Home - News - Sotheby’s Launches On-Chain NFT Marketplace

James Carter

May 3, 2023

Sotheby’s Launches On-Chain NFT Marketplace

Users are now able to purchase curated non-fungible tokens (NFTs) on the Ethereum (ETH) and Polygon (MATIC) networks thanks to the creation of a non-fungible token (NFT) secondary market by the prestigious auction house Sotheby’s.

Sotheby’s Launches On-Chain NFT Marketplace

The sales mechanism will be connected and run entirely on-chain, giving customers the option to pay with ether (ETH) or MATIC (a native token of one of the blockchains) as they make their purchases.

Sotheby’s Launches On-Chain NFT Marketplace

In addition, Sotheby’s Metaverse, which is the Web3 branch of the art auction firm, will make it possible for users of the platform to engage in direct commerce with one another.

Art Auction Giant Sotheby’s Unveils On-Chain NFT Secondary Marketplace

It was also mentioned that there is a selling fee of 2.5% and that artist resale royalties will be honored directly on-chain through the use of smart marketplace contracts.

The platform will automatically make payments to the artists based on the royalty rate that they choose.

According to Forbes, “NFT owners are also free to take their NFTs to other exchanges that don’t honor royalties,”

There are thirteen artists who have already been given permission to sell their NFTs prior to the auction house Sotheby’s seeing them. This means that the artists do not have to submit the artwork to be evaluated by the auction house.

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They will be able to sell artworks that already exist as well as artworks that have not yet been made.

Tyler Hobbs, Claire Silver, Sarah Zucker, XCOPYPY -0.1%, Diana Sinclair, IX Shells, Refik Anadol, Sam Spratt, Pindar van Arman, Osinachi, Hackatao, and Sebastio Salgado are some of the artists who contributed to this exhibition.

“The opportunities to expand Sotheby’s Metaverse with a fully on-chain peer-to-peer markets is an important step forward in our evolution within the digital arts and collectible space,” said Michael Bouhanna, vice president and head of NFTs and digital art at Sotheby’s, in a press release.

Sotheby’s Launches On-Chain NFT Marketplace

The nearly 300-year-old auction house joined the non-fungible token (NFT) arena in April 2021 and even hosted several record-breaking sales that years, such as a CryptoPunk that sold for $11.8 million and a Bored Ape Yacht Club artwork that sold for $3.4 million. Both of these sales broke previous records in their respective categories.

More recently, in March of this year, Sotheby’s hosted a benefit auction in honor of International Women’s Day. The event was titled “My Body, My Business,” and it was held in collaboration with UnicornDAO, a collectors’ decentralized autonomous organization (DAO) that is dedicated to women’s and gender-fluid non-fiction titles.

After receiving criticism for the initial launch of the “Glitch: Beyond Binary” NFT auction for its lack of variety, the house decided to resurrect the auction around the middle of April.

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A few days later, it came to light that Sotheby’s was getting ready to hold an auction for a collection of the non-fungible tokens (NFTs) that had been confiscated from the crypto hedge fund that is no longer in business called Three Arrows Capital (3AC).

Sotheby‘s has announced that it will auction off the Grails collection in an effort to retrieve a piece of the $3 billion that the defunct fund owes to its various creditors. The Grails collection is comprised of digital artwork that belonged to 3AC and its Starry Night Capital NFT-collecting fund.