Amiss the market chaos, there is still room for NFT royalty chatter. OpenSea has announced that creator royalties will maintain as they have been on the marketplace, feeding what seems to be a ‘closing loop’ on what has been a continual hot topic around the NFT community lately.
The move comes as OpenSea competitors sought to undercut prices by chopping royalties, leading the NFT platform to reconsider their stance on creator fees in order to stay aggressive in the market. Despite being overshadowed by broader market headwinds this week (and rightfully so), the decision from OpenSea is largely seen as a win for those passionate about the NFT space.
Let’s review the circumstances and everything you need to know regarding OpenSea’s latest announcement.
With Choppy Waves, OpenSea Leads Through The Storm
OpenSea has faced a bevy of new challengers to their throne throughout the year, who have taken a variety of approaches in attacking the platform’s market share. Nonetheless, OpenSea’s early mover advantage has sustained the platform as the undisputed leader.
On Wednesday, with crypto market turbulence at full force, the NFT marketplace announced their closing decision on creator royalties via a Twitter thread:
UPDATE: We will continue to enforce creator fees on all existing collections.
— OpenSea (@opensea) November 9, 2022
However, as OpenSea notes in their thread, “this space is trending toward significantly fewer fees paid to creators” – and while policies around existing collections will be enforced, it seems increasingly that future collections will not fall under the same jurisdiction.
In fact, it’s practically a guarantee; the platform closes their thread by specifying that new collections need to fall under “on-chain enforcement tools.” It is largely a consolation for the platform who is feeling the burden’s of market effects while still appeasing the leading creators and influencers in the space.
Nonetheless, the NFT community at large has lauded the decision – at the behest of feeling that it was almost an unnecessary discussion in the first place.
Ethereum (ETH) is the dominant token of choice for NFTs, but WETH bids have been getting accepted at unparalleled rates this week. | Source: ETH-USD on TradingView.com
Heat Check: WETH Bids Accepted At Rapid Pace
Meanwhile, WETH bids on OpenSea are being accepted at unparalleled pace this week, potentially signaling market uncertainty around NFTs during a time when the broader crypto market has faced substantial headwinds. WETH is typically utilized for outstanding bids below asking price, implying that sellers are accepting lower-than-listed prices at an unparalleled rate.
Wrapped Ethereum (WETH) volume on OpenSea has been soaring, suggesting that outstanding bids are being accepted at a much higher rate than ever before. | Source: NFTstatistics.eth courtesy of Flipside Crypto
It’s an especially interesting phenomenon in the midst of major market noise, however the likely conclusion is that there is less faith in NFT markets now than anytime in the recent past, and NFT holders are willing to liquidate at prices that wouldn’t have been considered a matter of months ago.
Featured image from opensea.io/blog, Charts from TradingView.com The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.
This op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.