Magic Eden, largest Solana-based NFT platform, makes royalty fees optional

Magic Eden, largest Solana-based NFT platform, makes royalty fees optional

The platform said the move was in line with growing market trends, but some are concerned about what it means for the industry.

Magic Eden, the largest non-fungible token (NFT) marketplace in the Solana ecosystem, has moved to make paying NFT creator royalty fees optional, following in the footsteps of rival marketplaces which have eaten into its market share in recent months.

The platform will also be waiving all platform fees for the foreseeable future, Magic Eden said in a Twitter thread announcing the changes on Saturday.

Anndy Lian, author of the new book “NFT: From Zero to Hero,” told Forkast the attempt to win back users by lowering or removing fees surprised him as he was doubtful of the long-term sustainability of the plan.

“For [an] NFT platform, where the secondary market is at a really bad situation right now, I am doubtful whether the zero fees are going to work very well,” he said.

NFT royalties give the original creator a percentage of the sale price each time that NFT creation is sold.

Magic Eden is a giant in the Solana ecosystem, controlling roughly 90% of all sales, and almost nine times the Solana sales of leading NFT marketplace OpenSea, which added support for Solana NFTs in April 2022.

Magic Eden also raised US$130 in series B fundraising in June, bringing its valuation to US$1.6 billion, and cementing its status as a “unicorn,” a privately held start-up with a valuation over US$1 billion.

“This is not a decision we take lightly,” Magic Eden said in a tweet announcing the move, while also acknowledging the industry has been slowly moving towards optional creator royalties for a while. “We understand this move has serious implications for the ecosystem. We also hope it is not a permanent decision.”

Royalties for NFTs are typically set to between 5% and 10% and are often encoded into the smart contract of the NFT itself. Marketplaces are able to rework the code around the sales of these NFTs, however, effectively allowing them to set the fees to whatever they like.

In the case of Magic Eden now, that fee now will be left up to the user to decide whether or not to pay. However, if users choose not to pay the fee, they risk being excluded from the full utility or perks of owning the NFT, the platform warned.

Removing this structure incentivizes creators to lift their prices in order to compensate for this loss of income, he said, which could add extra pressure to an already struggling market that is currently extremely sensitive to pricing.

The issue is compounded if smaller marketplaces follow Magic Eden’s lead, which Lian said they will be incentivized to do.

“So, it goes back to the whole equation: How long is this bear market going to be and how long can you sustain that kind of strategy?” Lian said, “If I’m not wrong, maybe [Magic Eden] can for the next two, three, four years, maybe. But I’m not so sure about the rest.”

Lian explained this was being done to artificially increase an NFT’s trading volume to give the impression it is more highly sought-after than it actually is. This not only discredits the industry but deceives unwitting buyers into potentially paying inflated prices for NFTs.

The issue has become so prevalent on Magic Eden in the few days since fees were removed that OpenSea has since announced it is in the process of temporarily blocking Solana collections from the Top and Trending list on its homepage to avoid “gaming” those numbers.

Secondary monthly NFT sales in September were only US$550 million, an almost 90% decrease from its high in January 2022. NFT creators, marketplaces and collectors alike have had to make difficult choices about how to respond to the difficult market conditions.

“There’s a lot of uncertainty. Based on the current charts, we should still be going down or going sideways for the next quarter or so,” he said.

 

Source: Magic Eden, largest Solana-based NFT platform, makes royalty fees optional (forkast.news)

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Ethereum Merge hits graphic cards, but GPU-based mining is not dead

Ethereum Merge hits graphic cards, but GPU-based mining is not dead

Ethereum’s shift of its consensus algorithm from proof-of-work (PoW) to environment-friendly proof-of-stake (PoS) in an event called ‘The Merge’ earlier this week will result in sizeable graphic card (GPUs) dump and hit manufacturers such as Nvidia and AMD.

As The Merge has obviated the need to secure the blockchain network, GPUs are no longer needed on a mass scale and will go for a significant discount, experts said. However, this may not happen immediately as the GPUs can be deployed for a new Ethereum hard fork and mining other stablecoins.

“With the Merge on the cards for a long while now, I would imagine most miners would have planned ahead with alternative money-making schemes. But, once the flooding stops, it would revert to basically as it is now, unless the increased demand for GPUs drop, caused by more than just mining. Things like the extreme influx of using computers for entertainment and work purposes will continue as usual,” Raj Kapoor, Founder and CEO of India Blockchain Alliance, told Moneycontrol.

According to experts, there will be increased availability of second-hand GPUs that have been mined to bits.

With The Merge, the energy used to maintain the whole Ethereum network will drop by a huge 99.9 percent, which will result in a 0.2 percent decrease in world electricity use. However, not all ETH miners may want to give up their GPU exploits in favour of the more environmentally friendly PoS variant.

What is GPU-based mining?

The majority of crypto mining in the beginning, especially for Bitcoin and Ethereum, was done on basic CPUs for home computers but as demand increased so did the mining difficulty.

People then discovered that their GPUs were well suited to handle algorithms since these computer parts were actually intended to handle equations for 3D and physics rendering, which are identical to the equations in the blockchain algorithms.

Since GPU mining was far more efficient than using other types of mining gear, it signalled a major shift for the community.

While traditional CPUs were like blunt instruments when it came to mining cryptos, in contrast, GPUs were well-honed Samurai swords. They established a new benchmark since they were much more efficient than the previous technology.

EthereumPOW made for GPU miners

Despite Ethereum Classic already existing as a PoW alternative to the main ETH chain, a new hard fork called EthereumPOW (ETHW) was made for GPU miners.

A hard fork is a significant modification to the network protocol that makes previously invalid blocks and transactions valid, or vice versa. Simply put, a hard fork happens when nodes of the most recent version of a blockchain stop accepting older versions, leading to a permanent separation from the earlier network version.

The ETHW chain’s developers want to replicate the whole original ETH blockchain, including all of its currencies, NFTs, Dapps, and liquidity pools. However, the value of ETHW remains uncertain as there would be few Dapp operators and unlike Ethereum Classic, it is not backed by any stablecoin. Also, emulating the original Ethereum chain would be tricky since ETHW now contains the difficulty bomb, which will render GPU mining obsolete around 2023.

Even so, ETHW was able to secure the backing of BitMEX and Poloniex, two reputable crypto exchanges, as well as the inventor of TRON. Although ETHW has not yet been released as a token, its IOU worth is now trading around $9.09. IOU stands for ‘I owe you,’ which denotes that one party owes another one money.

Since the chain has not yet forked, the ETHW coin would derive from a possible Ethereum hard fork.

Mining for other cryptos

After The Merge, GPU miners will be looking elsewhere for opportunities, like mining some other coin which would still reward firms of graphics cards.

Ethereum is not the only coin that is mined decently on a graphics card. Beam and Ravencoin are actually similarly profitable at this time and though ETH mining has stopped, these will continue. While there will be increased competition to mine these coins, it would balance out eventually.

“Additionally, the companies that produce and distribute GPUs are already selling such items in bundles with other products to drive up their sales and profit margins,” Kapoor adds.

The much-anticipated GPU flood that would curb inflated pricing might be delayed since many GPU miners want to continue supporting Ethereum Classic, ETHW, or whatever PoW currency becomes more profitable.

Interestingly, in anticipation of the debut of the next generation, chip makers like Nvidia and AMD are now selling the majority of current-generation GPUs for less than the manufacturer’s suggested retail price (MSRP).

The impact of PoS can be reduced if PoW chains keep demand high

Anndy Lian, Chief Digital Advisor, Mongolian Productivity Organization, says that the ETH upgrade would be one of the big revenue misses by Nvidia and its stock has fallen nearly 20 percent since the previous quarter due to a slowdown in the gaming business and weakness in the global markets.

“The impact from the change to POS would be reduced if the forked PoW chains can keep their demand high, getting support from the big miners and backed by strong communities who believe that PoW is the core value. If this is executed properly with the support of Nvidia, this market push would surely put the listed company in a much better position,” Lian says.

More certainty for chip manufacturing companies

A Barron’s report quoted analysts led by Stephen Glagola at investment bank Cowen saying that The Merge will affect chip manufacturers whose graphics processing units have been employed in the process because Ethereum’s switch to PoS will eliminate the necessity for mining of Ether.

But a decline in mining is not necessarily negative, rather, it will provide companies manufacturing chips more certainty and eliminate the risk of demand that is blindsided by unstable crypto prices.

“For GPU suppliers Nvidia and to a lesser extent AMD, we view the upcoming Merge as a long-term positive for sentiment as it likely removes the risk of another painful crypto bang/bust cycle in the future,” said the Cowen team.

Source: https://www.msn.com/en-in/money/topstories/ethereum-merge-hits-graphic-cards-but-gpu-based-mining-is-not-dead/amp/ar-AA11Z7rn

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Anndy Lian spoke at launch of Alawad Fund “Dubai’s Drive To Be a Global Hub for Crypto Innovation Show Results”

Anndy Lian spoke at launch of Alawad Fund “Dubai’s Drive To Be a Global Hub for Crypto Innovation Show Results”

As regulation hots up in the US following the Executive Order, and with the prospect of new UK government plans to regulate the cryptocurrency market in the coming weeks, it’s clear that countries can no longer sit on the sidelines of the crypto industry. The potential shift in power spurred on by innovation in blockchain and related technologies means playing safe for jurisdictions is no longer an option. The UAE is well positioned to be a regional hub for the crypto industry, with a regulatory structure in place and with more than 350 blockchain companies operating there. UAE also took advantage of the pandemic to attract business with aggressive vaccination while largely keeping its borders open, while retaining business through low taxes and a light touch regulatory mindset – a perfect environment for attracting crypto entrepreneurs in the last two years.

Indeed, some call Dubai the fastest growing hub in the world right now for crypto technology, reflected in the fact that Binance has now set up offices in Dubai. It’s also benefiting from business relationships with the booming Israeli crypto sector based in Tel Aviv, according to a report in the Wall Street Journal following recent peace accords. In addition, it’s reported that the Abu Dhabi-headquartered fund Mubadala, one of the largest sovereign wealth funds with over $243bn AUM, is investing in the blockchain sector. Mubadala’s CEO Khaldoon Al Mubarak told CNBC in December that he was not a skeptic but saw it as real. But he did admit the regulatory format was not there totally, but it needed to be in place in order for the asset class to transition into something new. “We are looking at the ecosystem around crypto and we are investing in that system.”

This global momentum to embrace crypto and blockchain was addressed by the Chairman of BigONE Anndy Lian recently, in a speech to His Highness Awadh Mohamed Al Sh Mogrin Sultan, a top-ranking diplomat, and Honourable Chairman of the Alawad Fund. Lian said he saw similarities with the innovative and supportive crypto environment in Singapore: “I’ve actually seen the same trend in Dubai, I’ve met some good projects that are very serious about what they do, whether it’s looking at web3 or decentralized storage, or DeFi.”

Elaborating on two key trends starting with DeFi Lian said the integration of traditional finance products into DeFi such as bonds meant this was a sustainable sector for a country such as Dubai. He said the second significant trend was the crypto mining business with a very good uptake of new miners. “There are many new investors going into crypto mining, and when I say big investors, we’re talking about at the very least tens of billions of dollars going into the mining space. If you look at the longer term, it is a very lucrative investment.”

Lian remarked that as a partner & LP to several funds, with an AUM (assets under management) of around $500 million and having invested in crypto startups since 2018, he was looking forward to talking to people and brands about working together on the investment front in Dubai. “I want everybody to work together. You know, we should work together, be open, and welcome, good partners; this is the same philosophy that you do as well; this is the place where we will start to build a new story,” added Lian.

Earlier in March His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, approved the first ever law on regulating virtual assets. “Today we are participating in designing the future of virtual assets globally.” Sheikh Mohammed stressed that Dubai possesses all the capabilities to be a key global center in the field of virtual assets, supported with the new legislative environment. “Dubai will provide the most advanced virtual asset ecosystem in terms of organization, governance and security. Approving the virtual asset law and establishing the Dubai Virtual Asset Regulatory Authority is a vital step that establishes the UAE’s position in this sector… a step that aims to help the sector to grow and protect investors,” he confirmed.

The Chainalysis ‘2021 Geography of Cryptocurrency Report’ published in October 2021, found plenty of potential for growth in the Middle East in general and specifically the UAE. The Middle East as a whole is the second-smallest cryptocurrency economy studied by Chainalysis, having received $271.7 billion worth of cryptocurrency between July 2020 and June 2021 (6.6% of global activity). “While that total is low compared to other regions, it represents nearly a 1500% increase over the Middle East’s total activity the previous year, making it one of the fastest-growing markets in the world,” the report’s authors said.

Reflecting the success in promoting crypto businesses in Dubai, it was reported on March 28 that cryptocurrency exchange business Bybit has received in-principle approval to conduct a full spectrum of virtual assets business in Dubai, the firm announced with the UAE Ministry of Economy at the World Government Summit 2022. Bybit also confirmed that it plans to set up its global HQ in Dubai, under the Emirate’s “test-adapt-scale” virtual assets market model.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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