptions reached the two million mark.