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July 1, 2022
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FTX Launches $10 Paywall for Its New NFT Minting Feature

The exchange was forced to establish pay access to its new NFT feature in order to reduce spam.

Opening up to the growing arts market, FTX recently announced the ability to create custom NFTs directly on its exchange. However, FTX launches a $10 Paywall for its new NFT minting feature,  they were quickly forced to put an expensive paywall behind the feature in response to a wave of spam images.

NFTs on FTX Exchange

The new feature was announced by FTX CEO Sam Bankman Fried (aka SBF) on Twitter this morning. His tweet linked to a simple test NFT that he posted on the exchange as a sample. The image, just a white background with the word ‘TestIt’s handwritten, it already has a bid of $2100.

According to the SBF thread, all NFTs will be cross-chain compatible with Ethereum / Solana. Deposits and withdrawals will open in the next two weeks and at that time, “external NFTs” will also be available.

FTX’s adoption of NFT creation and trading is no surprise given the enormous growth of the market in recent times.

Furthermore, even institutions of “superior culture” are entering space. The State Hermitage Museum recently launched a premium NFT collection, including the work of Leonardo Da Vinci, with initial bids of 10k BUSD.

FTX gets spam and immediately sets up Paywall.

While the system feature was initially free, it also left it open to abuse. Just 7 hours after its announcement, the SBF returned to Twitter, claiming that the exchange was flooded with “a large number of submissions”. Apparently, “lots of” of these images were just identical images of a fish, indicating spam.

In hasty response, the CEO set a one-time fee of $500 for first NFT submissions to combat this threat.

Users did not welcome this update. Many were quick to point out that $500 was a pretty expensive barrier to entry and that simply coining Ethereum seemed like a much cheaper alternative at that point.

Soon after, the SBF reconsidered its decision and dropped the $500 application fee. Now it has implemented a flat fee of $10 per NFT. With this, he hopes to reduce spam, while making the [criação de NFT] accessible.

FTX will refund all users who recently paid $500 to create their NFT. The public appears to be satisfied with the development, but it remains to be seen whether this is enough to reduce spam.

Source: CryptoPotato

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