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Overview of NFT-marketplace OpenSea

Overview of the NFT platform OpenSea. The history of the marketplace. How to buy or sell NFTs? How much can you earn from this?

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OpenSea is a popular NFT (non-fungible token) trading platform. On this platform, you can create your own tokens, as well as buy or sell them. Further in the article we will analyze the history of creation, the pros and cons. After that, we will instruct you on creating/buying/selling NFTs, as well as reveal the existing vulnerabilities of the marketplace.

The history of the creation of OpenSea

What every cryptocurrency enthusiast should know about the OpenSea marketplace, the king of the NFT market? First of all, it is one of the most popular NFT marketplaces in the world, having generated about $14 billion in transactions in 2021, and has already surpassed $1 billion in January 2022.

By far, in 2021, NFTs were the most successful and “hype” crypto assets. Obviously, the story of the rise of tokens will continue in 2022. Why can you say so? For example, based on a recent impressive round of investments in which the OpenSea marketplace received $300 million and is currently valued at over $13.3 billion.

Start

 

In 2017, the world witnessed the creation of CryptoKitties. For the first time, a decentralized application based on blockchain technology has appeared and is intended for a wide audience.

While the CryptoKitties app seemed like a toy to many, it represented a significant shift in how we interacted with digital objects. Unlike previous virtual objects stored on the company’s servers, they were now stored on public blockchains not specifically owned by anyone. They could be accessed from anywhere, freely shared, and truly owned.

Founders of Opensea

 

Fascinated by the nascent NFT movement, Devin Finzer and Alex Atalla joined the early adopter community on Discord. A little later, in December of the same 2017, a beta version of OpenSea was launched.

Their company of just a few people created a platform that allowed users to create, buy and sell non-fungible tokens. It was possible to create an NFT from any work of art, musical composition or video, that is, everything that can be digitized.

Shortly after the launch of the project, the founders included their company in the famous startup accelerator Y Combinator, which immediately brought financial support in the amount of $2.7 million.

To date (2022), OpenSea is the leader in sales of non-fungible tokens. The marketplace trades over 150 types of NFTs. OpenSea is considered to be the best place to explore the NFT world.

Competitive advantages of OpenSea

 

The site uses the ERC1155 and ERC721 protocols. Any ERC20 tokens are accepted for payment. A bank card is accepted for payment using the intermediary service (MoonPay).

One of the main advantages of the OpenSea platform is the wide variety of categories, for example:

  • sports field;
  • art;
  • Celebrity NFTs and more.

Benefits of OpenSea NFT

  • standard and relatively low commission – 2.5%;
  • the creator of the NFT pays for gas only at the initial placement;
  • there is no need to verify the account;
  • wallets available such as: MetaMask and Coinbase;
  • large selection of NFTs, many categories of NFTs.

Creation and sale of NFTs

 

To start creating an NFT, you need to go to the “Create” section, and then confirm the network signature in your personal wallet. Immediately after that, the section for adding a token will become available. Next, select the file of the digitized object, determine the desired section and enter the name.

Entering a title and selecting a sectionEntering a title and selecting a section

 

After adding the description, you need to choose the blockchain of the future NFT: Polygon or Ethereum. Immediately after creation, a page will open with a description of where you need to configure the token, as well as the pricing format. Available to choose from:

  • minimum price of NFT;
  • delayed sale;
  • private mode (created NFT will not be displayed in the listing).

Token settings on the marketplaceToken settings on the marketplace

 

Next, click the “Post your listing” button and confirm the gas payment. From this moment on, your NFT is listed on the platform and is open for purchase.

How much can you earn on OpenSea?

 

First of all, the following methods are available for making money on the OpenSea platform:

  • creation and sale of own tokens;
  • acquisition of other people’s NFTs for subsequent resale at a bargain price.

It should be noted right away that in order to successfully sell your own NFTs, the object of sale must be not only unique, but also in demand. Obviously, if your NFT does not have any history associated with celebrities or popular brands, you should not hope for any significant earnings.

Some naive enthusiasts believe that they can earn as much money as famous artists or top brands. For example, the Beeple collection of 5,000 images was sold for $69.3 million.

NFT competition has already reached a large scale, which means that it will not be so easy to lure a potential buyer. Based on this, with an average approach and fairly unique / interesting content, you should not count on income of more than a few tens of dollars.

NFT games

 

Sellers of NFT items from popular games can get a good income if they were able to get or create a truly unique and valuable object. Of course, for this you need to familiarize yourself with NFT games, determine a strategy, and make an initial investment to buy effective game characters.

Disadvantages and vulnerabilities of OpenSea

 

In conclusion, I would like to touch on the shortcomings of the marketplace. You can talk about them for a long time, and in fact this is a separate big topic for discussion. However, it is worth noting the most important minus. According to some experts, more than 80% of NFTs created on the OpenSea marketplace are the most common plagiarism.

Moreover, there is a large amount of scam (fraud) and spam on the site. To protect users from all of the above, the company even organized security support and hired specially trained personnel.

To protect yourself from fraud and plagiarism, the user needs to become familiar with the NFT industry in detail, and also take care of security in advance by studying popular NFT fraud methods.

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