NFT Marketplace Guide

NFT is unique and special. Its stand for Non-Fungible Token that is supported by a digital asset whose origin or ownership has been authenticated by blockchain technology such as “digital signature”. Nowadays, not only digital artists who place their art work on blockchain technology, but artists, actresses —Paris Hilton is one of them, actors, athletes also use blockchain technology to tokenize their digital works.

So, I assumed, you might have these questions in mind—

How to Make NFTs?

Here are the essentials: electronic wallet, purchase of ethereum, and a connection to an NFT marketplace where you’ll be able to upload and turn the content into an NFT or crypto art.

How to Sell NFTs?

Generally, the process is as simple as uploading your content on the NFT marketplace platform, then following the instructions to turn it in the NFT. Like you are on social media, after uploading your content, you can write a description. But, in NFT you can set your desired price of your uploaded content! Commonly, NFT can be bought using ethereum. But there are other options. I.e., WAX, Flow, or Vexanium.

Also, keep in mind that some websites charge a fee. Which means, reading the terms and conditions carefully is a must!

—and, someday you interested on buying one—

How to Buy NFTs?

Nifty Gateway, MakersPlace, OpenSea, Decentraland, etc — is the marketplace that is possible to buy NFT. NBA Top Shot for basketball videos, or Valuables for auctioned tweets, were some of the specification types of NFT that were available.

Fees might vary — depending on the use purpose, that’s something to be careful about. Some marketplace charge fees for ‘gas’, other fees may include the cost of converting dollars to Ethereum.

Launch NFT Marketplace

As aforementioned before, Nifty Gateway, SuperRare, MakersPlace, OpenSea, Decentraland, etc were some of the NFT marketplace who provide buying, selling, and trading NFT tokens. They provide different treatment depending on their token standards and the first creation of a non-fungible token standard is ERC-271 by Ethereum.

Let’s take a look to the existing marketplace below,

OpenSea

Being the largest and longest-standing NFT marketplace since 2017, OpenSea offers a variety of non-fungible tokens. From domain names to tokenized representations of physical assets and currently has over 4 million products. It’s like an eBay on the blockchain. 

SuperRare

Encourage the creation and collecting of crypto art, also has worked with artists since its inception by listening to the needs of artists and collectors, that is what SuperRare is.

Rarible

Emerged in 2020 and having ERC-20 RARI token powering it, Rarible was designed as the world’s first community-owned NFT marketplace. RARI token holders receive governance rights with the ability to vote or put any protocol proposals.

GhostMarket

GhostMarket is the first cross-chain NFT marketplace that NFT assets purchased on the Ethereum blockchain. It allows you to open, buy, and sell NFTs on both NEO blockchain and Phantasma.

And many other platforms that are too long to be listed. But, you might ask now, how they — the developers can build an NFT platform? More importantly, how can they launch the platform to the public? 

Other than Ethereum, there is a Vexanium blockchain that you can access to launch your own version of NFT marketplace. Developers around the world can build their crafted NFT marketplace through the Vexanium blockchain network. Vexanium will provide an incentive called the Dapps Incentive Program for developers who create Dapps on their network – which NFT is included in with a total prize 5,000 USDV. 

Now you have yours, now let’s launch your crafted NFT marketplace! First and foremost, legal documentation is much needed for your NFT marketplace launch. The list as follows,

  • Company formation, highly recommended that you form a corporate entity, so you have the strongest liability protection for business owners and shield your assets from business obligations. Flexibility to accommodate growth and seek financing from external sources much possible.
  • Terms of service, needed to protect the company from liability with respect to your users and will include provisions such as disclaiming any warranties towards users, limiting the company’s overall liability, setting up an indemnification framework to cover your company, and implementing an arbitration process in the event of any disputes.
  • Community standards, given the predominance of user-generated content and user transactions in NFT marketplaces, it’s recommended that most NFT marketplaces include an additional layer of legal restrictions in the form of community standards (also known as code of conduct) to govern interactions on your platform.
  • Privacy policy, Privacy policies are mandatory by law. Legally your company is required to disclose its data collection and use practices, among other legally required disclosures. Generally, privacy policies are intended to provide transparency to users in what you are doing with their data. But, you may need to make additional disclosures and provide other optionality to your users.
  • Other policies, it’s required as  external policies that can expand on your company’s position concerning specific actions and behaviors. And internal policies can help you implement and standardize response and enforcement of your compliance obligations, external policies, and other legal obligations within your organization.

Legal document sorted, there is still more to go. You need to consider the IP, consider the content, content moderation, checking the content authenticity, consider the security law, and other legal factors that need to be kept in consideration. Also, risks for NFT issuers and NFT marketplace. This in depth about legal guide to launch NFT marketplace can be read here.

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