Road to $50M - NFT Marketplace

Current market analysis

We’re in a bear market! That’s fact. So the road to $50M trading volume per month is harder than 6-8 months ago (when NFTs craze was going on).

Taking a look on the top trading volume marketplace in last 30 days, we’ve got these guys:

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Opensea is quite reputable as the 1st NFT Marketplace mover, with trading volume coming from the top collections in this game (BAYC, cryptopunks,…).Let’s focus on looking at other alternatives to see how they attract users:

Magic Eden

Magic Eden is the 1st NFT Marketplace on SOL. With some highlight features:

  • Magic Ticket / Magic DAO

    • Consider its model as tier membership, each NFT represent your level and benefits in a DAO community,The most attractive benefit is: REWARDS.

User receives points while using Magic Eden NFT marketplace, these points are convertible to SOL (or other rewards)

Magic tickets
Magic tickets

  • Launch pad

    • A dedicated section for NFTs projects that got incubated by Magic Eden

    • They launch the NFT presale right on Magic Eden marketplace - launchpad section

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The model is similar to crypto launchpad where they have ticket whitelisting <> IDO (public sale) slot:

  • Launchpad would act as a acquisition pool, where they acquire new users through co-marketing with the gamefi projects users

    • These users if they want to purchase gamefi project NFT, should have to purchase Magic Ticket to get a IGO slot

    • After grabbing the Magic Ticket, the user will likely to purchase the NFT in launchpad

=> Increase trading volume

Magic Eden model summary
Magic Eden model summary

Cons:

  • Magic Ticket <> Launch Pad is a great way to build loyalty users, but it’s not a fair-launch mechanics

    • Magic Ticket is limited, at some points it can create barriers for new users to onboard

  • The platform depends on new traffics they can acquire from Launch Pad projects

    • If the new projects’ traffic is dying out, then at some point there are no new traffics for Magic Eden

Looks Rare

Looks Rare got a very unique rewards sharing mechanism that got user’s attraction

  • Platform fee → Rewards for stakers

    • The more volume traded on the platform, the more earning for the stakers

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  • To boost more collection to be listed on Looks Rare, they even giving out rewards for listing the item

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Cons:

  • Token rewards via listing / trading / staking is good for short term (up to 6 months) hype.

    • But for long-term, it depends on tokenomics balance to make sure $LOOKS token is alive

    • The model is somewhat similar to Play-to-earn gamefi models, good for immediate hype, but cannot retain from big supply sale in the long run

  • No clear revenue model, so it’s a big WHAT IF for them on keeping the $LOOKS’s price to be healthy

X2Y2

X2Y2’s NFT marketplace brought new features to the forefront of NFT trading. Those features include:

  • Profit-sharing: X2Y2 is the first NFT profit-sharing platform. Users who stake their X2Y2 tokens on the platform will receive a % of the fees for all NFT trades proportional to their share. Other platforms such as OpenSea don’t offer profit-sharing.

  • Bulk listings: Users can list all their NFTs simultaneously or list selected NFTs in one transaction. This saves on gas fees from having to pay for individual NFT listing.

  • Bulk purchasing: Traders can purchase multiple NFTs with one transaction, paying a singular gas fee. This also saves on gas fees for frequent traders.

  • Push notifications: X2Y2’s system automatically emails users the second there’s a bid or a purchase of one of their NFTs. It also notifies traders if their bid is accepted.

  • Rarity statistics: X2Y2 features a brand new rarity tracker that can track the rarity of items and also show the last price on OpenSea. Detailed analytics are included for each NFT and its history.

  • Secret items: X2Y2 will be the first NFT platform to feature secret NFTs and privacy will be one of their main angles in the future.

STRATEGY

So what could be a good strategy for a new launched marketplace on a new launched blockchain, to achieve $50M trading volume in the next 6 months:

  • The Marketplace should be able to:

    1. Take advantage of current top marketplace’s traffics, including: Users / Items / Sale activities

    2. Create incentives for creators / projects => launchpad / rewards / competitive trading fee

    3. Create incentives for users to trade NFTs on Marketplace => rewards / competitive trading fee