NFT Platforms Should Be More Inclusive – Here’s Why
By Jenny Q. Ta, Chief Executive Officer at GalaxE.io by HODL Assets
As comparatively new as the NFT industry is, elitism is already cropping up around the types of payment with which buyers and sellers can carry out transactions. The few prominent platforms that enable these marketplaces to function were each built on their own blockchains, and thus predisposed to accept only their own native token.
But if the industry is to continue gathering steam and fulfill the promise it has displayed even amidst the ongoing downturn, its leaders need to think outside the box when it comes to payment. It’s time to lay out the case for creating more inclusivity in the ways NFTs are purchased and owned – because it’s the only way forward.
Opening the ownership gates
The most obvious advantage to allowing NFT transactions through traditional online banking methods like PayPal (in addition to native crypto tokens) is the likelihood of a rise in adoption. There are plenty of prospective buyers who would love to invest in NFTs but are not tech-savvy or don’t have a lot of familiarity with Web3 apps like Metamask, one of the top-performing apps among those required for an NFT purchase.
Meanwhile, those who are inherently less receptive to the concept of NFTs are likely to be further repelled when confronted with the demand to invest in and use non-fiat money in order to buy and own an NFT. Adding PayPal, Visa and Mastercard capabilities to NFT transactions can help legitimize its image, bring skeptics into the fold, and exponentially increase the reach and influence of the industry.
Expanding user power
Related to the idea of adoption, individual users will feel more empowered when they can obtain NFTs by investing money they already have in a form they already know. Simplicity is key. Particularly for those without much knowledge or expertise in tech (let alone cryptocurrency), it helps to start slow and experiment more over time.
Eventually it’s likely that a single customer will have two forms of payment – crypto and fiat – that will be interchangeable. Both means of payment would be connected in such a way that crypto could be seamlessly converted to fiat and vice versa.
Creating an interchangeable relationship between crypto and fiat currencies would eliminate a problem that the industry is currently grappling with, particularly the monopoly that crypto exchanges like Coinbase have over on- and off-ramp to fiat. Many customers are disinclined to open a Coinbase, a Metamask, or a number of other apps simply to purchase an NFT or two. Non-enthusiasts will be drawn to a streamlined process in which a credit card or other trad-fi institution directly converts their fiat funds into different cryptocurrencies.
That said, it isn’t even possible for someone to own NFTs without owning some form of crypto, because NFTs are built on the blockchain and therefore must be linked to a cryptocurrency. China has its own digital currency (the digital yuan) which allows its own people to invest in NFTs and which cannot be purchased by anyone outside of China. The country could not make this work on fiat money alone without featuring a conversion to crypto.
Normalizing a decentralized network
Another upshot of diversifying methods of paying for NFTs includes convincing the public of the value and validity of a decentralized financial system – then proving its staying power. The industry is only a few years old and the innovations it promises need time to take root in the general consciousness.
Those innovations are moving fast. Some NFT platforms have embedded a cross-chain, or multi-chain, which is a singular marketplace that offers more than one blockchain. OpenSea, currently the largest and most established NFT platform, has made a large portion of its sales through the Ethereum blockchain. It has lately added Polygon and is beta-testing Solana, but these two are not enough on their own. Fantom, Avalanche, Stellar, and Binance Smart Chain, among other blockchains, will be a boon to platforms that grant them greater distribution, as will conventional payment means like PayPal and credit cards. The more, the merrier.
The tide is turning
The worlds of Web2 and Web3 payment are already colliding, as demonstrated by the efforts of companies like Crossmint, Transak and the brand-new MoonPay. These companies are actively looking to collaborate with NFT platforms and marketplaces in recognition of the massive potential of crypto and fiat currencies joining forces. It would behoove NFT platforms to reciprocate the eagerness to collaborate if only to open themselves up to a diversified customer base. After all, a transaction is a transaction, and money made is money made, no matter what it looks like.
About the author:
Jenny Q. Ta, CEO of NFT aggregator GalaxE.io by HODL Assets, is a Wall Street veteran, self-made millionaire, and seasoned entrepreneur. As Founder and CEO of Titan Securities, a full-service broker-dealer and investment banking firm, she built and led the company until its acquisition in 2005. Prior to that venture, she founded Vantage Investments, another full-service broker-dealer and investment banking firm, and grew it to a third of a billion dollars in assets. Her most recent company, CoinLinked, achieved a $200M market cap in 18 months and was acquired by HODL Assets in August 2021; she drove the launch of its new NFT social platform GalaxE. Her book Wall Street Cinderella details her escape from Vietnam during the war and traces her path from welfare to Wall Street.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.