Sebastian Sinclair

NFT marketplace-related utility and governance tokens took a beating Tuesday, cementing itself as one of the industry’s worst-performing categories on the day as the broader market’s rally hits pause.



Tokens tied to NFT marketplaces Blur, LooksRare, SuperVerse, Rarible, X2Y2 and Sudoswap have fallen deeper in the red on a 24-hour basis as interest in the niche digital asset sector has begun to taper off.&nbsp;



Governance tokens for digital collectibles marketplaces fell between 4 to 16%, including SuperVerse’s (SUPER), Blur’s recently launched <a href="https://blockworks.co/price/blur">BLUR</a>, Rarible’s (<a href="https://blockworks.co/price/rari">RARI</a>) and Sudoswap’s SUDO.



Despite Blur’s booming volumes of late amid “speculative” tokenomics, Andrii Yasinetsky, chief executive of NFT data firm Mnemonic, told Blockworks the unwinding interest is expected.



“It’s just the reflection of a broader sentiment that people got tired of these trading-focused schemes,” Yasinetsky said. “The market wants to see broader adoption of Web3 and NFTs through all kinds of consumer experiences now.”



Ethereum-based token SUDO launched <a href="https://blockworks.co/news/sudoswap-is-getting-a-new-governance-token">60 million tokens</a> via an airdrop last week around the same time as Blur’s token launch. SUDO is down about 26% since Feb. 19 while Blur is still posting green — good for about 60% over the last seven days.&nbsp;



Decentralized NFT marketplace utility tokens of LooksRare and X2Y2 also shed between 6% and 13% on the day, CoinGecko <a href="https://www.coingecko.com/en/categories/nft-marketplace" target="_blank" rel="noreferrer noopener">data</a> show. Both are down 23% and 56%, respectively, on a weekly basis.



It comes as bitcoin (<a href="https://blockworks.co/price/btc">BTC</a>) shunned resistance near $25,000 on Tuesday after springing to life last week. Bitcoin is up more than 14% on a weekly basis — but remains down about 2% on the day after retreating from local highs not seen since August of last year.



Also in the last 24 hours, the industry’s total market value has fallen 2.2% to $1.15 billion from 1.18 billion — while bitcoin inflows to exchange wallets jumped 40% on Monday, data provided by <a href="https://app.intotheblock.com/coin/BTC/deep-dive?group=exchanges&amp;subgroup=on-chain-flows&amp;chart=inflow-volume" target="_blank" rel="noreferrer noopener">IntoTheBlock</a> show.



Surges in incoming exchange transactions often dovetail with episodes of heightened market turbulence. The correlation may indicate that some holders are seeking to book a profit by liquidating their assets on centralized exchanges.



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NFT Marketplace Tokens Hit Hard as Bitcoin Rally Retreats

Shalini Nagarajan

Bored Ape Yacht Club (BAYC) creator Yuga Labs has blacklisted addresses from marketplaces that don’t support royalties for NFTs like its latest Sewer Pass mint.



Differing perspectives on <a href="https://blockworks.co/news/web3-nft-ape-dao-hot-wheels">the enforcement of creator royalties</a> has been a hot topic among NFT stakeholders, including marketplaces, some of which <a href="https://blockworks.co/news/sudoswap-erupts-as-nft-traders-capitalize-on-royalty-free-sales">have decided to make them optional</a>.&nbsp;



BAYC had already announced that the Sewer Pass NFT will be listed on OpenSea, which <a href="https://docs.opensea.io/docs/10-setting-fees-on-secondary-sales#:~:text=That%20means%20a%202.5%25%20fee,in%20the%20My%20Collection%20editor." target="_blank" rel="noreferrer noopener">enforces royalties</a> for projects.



&#8220;We’ve always been a creative-first company, and we believe that creator royalties must be protected,&#8221; a Yuga Labs spokesperson told Blockworks via email. &#8220;The Sewer Pass free claim will only be traded on platforms respecting creator royalties.&#8221;



LooksRare, Sudoswap, Blur and NFTX have all opted to stay away from the NFT royalty model, instead leaving the option to the buyers to decide whether to honor an artist’s royalty policy. Blockworks has reached out for comment.



Certain conditions in the Sewer Pass <a href="https://etherscan.io/address/0x849b59222d093011726d829475C81C79F90ed932#code" target="_blank" rel="noreferrer noopener">smart contract</a> include a blocklist of certain wallet addresses, which were noticed by the crypto community and <a href="https://twitter.com/locationtba/status/1615792932296196096" target="_blank" rel="noreferrer noopener">shared</a> on Twitter.&nbsp;



Some of those addresses appear to be linked to marketplaces like LooksRare, NFTX, Blur and SudoSwap.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Was taking a read through <a href="https://twitter.com/yugalabs?ref_src=twsrc%5Etfw">@yugalabs</a> Sewer Pass contract, and saw that it&#39;s referencing a contract that was deployed a week ago. The contract is labeled as a Registry and there&#39;s a bunch of transactions adding to the blocklist. Presumably one of the addresses is <a href="https://twitter.com/blur_io?ref_src=twsrc%5Etfw">@blur_io</a>&mdash; location tba (@locationtba) <a href="https://twitter.com/locationtba/status/1615792932296196096?ref_src=twsrc%5Etfw">January 18, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<a href="https://blockworks.co/news/nft-royalties-sometimes-they-work-sometimes-they-dont">NFT royalties</a> are essentially payouts to creators, offering them a cut from the secondary sale of their digital assets on a marketplace. Beeple, one of the best-known NFT creators, himself gets a <a href="https://www.reuters.com/lifestyle/digital-only-artwork-fetches-nearly-70-million-christies-2021-03-12/" target="_blank" rel="noreferrer noopener">10% royalty</a> each time his NFTs are resold after the initial sale.



The <a href="https://icy.tools/collections/sewer-pass/overview" target="_blank" rel="noreferrer noopener">Sewer Pass</a> is a key providing access to Yuga’s skill-based interactive game <a href="https://twitter.com/BoredApeYC/status/1613331130249256962" target="_blank" rel="noreferrer noopener">Dookey Dash</a>, a game in which players will face obstacles testing their survival until top scorers can earn rewards.&nbsp;



The pass has four tiers, depending on the kind of NFTs the holder has. The floor price for a Tier 1 pass last stood at 1.4 ETH as of Thursday, while Tier 4 was selling for around 420 ETH. Currently, a <a href="https://opensea.io/" target="_blank" rel="noreferrer noopener">trending</a> collection, it’s already captured 6,510 ETH ($9.9 million) in sales volume since going live on Wednesday.



Yuga isn’t the only one to block marketplaces for their policy. NFT artist Tyler Hobbs added X2Y2 to a blacklist in his QQL collection due to its flexible royalty model. X2Y2 eventually <a href="https://twitter.com/the_x2y2/status/1593631425483657216" target="_blank" rel="noreferrer noopener">changed its decision</a> and followed OpenSea’s model.



This story was updated on Jan. 19, 2023 at 12:22 p.m. ET, with a statement from Yuga Labs.



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Yuga Labs Blacklists Royalty-avoiding Marketplaces

Casey Wagner

<div id="highlights-block_62c70d5fa3f13" class="highlights">
 <ul>
 <li>The NFT collectible series allows users to profit from their art</li>
 <li>The avatars, which can be purchased without cryptocurrencies using standard credit or debit cards, range in price from $9.99 to $99.99</li>
 </ul>
 
</div>



As social media platforms ramp up their cryptocurrency dealings, Reddit launched an NFT marketplace Thursday, where users can purchase blockchain-based avatars at a fixed price in fiat currency.&nbsp;



The avatars — which can be purchased without digital assets using credit or debit cards — cost anywhere from $9.99 to $99.99 and can be used as customizable profile pictures.&nbsp;



The NFT (non-fungible token) marketplace ought to expand upon Reddit’s previous avatar creation tool, which hit the market two years ago. The new NFT feature will give users a license to create any type of avatar and earn profits from their art, according to Reddit’s <a href="https://www.redditinc.com/blog/blockchain-backed-collectible-avatars-coming-to-reddit-via-new-storefront" target="_blank" rel="noreferrer noopener">announcement</a>.&nbsp;



“Collectible Avatars are limited-edition avatars made by independent artists,” the company said. “If someone sets their Collectible Avatar as their avatar on Reddit, they can mix-and-match the avatar gear with other Reddit avatar gear and accessories, and their profile image in comments sections will have a glow-like effect.”



The art can be used on and off of Reddit, the company said.&nbsp;



Collectible Avatars will be available to everyone in the coming weeks, Reddit said, but a limited number of Reddit users in the <a href="https://www.reddit.com/r/CollectibleAvatars/" target="_blank" rel="noreferrer noopener">Collectible Avatars community</a> were granted early access on Thursday.



It’s not Reddit’s first foray into NFTs. Earlier this year, the company, following <a href="https://cms.blockworks.co/twitters-new-nft-verification-tool-does-not-confirm-authenticity/" target="_blank" rel="noreferrer noopener">Twitter’s footsteps</a>, introduced a feature that would allow users to make Ethereum-based NFTs their profile pictures.&nbsp;



For its new avatars, Reddit worked with artists from popular creative communities, such as <a href="https://www.reddit.com/r/comics/" target="_blank" rel="noreferrer noopener">r/Comics</a>, the company said.&nbsp;



“From the start, our goal has been to empower artists to create and sell their work,” Reddit said. “Artists will get paid for every Collectible Avatar that sells on Reddit, less any fees, and are also entitled to receive royalties from secondary sales of their Collectible Avatars on open marketplaces.”



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Reddit’s New NFT Marketplace Opens the Door for Avatar Sales, Trading

Ornella Hernandez

<div id="highlights-block_62b0dc3fa1740" class="highlights">
 <ul>
 <li>Funds will be used to expand its primary and secondary marketplace and explore multi-chain opportunities</li>
 <li>The marketplace receives an average of 22 million unique sessions per month and sees over 40,000 NFTs traded daily</li>
 </ul>
 
</div>



Magic Eden, the top Solana NFT marketplace, announced a $130 million series B funding round Tuesday, bringing its valuation to $1.6 billion. 



Electric Capital and Greylock co-led the round, and Lightspeed Venture Partners joined as a new anchor investor. Previous investors Paradigm and Sequoia Capital participated as well.&nbsp;



Funds will be used to expand the company’s primary and secondary marketplaces to fully support the NFT (non-fungible token) creator and collector journey, Magic Eden told Blockworks.



The primary marketplace, the Magic Eden Launchpad, is a dedicated service for Solana creators that has launched over 250 projects to date. 



“We want to be there every step of the way of the long creator journey: pre-mint, launch, post-mint. We have always known our creators deeply, and we intend to develop other tools across operations, marketing and tech support,” Magic Eden CEO Jack Lu said.



As for the company’s secondary marketplace, which accounts for 92% of the Solana NFT market share, the plan is to explore multi-chain opportunities, invest in the team, and enhance the user experience with improved insights, analytics and trading tools.&nbsp;



Additionally, the company intends to double down on its nascent forays into NFT gaming after <a href="https://blog.magiceden.io/p/eden-games-launch-announcement" target="_blank" rel="noreferrer noopener">launching</a> the Eden Games platform earlier this year. Believing that the “future is ultimately cross chain,” it will also use funds to explore multi-chain opportunities to attract new users and projects.



Regardless of market movement, Magic Eden is building on a 10-year time horizon. “Magic Eden’s goal is to define the future of NFTs by supporting the next generation of digital creators and introducing the next billion users to Web3,” Lu said.&nbsp;



“We know that NFTs are the on-ramp into blockchain,” added Lu, and the most successful collections “pique people’s curiosity not because they’re simply an NFT, but because the value that the NFT represents entices new user acquisition — whether it’s token gated content, access…community-based projects, or artistic value.”



Magic Eden’s cumulative volume was at 19,901,672 solana at the time of writing. The marketplace’s most popular NFT collections in terms of trading volume in the past seven days are Primates, Okay Bears and Yeah Tigers.



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NFT Marketplace Magic Eden Raises $130M for Creator, Collector Support

Michael Bodley

<div id="highlights-block_a7a4bb5f1e5f523a41031b947c7b872c" class="highlights">
 <ul>
 <li>The company raised about $3 million at a valuation of about $30 million from a number of venture firms</li>
 <li>The startup has also partnered with a number of well-known gaming guilds, which it plans to tap in a bid to grow its market share</li>
 </ul>
 
</div>



Blockchain-based gaming platform <a href="https://docs.openblox.io/" target="_blank" rel="noreferrer noopener">OpenBlox</a> has raised its seed round as the company looks to ride a wave of interest in play-to-earn gaming in preparation of its first game launch later this year.



OpenBlox raised about $3 million at a valuation of about $30 million and plans to earmark the funds for product and business development, game design and additional staffers. The round was led by venture capital firm Shima Capital, a recently launched San Francisco firm helmed by veteran venture capitalist Yida Gao. Shima, after this story was published, reduced their contribution by an unspecified amount. 



Venture firms including 3Commas Capital, 100&#215;100 Venture Capital, Digital Strategies and MC Ventures were also set to participate in the seed round.



MC Ventures withdrew their commitment after publication, as did Digital Strategies. Representatives for the firms did not respond to a request for comment. 



OpenBlox, which employs ethereum virtual machine (EVM) technology in an effort to create a bridge between blockchains, also has an NFT marketplace in the works — and in the meantime has been partnering with a number of prominent gaming guilds.



The team plans to roll out three games — players can deploy blockchain applications, including NFT (non-fungible tokens), across the trio of metaverses. The gaming platform intends to create a Web3-powered community, as opposed to minting digital collectibles on a one-off basis — an approach that may deliver immediate profits, but one that rarely drives sustained user engagement.



It&#8217;s planning its first experience, dubbed RunBlox, to be released publicly in May on the Avalanche blockchain — along with an in-game token, $RUX. To play the game, users are required to hold a RunBlox shoes NFT, which will be partially distributed via an airdrop. 



Its digital universe is based on a collection of 7,998 genesis blox NFTs that can breed via in-game mechanics, similar to blockbuster play-to-earn giant Axie Infinity.



The fundraise comes as a growing number of top-tier traditional game-makers — including Ubisoft — are looking to employ blockchain elements.



Those blue-chip, so-called AAA developers have the leg up on game design and gameplay, industry participants say, but <a href="https://cms.blockworks.co/ubisoft-nft-efforts-are-off-to-a-rocky-start/" target="_blank" rel="noreferrer noopener">have faced a tough sell</a> from gamers wary of NFTs because of environmental concerns.



After starting with just Ethereum, the team has pivoted onto the Arbitrum blockchain, a side-chain, as it works to expand its decentralized finance (DeFi) dealings.



The startup plans to introduce an in-game token, which perhaps could convey governance features down the line. The longer-term plan is to create a decentralized autonomous organization (DAO) that would be controlled by game players.



Gao, who has previously backed other play-to-earn Web3 startups, said the team has “deep experience” in both traditional video games and as crypto natives. OpenBlox is also working with a number of top-tier developers and graphic designers, which helps, he said.



The challenge is to bridge avid traditional video gamers — accustomed to stunning graphics and engaging gameplay — with legions of crypto natives who may be less choosy on the gameplay front, but more particular when it comes to the blockchain technology in play and the potential to make money as a consumer in exchange for their time and loyalty.



“You want to basically have these new types of ways to play games, where the ownership is in the hands of the players, not the developers, and you&#8217;re able to bring in other users and bring in other counterparts to the space,” Gao said. “So, instead of having all the graphic designers and the people making the games in the studios control everything, you can bring in others.”



Elle Sia, a Web3-focused investment director at OpenBlox backer Digital Strategies, said the game&#8217;s graphics are significantly sharper than your average crypto-native game.&nbsp;



And the team, according to Sia, has been taking pains to ensure the gameplay is fun and engaging.



“It needs to be fun,” Sia said. “Otherwise, no one&#8217;s going to play it. Otherwise, it becomes a bit of a Ponzi, so far as you need new players to come in.”



The startup will also look to lean heavily on its partnerships with gaming guilds — including Real Deal Guilds (RDG), Ancient8, Good Games Guild and BreederDAO — to drum up interest in the metaverse venture and gain players worldwide.&nbsp;



Dr X, the pseudonymous OpenBlox founder, said in a statement that the startup’s incoming investors “bring a large network of stakeholders” to the venture.



Updated Dec. 14, 3:15 pm ET: Shima Capital reduced the size of its commitment after this story was published, and Digital Strategies, as well as MC Ventures, rescinded their capital pledges.



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Blockchain Gaming Startup Raises Round on Heels of Surging Play-to-earn Demand

<div id="highlights-block_62601d9fe4e71" class="highlights">
 <ul>
 <li>Coinbase said more features will be added in the coming months, including drops, minting and the option to purchase NFTs with a Coinbase account or credit card</li>
 <li>Transaction costs involved with the sale or purchase of NFTs will be waived for a &#8220;limited time,&#8221; with plans to introduce fees later</li>
 </ul>
 
</div>



US cryptocurrency exchange Coinbase has unveiled the beta version of its NFT marketplace — putting rivals, such as OpenSea and Rarible, on notice.



Dubbed Coinbase NFT, the marketplace comes with all the bells and whistles collectors have come to expect, including the options to buy, sell and create virtual goods.



Coinbase, though, is attempting to evolve the sector by enabling users to engage with digital collectibles in much the same way they might engage on social media. Rivals including <a href="https://www.binance.com/en/support/announcement/69b42ddb345c483c9e0a2a92ff588fa2" target="_blank" rel="noreferrer noopener">Binance</a>, which launched its own marketplace last year, have not yet offered that functionality.



Artworks, collectibles, GIFs and interactive pieces can all be upvoted or downvoted, commented on and shared across self-created user profiles. Those profiles will reflect a collector&#8217;s taste.



&#8220;We want Coinbase NFT to be a place that helps creators and collectors build and engage their communities,&#8221; the exchange provider said in a <a href="https://blog.coinbase.com/gm-coinbase-nft-is-now-in-beta-25e6c052aa43" target="_blank" rel="noreferrer noopener">blog post</a> on Wednesday.



Indeed, the firm&#8217;s new marketplace is akin to Instagram, featuring an algorithmic feed that displays content appealing to the individual by matching featured creators, such as&nbsp;Doodles,&nbsp;Boss Beauties and&nbsp;Azuki, to the potential buyer.



Currently, the service works only with NFTs (non-fungible tokens) linked to the Ethereum blockchain, but Coinbase said it would support NFTs on multiple chains in future. &#8220;Over time, we intend to decentralize more features by moving them from Coinbase tech to decentralized solutions.&#8221;



Coinbase said it would not charge transaction fees on the purchase or sale of virtual goods for a &#8220;limited time,&#8221; though the exchange did say it would &#8220;eventually&#8221; add fees.



Of course, NFTs are not without inherent costs. Minting a virtual item on the Ethereum blockchain, for example, can cost users upwards of hundreds of dollars in gas fees used to power the network.



There are exceptions, including when users opt for alternative chains such as Polygon or Enjin&#8217;s Efinity, which tout low or no minting fees. It remains to be seen whether those options will unseat Ethereum as the go-to choice for consumers.



In Coinbase&#8217;s case, a spokesperson told Blockworks users are responsible for minting and gas fees. 



Coinbase said it would begin beta testing with a &#8220;small set&#8221; of users who&#8217;ve been invited based on their position on a waitlist before expanding to the general public.



The exchange also said it would add more features, including drops, minting, token-gated communities and the option to purchase NFTs via a Coinbase account or using a credit card.



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Coinbase Unveils Social NFT Marketplace

Aaron Ahmadi

<h3>What is Rarible, and how can one invest in it? </h3>



Rarible is a non-fungible token, or NFT, marketplace built on Ethereum with ramps between multiple chains. It is part of the Rarible Protocol, a set of tools used to query, mint, list, buy or sell NFTs.



Want more like the Guide to Rarible? Scroll to the bottom for further reading and a <a href="https://cms.blockworks.co/category/education/" target="_blank" rel="noreferrer noopener">list</a> of other Blockworks Investor&#8217;s Guides.





<h3>A quick primer on NFT marketplaces</h3>



Many NFT marketplaces exist, and while they all support the transfer of NFTs, each has its own primary purpose and audience. Some are focused on event admission, others on GameFi, and others still on music and streaming. Rarible is primarily an art/collectible NFT marketplace, though it supports most NFT styles, including 3D iterations.



For deeper reading on other applications of NFTs and their marketplaces, check out the <a href="https://cms.blockworks.co/the-investors-guide-to-music-nfts/" target="_blank" rel="noreferrer noopener">Investor’s Guide to Music NFTs</a>.





<h3>What is Rarible?</h3>



Founded in 2020 by <a href="https://twitter.com/insider0x" target="_blank" rel="noreferrer noopener">Alex Salnikov</a>, the Rarible NFT marketplace is one of the most popular marketplaces in the crypto space. Boasting roughly $16 million in venture capital from firms like CoinFund and Coinbase Ventures, the platform has expanded since launch to a base of 1.6 million users.&nbsp;



It is part of an eponymous protocol that is DAO-governed and open-source and serves as a toolkit for developers and entrepreneurs to launch not only their own NFT collections but also custom storefronts. With Rarible Protocol’s governance token RARI, users can directly shape the evolution of the protocol and benefit from its success.





<h3>The case for Rarible</h3>



With the marketplace war in full effect and platforms like OpenSea under fire for centralized decisions, community-first platforms like Rarible make a compelling alternative.



However, though Rarible plans for complete decentralization in the future, the RARI governance token is still non-binding — the core team still has the final say over all decisions. That said, multiple structures have been put in place to balance power and reward users in the meantime.



<h4>Business model</h4>



To generate income, Rarible divides a 5% fee equally between the buyer and seller in each transaction. There are no other fees.



Previously, platform users were rewarded every Sunday with an airdrop of 75,000 RARI tokens — 50% divided among buyers based on their activity, and the other 50% divided among sellers in the same manner.



This airdrop distribution was intended to continue for roughly another 2 years, for a total run time of 4 years. However, RARI holders voted unanimously to end this weekly distribution on Jan. 16, 2022, due to the model&#8217;s failure to operate as an effective growth mechanism, as well as abuses by wash traders.



<h4>Tokenomic model</h4>



RARI total supply is capped at 25 million tokens. Ten percent of total supply has been airdropped to users. Thirty percent is currently owned by the Rarible team and their venture capital investors. The remaining 60% was intended to be distributed in the now-canceled weekly airdrop. Due to the semi-decentralized nature of its DAO (decentralized autonomous organization), RARI tokenomics are flexible and ever-evolving. What this means for token distribution is unclear, as the RARI team has only suggested “the DAO is shifting focus to allocating more funds to next-gen web3 projects building on Rarible Protocol and the long term growth of the space.”



<h4>Use cases</h4>



As with all NFT marketplaces, the primary use case for the platform is the transfer and collection of non-fungible tokens. However, the Rarible Protocol aims to expand into all manner of NFT usage in the space and has bridged the Flow and Tezos blockchains to allow for greater interoperability.



With no minting fees, Rarible offers a low barrier to entry for creators and makes scaling one’s collection accessible to all. By using multiple token standards and smart contracts, including ERC-721 and ERC-1155, both private and public, nearly every kind of NFT is supported. Users can decide to mint true NFTs that are unable to be changed, or they can mint flexible NFTs which can use smart contracts to change values in the future, should new utility be needed.&nbsp;



By enabling independent developers to build projects freely with the open-source protocol, Rarible has buttressed itself against the lack of speed with which centralized organizations tend to operate. Development happens quickly, and further use cases are added frequently.&nbsp;



Currently, users can not only buy and sell, but also mint, store, display, send and use their NFTs (depending on the utility of each NFT, of course) directly from the platform.





<h3>How to invest in Rarible</h3>



In the past, investing in Rarible was as simple as using the platform. Because users were airdropped tokens, participating was enough to earn.&nbsp;



Now, however, the options for investors are more limited and traditional, at least for the time being.



<h4>Buy RARI</h4>



As usual, the primary way to invest in a project is by purchasing its token. You can buy RARI at any number of exchanges, including Coinbase (centralized) and Uniswap (decentralized).



<h4>Use Rarible to collect or sell NFTs</h4>



Aside from venture capital funding (which the core team has not announced any further plans), buying RARI is the only way to invest in the project directly. While you no longer receive RARI for using the platform, you may wish to invest directly in NFTs. Buy others’ NFTs to start a collection, or mint your own and gather an audience, if your research helps you decide it is the right platform for your needs.





<h3>Final considerations</h3>



Purchasing RARI grants you access to the Rarible DAO community and the ability to influence the future of the project. Some choose to buy and hold the token, a few have created independent yield farming/liquidity provision protocols for the token (always be cautious with third-party pools), and others use them for governance.&nbsp;



Each investor must weigh their own goals and risk tolerance. Rarible is one of many NFT marketplaces, each with their own strengths and weaknesses. Your goals and interests are the best guides.





<h3 class="has-black-color has-text-color">Further reading</h3>



<h4 class="has-black-color has-text-color">More on NFT marketplaces</h4>



<a href="https://cms.blockworks.co/opensea-polygon-nft-sales-on-track-to-hit-2-2m-by-end-of-january/" target="_blank" rel="noreferrer noopener">OpenSea Polygon NFT Sales On Track to Hit 2.2M by End of January</a>



<a href="https://cms.blockworks.co/coinbase-plans-to-launch-nft-marketplace/" target="_blank" rel="noreferrer noopener">Coinbase Plans to Launch NFT Marketplace</a>



<a href="https://cms.blockworks.co/new-nft-marketplaces-make-grab-for-openseas-lead/" target="_blank" rel="noreferrer noopener">New NFT Marketplaces Make Grab for OpenSea’s Lead</a>



<a href="https://cms.blockworks.co/coinbase-teams-with-mastercard-to-make-buying-nfts-easy/" target="_blank" rel="noreferrer noopener">Coinbase Teams with Mastercard to Make Buying NFTs ‘Easy’</a>



<h4 class="has-black-color has-text-color">More on NFTs</h4>



<a href="https://cms.blockworks.co/exclusive-why-one-investor-bought-an-nft-of-wikipedias-first-edit-for-750k/" target="_blank" rel="noreferrer noopener">Exclusive: Why One Investor Bought an NFT of Wikipedia&#8217;s First Edit for $750k</a>



<a href="https://cms.blockworks.co/coinbase-wallet-to-bring-nfts-to-your-browser-extension/" target="_blank" rel="noreferrer noopener">Coinbase Wallet to Bring NFTs to Your Browser Extension</a>



<a href="https://cms.blockworks.co/tiktoks-venture-into-nfts-the-hype-and-alleged-mess/" target="_blank" rel="noreferrer noopener">TikTok&#8217;s Venture into NFTs, the Hype and Alleged Mess</a>



<a href="https://cms.blockworks.co/consensys-acquires-treums-team-nft-platform/" target="_blank" rel="noreferrer noopener">ConsenSys Acquires Treums Team NFT Platform</a>



<a href="https://cms.blockworks.co/visa-partners-with-former-mlb-player-to-arm-nft-creators/" target="_blank" rel="noreferrer noopener">Visa Partners with Former MLB Player to Arm NFT Creators</a>



<a href="https://cms.blockworks.co/the-incarcerated-silk-road-founders-nft-collection-and-the-dao-trying-to-save-him/" target="_blank" rel="noreferrer noopener">The Incarcerated Silk Road Founder’s NFT Collection and the DAO Trying to Save Him</a>



<a href="https://cms.blockworks.co/nexo-to-launch-nft-backed-lending-bitwise-debuts-an-nft-index-fund/" target="_blank" rel="noreferrer noopener">Nexo to Launch NFT-Backed Lending, Bitwise Debuts an NFT Index Fund</a>



<a href="https://cms.blockworks.co/sothebys-reports-100m-in-nft-sales-attracts-younger-tech-savvy-collectors" target="_blank" rel="noreferrer noopener">Sotheby’s Reports $100m in NFT Sales, Attracts Younger Tech-Savvy Collectors</a>



<a href="https://cms.blockworks.co/opensea-hits-3b-in-monthly-nft-volume/" target="_blank" rel="noreferrer noopener">OpenSea Hits $3B in Monthly NFT Volume</a>



<a href="https://cms.blockworks.co/why-investors-are-paying-millions-for-virtual-land-in-the-metaverse/" target="_blank" rel="noreferrer noopener">Why Investors are Paying Millions for Virtual Land in the Metaverse</a>





<h3>Get educated. Check out <a href="https://cms.blockworks.co/the-investors-guide-to-music-nfts/" target="_blank" rel="noreferrer noopener">The Investor&#8217;s Guide to Music NFTs</a>, <a href="https://cms.blockworks.co/the-investors-guide-to-avalanche-avax/" target="_blank" rel="noreferrer noopener">The Investor&#8217;s Guide to Avalanche</a>, <a href="https://cms.blockworks.co/the-investors-guide-to-defi-2-0/" target="_blank" rel="noreferrer noopener">The Investor&#8217;s Guide to DeFi 2.0</a> and <a href="https://cms.blockworks.co/the-investors-guide-to-yearn-finance/" target="_blank" rel="noreferrer noopener">The Investor&#8217;s Guide to the Yearn Finance</a>.</h3>



<hr class="wp-block-separator"/>



The content of this webpage is not investment advice and does not constitute any offer or solicitation to offer or recommendation of any company, product or idea. It is for general educational purposes only and does not take into account your individual needs, investment objectives or specific financial circumstances.

The Investor’s Guide to Rarible

Morgan Chittum

<div id="highlights-block_620d350029d36" class="highlights">
 <ul>
 <li>Scammers allegedly impersonated OpenSea staff to steal funds from NFT holders</li>
 <li>Last month, opportunists exploited OpenSea’s platform for over $1 million due to a user interface issue on its platform, according to Elliptic</li>
 </ul>
 
</div>



OpenSea is launching a customer service server with Web3 communications platform Metalink in an effort to mitigate risk of fraudsters pretending to be members of the company’s staff. Alleged scammers have previously impersonated the marketplace’s employees to deceive NFT owners in OpenSea’s Discord, scamming them out of millions of dollars.



“OpenSea will be partnering with Metalink as we seek to engage more deeply with the NFT ecosystem,” Stevey Tromberg, OpenSea’s head of community, said in a <a href="https://mirror.xyz/metajake.eth/baLwh3UUzhvbDt0n_V9xmxaTsiaoGCb6gOR6KIW-CuA" target="_blank" rel="noreferrer noopener">statement</a>. “Our goal is to create a direct channel for you to interact with OpenSea to get support, offer feedback, receive updates, and to share any other information that will help us better serve you.”



The company hopes to mitigate user risk via Metalink, which operates a “token gated” platform so that only users that own certain NFTs (non-fungible tokens) will have access.



Once users connect their cryptocurrency wallets to the platform, Metalink said, they’ll be connected with an “authenticated” customer support staff from OpenSea. There will be three official channels for OpenSea on Metalink, which include support, announcements and user feedback.



For the time being, Metalink said, these services can be utilized by certain holders, including owners of popular collections such as the Bored Ape Yacht Club, World of Women, Doodles and Cool Cats.



“This is one of many initiatives planned to expand the reach and effectiveness of our customer support reach, beyond just Discord,” Tromberg said. The new channels will have “dedicated community support staff from OpenSea spending a few hours a day in Metalink, all of whom will be marked as verified OpenSea staff.”



The announcement from OpenSea follows <a href="https://cms.blockworks.co/opensea-responds-to-nft-loophole/" target="_blank" rel="noreferrer noopener">reports</a> of users having their digital collectibles snatched up and resold at far below market value on the platform.



A spokesperson for OpenSea told Blockworks in a Jan. 25 statement that the company has since refunded 130 wallets of affected users, totaling 750 ether ($2.31 million as of Wednesday noon ET).



The loophole was not a bug or an exploit, according to the spokesperson, but rather a user interface issue that occurs when a user creates a listing then transfers the NFT to a different crypto wallet.



The leading NFT marketplace also faces a new competitive challenge from LooksRare, which <a href="https://cms.blockworks.co/new-nft-marketplaces-make-grab-for-openseas-lead/" target="_blank" rel="noreferrer noopener">hopes to lure</a> OpenSea users by rewarding NFT traders with the new platform’s governance token, as well as a cut of the ether from each trade.



OpenSea did not immediately respond to Blockworks’ request for comment.



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OpenSea Looks To Improve Customer Support and Fight Fraud

<div id="highlights-block_61e6fc973c4a8" class="highlights">
 <ul>
 <li>Coinbase Global Inc. (COIN) shares are trading lower following the announcement</li>
 <li>Coinbase initially announced plans to launch an NFT marketplace in 2021, but has yet to launch its new product offering</li>
 </ul>
 
</div>



Mastercard will soon allow customers to purchase non-fungible tokens (NFTs) on Coinbase’s upcoming NFT marketplace, the payment processing giant <a href="https://www.mastercard.com/news/perspectives/2022/coinbase-nft-marketplace-making-it-easier-for-everyone-to-buy-nfts/" target="_blank" rel="noreferrer noopener">announced</a> on Tuesday.&nbsp;&nbsp;



The two companies formed the partnership to “make the process of buying NFTs very easy,” Prakash Hariramani, Coinbase senior product director for payments and commerce, said in a <a href="https://www.mastercard.com/news/perspectives/2022/coinbase-nft-creator-economy-prakash-hariramani/" target="_blank" rel="noreferrer noopener">statement</a>.&nbsp;&nbsp;



<blockquote class="wp-block-quote">“Coinbase was basically an on-ramp for crypto for many, many users. Millions of people were able to access bitcoin for the first time by using Coinbase,” Hariramani said. “So we want to do the same thing for NFTs with Mastercard by solving the pain points — to make it as easy as possible to buy an NFT and make sure it’s the best consumer experience.”&nbsp;</blockquote>



Currently, prospective NFT buyers must go to marketplaces such as OpenSea and connect their crypto wallets to purchase a digital collectible. Mastercard and Coinbase’s deal will allow users to connect their bank cards and purchase an NFT without having to buy cryptocurrencies first.&nbsp;



Colin Fitzpatrick, Founder and CEO of Animal Concerts, an NFT startup focused on virtual concerts in the metaverse, told Blockworks that the partnership will “create a highly accessible on-ramp for mainstream adoption.”&nbsp;



Coinbase initially <a href="https://cms.blockworks.co/coinbase-plans-to-launch-nft-marketplace/" target="_blank" rel="noreferrer noopener">announced</a> plans to launch an NFT marketplace called Coinbase NFT in October 2021 but has yet to launch its new product offering. When launched, the platform will allow users to purchase, mint, showcase and discover crypto assets on a peer-to-peer marketplace, according to the company. Over 1 million people have signed up for the Coinbase NFT marketplace waitlist.&nbsp;



However, the company has not provided further clarification on when Coinbase NFT will go live.&nbsp;



<blockquote class="wp-block-quote">“Coinbase doesn’t need to hurry to release their NFT marketplace,” said Animal Concerts’ Fitzpatrick, “What they need is to create buzz, which is exactly what is happening.”&nbsp;</blockquote>



Coinbase Global Inc. (COIN) shares are trading 3.94% lower at $221.00 following the announcement. Mastercard Inc. (MA) has declined 1.37% as well, trading $367.53 per share, at time of publication.&nbsp;




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